MANILA, Philippines—The Department of Justice (DOJ) has dismissed three excise tax complaints against contractors Pacifico and Sarah Discaya, whose luxury vehicles were previously seized by the government, DOJ spokesman Assistant Secretary Paulo Martinez said Tuesday.
Martinez explained that under the country’s National Internal Revenue Code, the excise tax is the responsibility of the importer, not the end consumer. The seized vehicles, which include high-end models such as Land Rover, Range Rover, Cadillac Escalade, and Mercedes-Benz, were purchased by the Discayas from local dealers, who are the ones legally obligated to remit excise taxes.
“The Discayas were simply end consumers,” Martinez said. “The local dealer, as the importer, is the one obligated to pay the excise tax. Buyers have no liability if the importer fails to remit the proper taxes,” he said.
Despite the dismissal of excise tax complaints, the Discayas are facing two cases of alleged tax evasion. These relate to purported under-declaration of income in their tax returns for 2020 and 2021. “The Bureau of Internal Revenue found misdeclaration in their income tax returns compared to the profits of their sole proprietorship, Saint Gerard Construction, during the taxable years involved,” Martinez said.