Tax evasion charges filed vs ex-chief justice
Posted on August 30, 2012 10:28:19 PM
[ BusinessWorld Online ]
BY SIEGFRID O. ALEGADO, Reporter
FORMER CHIEF JUSTICE Renato C. Corona,
his daughter and son-in-law were yesterday charged by the Bureau of Internal
Revenue (BIR) with tax evasion totaling over ₱150 million.
Internal Revenue Commissioner Kim S.
Jacinto-Henares told a briefing that Mr. Corona, who was ousted more than two
months ago, was charged before the Justice department "for willful attempt
to evade or defeat tax and for deliberate failure to file… income tax
returns" for the years 2003-2005, 2007-2008 and 2010.
The same evidence -- Statement of
Assets, Liabilities and Net Worth (SALN), deeds of sale, and bank accounts --
presented during Mr. Corona’s five-month impeachment trial were indicated by
the BIR in its charge sheet.
Mr. Corona on May 29 was found guilty
of betraying public trust for failing to declare his true SALN.
His tax deficiency has been set at
₱120.5 million, the BIR said in a statement.
The amount was arrived at "by
comparing the increase in his net worth with his reported taxable income over
time," it further noted
Also facing tax evasion charges were
Mr. Corona’s daughter Ma. Carla Beatriz C. Castillo and husband Constantino T.
Castillo III with alleged income tax liabilities of ₱20.24 million and ₱9.93
million, respectively.
The Castillos were dragged into the
impeachment trial after the bureau found out that they bought certain
properties named after Mr. Corona.
Mr. Corona allegedly earned more than
what he declared, Ms. Henares said, noting the discrepancy in his declared
income per alphalist (₱26.45 million) and true net worth (₱161.15 million). An
alphalist indicates the list of employees, their compensation and taxes
withheld.
A taxpayer is not required to file an
income tax return (ITR) for purely compensation income under the BIR’s
substituted scheme, but other income aside from compensation should be
declared, the revenue agency said.
A BIR investigation further showed
that Mr. Corona allegedly undervalued three of his properties and underdeclared
cash by ₱17.3 million and ₱134.44 million, respectively, as well as failed to
declare two other properties valued at ₱12.75 million.
The BIR also said Mr. Castillo
supposedly "failed to file his ITR for taxable year 2003… and deliberately
understated his ITR in the year 2009," while Ms. Castillo "failed to
file an… ITR for the taxable year 2010."
The cases were filed as a result of
the BIR’s Run After Tax Evaders program.
Mr. Corona, meanwhile, said he and his
family "have long expected" the filing of charges, as they "have
been exchanging communications with the BIR and have complied with their
deadlines."
"As a man of law, I will abide by
the processes… We will respond accordingly…," he said in a text message to
reporters, adding that they are awaiting the service of subpoena and complaint.
"By the grace of God, we will
overcome. This too will come to pass," Mr. Corona noted.
Mr. Corona was an appointee of then
president now Pampanga Rep. Gloria Macapagal-Arroyo, but his assumption to the
highest judicial post was rocked by controversy as it was done during an
election ban on appointments. The appointment was, however, upheld by the
Supreme Court which ruled that its justices are exempt from the constitutional
restriction. He was impeached by the House of Representatives in December last
year.
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