DOJ forms panel to probe P73-M tax evasion raps vs Mikey, wife

MANILA, Philippines - The Department of Justice has created a panel of three prosecutors to handle the P73.85-million tax evasion charges against Ang Galing Pinoy Rep. Juan Miguel “Mikey” Arroyo and his wife Angela.

Justice Secretary Leila de Lima, in Department Order No. 292 issued last week, named Senior State Prosecutor Lagrimas Agaran as chair of the panel. Lagrimas used to head DOJ’s task force on child abuse cases.

Assistant State Prosecutors Mederlyn Mangalindan and Ma. Cristina Barot are panel members.

De Lima ordered the panel to conduct a preliminary investigation into the complaint against the couple filed by the Bureau of Internal Revenue (BIR) and “if the evidence so warrants, to file the corresponding information and handle its active prosecution before the proper court.”

De Lima earlier assured the Arroyo couple that they would be accorded due process and that the complaint would be resolved expeditiously just like any ordinary case in the DOJ. Mikey is the eldest son of former President and now Pampanga congresswoman Gloria Macapagal-Arroyo.

Mikey’s lawyer Ruy Rondain said the complaint was filed with the DOJ last April 7, or just two days after his client’s receipt of an audit notice.

In its complaint, the BIR accused the couple of wrongful declaration of taxable income and non-filing of income tax returns (ITR), which are punishable under section 254 and 255 of the National Internal Revenue Code.

It was learned that the lawmaker only paid BIR P2.4 million, P1.7 million and P376,000 in taxes for the years 2004, 2006 and 2007, respectively, when he and his wife bought several properties worth millions from 2004 to 2009, including residential houses in the US, in Lubao, Pampanga and in La Vista Subdivision in Quezon City.

The BIR patterned its investigation into the Arroyo couple’s case after a method used by US authorities against gangster Al Capone, through which the tax agency found “substantial under-declaration of income by over 30 percent in those three years.”

Rep. Arroyo also supposedly did not file ITR in the taxable years 2005, 2008 and 2009, while his wife also did not file any ITR from 2003 to 2009.

If found guilty, the couple could face imprisonment of up to four year years and fine of at least P30,000 for each count of under-declaration of taxes.

They also face imprisonment of up to 10 years and P10,000 fine for each count of non-filing of ITR.  

Meanwhile, former Solicitor General Frank Chavez said he would file a plunder case against Mrs. Arroyo at 11 a.m. today.   – With Paolo Romero