DOJ approves P61-M tax raps vs Napoles couple

MANILA, Philippines - This time, Janet Lim-Napoles will face a tax evasion case before the Court of Tax Appeals (CTA) while standing trial in the Sandiganbayan over a string of cases related to the multibillion-peso pork barrel fund scam.

The Department of Justice (DOJ) has approved her and her husband Jaime’s indictment for tax evasion.

In an 18-page resolution released yesterday, the DOJ has found probable cause in the P61.18-million tax evasion complaint filed against the couple by the Bureau of Internal Revenue (BIR) in 2013.

“After preliminary investigation has been concluded, the gamut of evidence presented absolutely engendered a well-grounded belief that the crimes charged had been committed, and that respondent spouses should be held for trial for violation of Sections 254 (Attempt to Evade or Defeat Tax) and 255 (Failure to File Return, Supply Correct and Accurate Information, Pay Tax) of the National Internal Revenue Code, as amended,” read the resolution approved by Prosecutor General Claro Arellano.

“Respondent spouses Janet and Jaime Napoles’ income tax liability for taxable years 2004, 2006, 2008, 2009, 2010, 2011 and 2012 amounts to P44,711,147.48 and P16,470,402.72, respectively,” it added.

The Napoles couple denied the charges, but the investigating panel led by Assistant State Prosecutors Stewart Allan Mariano rejected their defense and instead upheld the findings of the BIR.

In its complaint, the BIR accused the Napoles couple of willful attempt to evade or defeat tax for the years 2004, 2006, and from 2008 until 2012.

The BIR found that Mrs. Napoles deliberately failed to supply correct and accurate information in her Income Tax Return for taxable years 2004, 2006, 2008 and 2009 and with willful failure to file her ITRs for taxable years 2010, 2011 and 2012.

Mr. Napoles was also charged for not supplying the correct and accurate information in his ITR for 2009 and for his failure to file his ITR for 2004, 2006, 2008, and from 2010 until 2012.

“Information gathered during investigation disclosed that spouses Napoles during the years 2004 to 2012 were able to purchase and register in their names 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 BIR said.

Acquisitions of the couple included condominium units in Cityland Mega Plaza and the Discovery Center, and parcels of land in Pangasinan and Kidapawan City.

The couple also has insurance policies with Insular Life Assurance Co., Ltd., Philippine American Life & General Insurance Co., Inc. and Philippine Axa Life Insurance Corp., and has purchased vehicles that include a Ford Lincoln Navigator, Honda Civic and Porsche Cayenne.

The BIR said data showed Mrs. Napoles’ total acquisitions summed up to 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 these were made with an income of only P195,800 in 2004, zero in 2006, P100,744 in 2008 and zero in 2009 as shown in her ITRs. She did not file any ITR from 2010 to 2012.

Mr. Napoles, on the other hand, had total acquisitions worth 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.

But the BIR found that he did not file any ITR for those years except in 2009, during which he declared nothing.

The BIR complaint was filed in 2013, but the DOJ was only able to issue the resolution yesterday due to the death late last year of Senior Assistant State Prosecutor Edna Valenzuela, who conducted the preliminary investigation on the case.

Earlier this month, the DOJ also filed a separate tax evasion case before the CTA against the Napoles couple’s daughter Jeane over alleged non-payment of taxes amounting to P17.88 million.

Garnishment vs Jinggoy upheld

Meanwhile, the Sandiganbayan has affirmed its decision ordering the garnishment of detained Sen. Jinggoy Estrada’s assets amounting to over P183 million, supposedly representing the commissions he received from the pork barrel fund scam.

In a five-page decision issued March 26 but was released only yesterday, the Sandiganbayan First Division denied the motion for reconsideration filed by the accused for lack of merit.

First Division magistrates headed by Associate Justice Roland Jurado said Estrada’s arguments, including his claim that he was not accorded due process as he was not allowed to answer the prosecution’s motion for the issuance of a writ of preliminary attachment, are not enough to take back the freeze order. – With Michael Punongbayan