Mall execs indicted for ‘tax fraud’

CEBU, Philippines - The fiscal’s office has found probable cause to formally file criminal charges against representatives of SM Prime Holdings for alleged tax fraud, as accused by Cebu City Mayor Tomas Osmeña.

In a March 15 order, City Prosecutor Liceria Lofranco-Rabillas asked SM to submit controverting evidence on the criminal complaint filed by Osmeña.

"I hereby certify that on the basis of the sworn statement and other documents submitted before me there exists a reasonable ground to believe that the crime charge has been committed and that the accused is probably guilty thereof," Rabillas said.

Last year, Osmeña filed a criminal complaint against officials of SM on the purchase of a lot at the South Road Properties.

Osmeña said SM, through Henry Sy Jr., as chairman of the board; Jose Cuisia Jr., as vice-chairman of the board; Hans Sy, as executive director; Imelda Lim as its authorized representative; and any and all of its pertinent officers, representatives and employees should be held liable for “other deceits’ under Article 318 of the Revised Penal Code.

Rabillas accused Lim, SM's senior Tax manager, for committing "other deceits’ under Art 318 paragraph of the Revised Penal Code.

Osmeña alleged that SM only paid P14 million as assessed tax when the total amount, including the undeclared parts of the buildings, should be P37.6 million this year.

He said there's a difference of P23.5 million, an amount the City of Cebu was not able to collect, to its "grave prejudice."

Municipal Trial Court Branch 1 Presiding Judge Monalila Tecson has scheduled the arraignment of the case on May 23.

Tecson also asked SM to submit its counter-affidavit.

"Should accused fail to appear and submit his/her/their counter-affidavit within the above stated period, this court will issue a warrant for his/her/their arrest, if it finds that on the basis of the Information and the affidavit of the complainant/s, there exist a probable cause," read the March 21 order, a copy of which was received by the City Legal Office last March 22.

With this, SM filed its motion last March 28 to suspend proceedings in view of its filing of a petition for review with the Regional State Prosecutor.

"It is respectfully prayed that this Honorable court issue an order suspending the proceedings, including the filing of counter-affidavit, in the instant case for the maximum period allowed by the Rules of Court and existing jurisprudence," SM said.

It said it was left with no choice but to file a petition for review with the Regional State Prosecutor.  (FREEMAN)