Tax court orders arrest of Claire dela Fuente

MANILA, Philippines - The Court of Tax Appeals (CTA) has issued a warrant of arrest against singer-turned-businesswoman Claire Dela Fuente for failing to pay the correct taxes owed by her bus company.

In a one-page resolution dated March 10, 2010 but made public yesterday, CTA Associate Justices Juanito Castaneda Jr., Caesar Casanova and Cielito Mindaro-Grulla ordered the immediate arrest of Dela Fuente or Clarita de Guzman in real life.

“This court finds probably cause exist for the issuance of a warrant of arrest against the accused,” the CTA said in its decision.

The Bureau of Internal Revenue (BIR) said Dela Fuente, dubbed the Karen Carpenter of the Philippines, is wanted by law for allegedly failing to pay deficiency taxes from 1997 to 2004 amounting to P417 million.

In a telephone interview with The Star, Dela Fuente said the case is already sub judice or under judgment. In the Philippines, as in other countries, it is generally inappropriate to comment on cases sub judice, the Latin term for “under judgment.”

“I cannot comment on that,” Dela Fuente said.

The BIR, which accounts for 70 percent of total government revenues, filed the case against Dela Fuente under its Run After Tax Evaders (RATE) program in her capacity as vice president and treasurer of the Philippine Corinthian Liner Corp. (PCLC), which runs The King of Kings Transport.

The King of Kings Transport operates 237 buses in Metro Manila, mostly plying the Alabang-Baclaran-Monumento route.

In a statement, BIR Deputy Commissioner for Legal and Enforcement and RATE head Gregorio Cabantac said the case is part of the intensified campaign against tax evaders in line with the ‘Enhanced RATE Program’ thrust of Internal Revenue Commissioner Joel Tan Torres to meet the agency’s 2010 collection target of P830 billion.

The BIR investigation revealed that Dela Fuente failed to file income and percentage taxes, declare its actual income and pay the corresponding taxes and register her business with the BIR from 1997 to 2004.

“Further investigation revealed that the company failed to pay the proper taxes from 2002 to 2004 based on the company’s statements of income as submitted to the Land Transportation Franchising and Regulatory Board (LTFRB),” Cabantac said.

The CTA has set the bail for Dela Fuente’s provisional liberty at P20,000.

Dela Fuente, who reached celebrity status in the 70s, is behind Filipino hits “Sayang” “Minsan-Minsan” and “Nakaw na Pag-ibig.”