8 YEARS LATER

In 2023, the government reported that the BIR offices in Pampanga filed criminal charges against both the SELLER and the BUYER of several parcels of land — for allegedly using a FAKE BIR Certificate Authorizing Registration (CAR).

If proven, both parties may face:

+ up to 10 years imprisonment for tax-related offenses, and

+ up to 6 years for falsification of documents.

What makes this case extra disturbing?

Interesting facts:

+ The case was filed around 8 years after the transaction.

+ The alleged unpaid taxes were not even massive:

Php600,000 (CGT)

Php150,000 (DST)

+ The BIR reportedly discovered the fraud through “confidential information.”

+ And most importantly: BOTH the seller and the buyer were implicated.

So how do people even fake a CAR?

JPRE: I once heard that certain individuals were able to obtain unused CAR forms. From there, all they had to do was find a “fixer,” fill in the details, and forge the signatures. That’s why the CAR never was never encoded in the BIR’s system.

Lessons:

1) Think twice before getting “creative.”

Is Php750K worth the possibility of spending years in court—and potentially prison?

2) A clean title does NOT mean you’re safe.

Even if a buyer was able to transfer the title, it doesn’t mean the transaction can’t be revisited later.

TAKE NOTE: In cases involving fraud, the BIR has a longer window to pursue cases — and the counting may begin from the time the fraud is discovered, not necessarily the date of sale. In plain English: a sketchy transaction can come back to haunt you years later.

3) It only takes ONE person to report it.

Eight years is a long time — which suggests something triggered the informant. It could even be as simple as someone trying to squeeze money out of the parties years later, failing, and retaliating by reporting the transaction.

Choose who you do business with.

4) “Seller pays all taxes” clauses won’t save you.

This case is a reminder that buyers can still get dragged into criminal complaints. Even if you eventually win, the stress, legal costs, and reputational damage are brutal.

5) Always verify the CAR by securing a certified true copy from the BIR.