Exec: Fake eCARs may cost gov’t P25M

By Morexette Marie B. Erram |October 08,2018 - 11:07 PM

CEBU CITY GOV’T SEEKS BIR-7’S HELP

The national government might have lost P25 million in taxes related to real estate properties if 15 electronic Certificates Authorizing Registrations (eCARs) would be proven to be fake.

Acting Cebu City Assessor, lawyer Eleodoro Diaz IV, said that they had asked the help of the Bureau of Internal Revenue in Central Visayas (BIR-7) to help them validate the eCARs since 2 of the 15 documents turned out to be fake.

If all these eCARs would be fake, then it would mean a lesser share of the internal revenue allotment (IRA) for the Cebu City government, said Diaz in an interview on Monday.

He said that the initial estimate of taxes not collected due to issuance of fake eCARs might be around P25 million, which would supposedly form part of the Cebu City government’s IRA.

An eCAR is one of the requirements needed to transfer the ownership of real estate properties because it will serve as proof that the property subject for transfer is cleared from all tax obligations.

They can only be issued by the BIR.

Diaz said that they started checking on the eCARs after they received reports about the issuance of fake tax registration certificates.

He said that some workers in Cebu City Hall were allegedly behind them by pretending to be fixers to their victims.

“An investigation will be conducted on these employees, and there is a possibility that they may lose their jobs. And we will consult with the city legal on the appropriate actions,” Diaz said.

A memorandum issued by the executive director of the Bureau of Local Government Finance (BGLF), Ma. Presentacion Montesa, stated that internal revenues, including capital gains tax, collected by the BIR are the sources of IRA.

“A considerable decline in the collection efficiency of the BIR will surely affect the IRA allocation of local government units (LGUs),” the memo added.

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