Ligot, wife deny P428-M tax evasion charges

MANILA, Philippines - Former Armed Forces comptroller Jacinto Ligot and his wife Erlinda yesterday denied before the Department of Justice (DOJ) charges of the Bureau of Internal Revenue (BIR) that they evaded payment of P428 million in taxes.

In a 27-page joint counter affidavit submitted during a preliminary investigation hearing, the controversial couple asked the DOJ to dismiss the complaint filed by the BIR, which they claimed was “based on imaginary bank deposits and properties in the names of other people.”

Through lawyer Rafael Zialcita, the Ligots denied charges of non-payment of tax and five counts of non-filing of income tax returns (ITRs) for taxable years 2001 to 2004 filed against them by the bureau last March 10.

Ligot belied allegations that he evaded payment of taxes for taxable year 2001 through non-filing of ITR, claiming that he filed his ITR that year through the AFP. But he failed to present the document to the DOJ, saying he lost his copy.

His wife, on the other hand, admitted the allegation that she did not file ITR from 2001 to 2004. But she explained that there was nothing wrong with it since she was unemployed during those years.

She said she only had a small income from other sources during those years.

“As far as Mrs. Ligot is concerned, she did not file because she was not gaining any income. For Mr. Ligot, he did file his ITRs and if I’m not mistaken, the AFP was the one responsible for that,” Zialcita told reporters.

The couple claimed that the BIR submitted no documentary proof that the properties it cited in its complaint were really registered under their names.

They alleged that the bureau also wrongfully applied the expenditure method: “The complainant failed to segregate the amounts attributed to the bank accounts and the amounts allegedly used to purchase the alleged properties.”

The Ligots also alleged that the BIR had violated their right to due process, saying the BIR did not accord them the process from the informal conference to the final assessment phase when it filed the complaint in DOJ.

“The complainant did not issue a formal assessment against us which is required before the filing of a criminal complaint for tax evasion. Considering the haste of the complainant (BIR) in wanting to file the instant complaint, the BIR skipped the issuance of the required and necessary formal assessment,” the couple argued.

The respondents subscribed to their counter-affidavits before investigating Senior State Prosecutor Stewart Mariano. They immediately left the DOJ without talking to media, as they did in the previous hearing.

But probably for the first time, Mrs. Ligot did not complain of hypertension. During a hearing at the DOJ last April 6, her blood pressure allegedly shot up to 160/100.

BIR: Ligots are liable

In its complaint, the BIR accused the Ligots of eight counts of various tax charges following their recent disclosures before the Senate inquiry on corruption in the Armed Forces as well as records from the anti-graft court.

According to BIR Commissioner Kim Henares, the Ligots are liable for non-payment of tax and five counts of non-filing of income tax returns (ITRs) for taxable years 2001 to 2004.

Last March 10, the BIR filed the complaint accusing the Ligots of evading their duties to pay taxes from 2001 to 2004, which gave them some P428 million in aggregate tax liabilities.

The BIR said the couple allegedly committed “eight counts of willful attempt to evade or defeat tax and five counts for willful failure to file their income tax returns covering the taxable years 2001 to 2004.”

It noted Ligot’s millions-worth of bank deposits and his purchase of properties in Rizal province, a condominium unit in Makati City, and a sports utility vehicle.

While he was a military comptroller, his wife Erlinda allegedly made “several bank deposits,” including a $200,000 bank transaction.

“She also purchased several properties that included a Paseo Parkview Tower II condominium unit at Salcedo Village in Makati City, a $322,181 real property at No. 1240 Cabernet Circle, Anaheim, California, USA, and a $599,500 house and lot at 7102 Stanton Avenue, Buena Park, California,” said the BIR complaint.

The Buena Park property was already forfeited by the US government, upon the request of the Philippines through the Mutual Legal Assistance Treaty (MLAT). The property was listed under the name of Erlinda Ligot.