MANILA, Philippines - The Bureau of Internal Revenue (BIR) yesterday lodged with the Department of Justice a P32-million tax evasion complaint against the daughter of Janet Lim-Napoles, the alleged mastermind of the pork barrel scam.
Napoles’ daughter Jeane Catherine was slapped with a complaint for willful attempt to evade or defeat taxes for 2011 and 2012 under the National Internal Revenue Code.
The complaint came after the younger Napoles drew public ire for flaunting in her Instagram and Tumblr accounts her shopping sprees, lavish holidays, expensive presents and glitzy parties.
The move also followed the filing of criminal charges against Napoles and her husband for incurring tax liabilities amounting to over P60 million.
BIR commissioner Kim Henares said Napoles’ tax liability amounted to P32.06 million inclusive of surcharges and interests, broken down into P31.38 million in 2011 and P680,000 in 2012.
An investigation conducted by the BIR also found that the younger Napoles acquired a condominium unit at the Ritz Carlton in Los Angeles, California worth P54.73 million, and a farm lot in Bayambang, Pangasinan valued at P1.49 million.
BIR records, however, showed that Jeane did not file any income tax return in 2011 and 2012 nor were there any records of returns filed that would prove that gifts, bequests or devices were given to her.
The BIR used the expenditure method of investigation, where Jeane’s unreported income was established by comparing the amount of money she spent to purchase the properties and her unreported income.
The expenditure method of tax investigation is based on the theory 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.
“Thus, the difference between the aggregate yearly expenditure of (Jeane Catherine) Napoles for taxable years 2011 and 2012 and total amount of unreported income for the same years constituted a substantial under-declaration of more than 30 percent and such unreported income is considered as prima facie evidence of her fraudulent scheme to defeat payment of taxes,” the BIR said.
Henares said Jeane has not filed any income tax return since she obtained a tax identification number with the BIR in 2008.