BIR files tax evasion raps vs Garcia, Ligot

MANILA, Philippines –  The Bureau of Internal Revenue (BIR) has filed multimillion-peso tax evasion complaints against the persons involved in the alleged diversion of funds in the Armed Forces of the Philippines (AFP).

The bureau filed with the Department of Justice (DOJ) yesterday three separate complaints against retired Maj. Gen. Carlos Garcia and his wife Clarita; retired Lt. Gen. Jacinto Ligot and wife Erlinda Yambao-Ligot; and Ligot’s brother-in-law Edgardo Tecson Yambao.

BIR Commissioner Kim Henares said the respondents were charged for “willful attempt to evade or defeat tax and failure to file their income tax returns.”

Former AFP comptroller Garcia and his wife Clarita supposedly failed to pay and declare proper taxes in 2004. The BIR said the two had an income of P273 million in 2004 but incurred a tax deficiency of P235.8 million.

Ligot, also a former military comptroller, and his wife Erlinda also failed to declare their income of P459.6 million from 2001 to 2004.

According to the BIR, Ligot made several deposits and investments of substantial amounts, including deposits of $1.288 million and $1.6 million with Citibank.

He also purchased several properties that included parcels of land in Malaybalay, Bukidnon and Rizal province, a Paseo Parkview Tower II Condominium unit at Salcedo Village and a luxury vehicle.

His wife Erlinda also made a deposit of $200,000 with Citibank.

The Ligots also owed the government a tax deficiency of P428 million from 2002 to 2004.

The complaint against Yambao, meanwhile, stemmed from his failure to file his income tax returns for 1999 and from 2001 to 2005 despite making several deposits of substantial amounts in several banks and acquiring properties at substantial amounts.

He acquired a condominium unit for P1.41 million in 1999; deposited P14.4 million in Citibank, Metrobank and the United Overseas Bank. He also acquired several luxury vehicles and high-end properties, including an Essensa East Forbes condominium worth P25 million in 2003.

Yambao has a total deficiency of P285.7 million in income tax.

The BIR complaints filed yesterday are separate from the two pending tax evasion complaints earlier lodged by the revenue commission against the Garcia couple in 2002 and in 2003 which are still up for resolution.

DOJ Assistant Secretary Zabedin Azis said all individuals must pay their taxes for all their income regardless if the source is legitimate or not.