Napoles couple faces P61-M tax evasion charges-A A +A
Thursday, September 26, 2013
MANILA (Updated) -- Tax evasion cases worth P61.1 million were filed by the Bureau of Internal Revenue (BIR) on Thursday against alleged pork barrel scam mastermind Janet Napoles and her husband Jaime.
The government is running after P44.68 million in unpaid dues from Napoles while her husband has a tax liability amounting to P16.43 million.
BIR Commissioner Kim Henares said the cases are just preliminary.
“The amount is just what we have as of now, it can keep on growing but with this amount, there is already tax evasion committed. The amount, in comparison to the amount that has been talked about in the scam, is not that big," she told reporters at the Department of Justice (DOJ).
The BIR said Napoles failed to supply correct and accurate information in her income tax return (ITR) for years 2004, 2006, 2008, and 2009 and did not file ITRs from 2010 to 2012. Her tax registration was cancelled in 2010.
Jaime, on the other hand, did not declare anything in 2009 and failed to file ITRs in 2004, 2006, 2008, 2010, 2011 and 2012.
From 2004 to 2012, the BIR said the couple purchased various real properties, a number of motor vehicles, several insurance policies and club shares.
They also invested millions of pesos in various new corporations.
The acquisitions include condominium units in City & Land Mega Plaza and the Discovery Center, parcels of land in Pangasinan and Kidapawan City, Insurance policies with Insular Life Assurance Co. Ltd., Philippine American Life & General Insurance Co. Inc., and Philippine Axa Life Insurance Corp., and vehicles such as Ford Lincoln Navigator, Honda Civic and Porsche Cayenne.
Napoles’ total acquisitions reached P4.17 million in 2004, P22.29 million in 2006, P4.35 million in 2008, P9.84 million in 2009, P6.33 million in 2010, P5.64 million in 2011 and P6.89 million in 2012.
But in her ITR, she only declared P195,800 in 2004, P100,744.59 in 2008, and zero in 2006 and 2009. No ITR was filed for the years 2010, 2011 and 2012.
Her husband’s total acquisitions amounted to P1.42 million in 2004, P5.51 million in 2006, P0.78 million in 2008, P9.25 million in 2009, P2.1 million in 2010, P1.17 million in 2011, and P3.65 million in 2012.
He failed to file any ITR for the said years except in taxable year 2009 where he declared nothing.
The BIR used the expenditure method in assessing the Napoles couple’s tax deficiency.
This is based on the assumption that if the subject taxpayer’s expenditures during a given year exceed his reported income, and the source of the funds used to make the expenditures is unexplained, such expenditures represent unreported income.
As a result, Napoles’ tax liability (inclusive of surcharge and interest) is broken down as follows: P3.49 million in 2004, P19.77 million in 2006, P3.18 million in 2008, P7.74 million in 2009, P3.93 million in 2010, P3.14 million in 2011, and P3.42 million in 2012.
Specific tax deficiencies of Napoles’ husband are the following: P0.83 million in 2004, P4.78 million in 2006, P0.45 million in 2008, P6.33 million in 2009, P1.52 million in 2010, P0.77 million in 2011, and P1.75 million in 2012.
Napoles earlier insisted that she acquired her wealth through legitimate means, such as trading of merchandise goods and coal mining in Indonesia.
Henares said the cases do not include the corporations or non-government organizations (NGOs) allegedly linked to Napoles. The BIR is also probing Napoles’ properties abroad.
The BIR chief, however, declined to say if public officials charged in the misuse of pork barrel will be probed for tax evasion.
"When we investigate, it is objective. The BIR is not a political institution. It's an implementing institution. We look at things based on evidence and file cases on what evidence tells us," said Henares. (Virgil Lopez/Sunnex)