DOJ subpoenas Mikey, wife

MANILA, Philippines - Former presidential son Rep. Juan Miguel “Mikey” Arroyo and his wife Angela were ordered to appear before the Department of Justice (DOJ) to answer charges in a P73.85-million tax evasion case filed by the Bureau of Internal Revenue (BIR) last April 7.

Prosecutor General Claro Arellano told The STAR that the DOJ has already sent the subpoena to the Arroyo couple.

Arroyo, of the Ang Galing Pinoy party-list group, and his wife were ordered to appear before the DOJ at 2 p.m. on May 12 and 26.

They were also told to submit their counter-affidavits and supporting documents.

Arroyo is reportedly in the United States with his mother, former President Gloria Macapagal-Arroyo

A three-member panel of prosecutors tasked to handle the preliminary investigation of the case issued the subpoena, dated April 28.

The DOJ panel is composed of Senior Assistant State Prosecutor Lagrimas Agaran, Assistant State Prosecutor Ma. Christina Barot, and Assistant State Prosecutor Mederlyn Presa-Mangalindan.

Last April 7, BIR Commissioner Kim Henares said her office filed the complaint after gathering ample evidence, belying the claim of Arroyo that the case was part of a purported battery of harassment suits against the former administration.

Arroyo maintained that he has been faithfully paying the correct taxes and accused the BIR of being out to “crush” him.

In its complaint, the BIR accused the couple of wrongful declaration of taxable income and non-filing of income tax returns, acts punishable under Sections 254 and 255 of the National Internal Revenue Code.

The BIR said the lawmaker only paid 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 United States, in Lubao, Pampanga and at La Vista Subdivision in Quezon City.

The BIR patterned its investigation of the Arroyo couple after the method used by US authorities against gangster Al Capone and found “substantial underdeclaration of income by over 30 percent” in those three years.

“Under the Tax Code (NIRC), underdeclaration of taxable income of more than 30 percent is considered a prima facie evidence of fraudulent return,” Henares said.

Arroyo also supposedly did not file income tax returns for the taxable years 2005, 2008 and 2009, while his wife also did not file tax returns from 2003 to 2009.

Henares said the act of non-filing is evident of their alleged fraudulent scheme to defeat payment of taxes.

If found guilty, the couple could face imprisonment of up to four years and fine of at least P30,000 for each count of underdeclaration of taxes, and imprisonment of up to 10 years and P10,000 fine for each count of non-filing of income tax return.

Arroyo described the charges against him as “pure political harassment.” He said he was given 10 days from April 5 to answer questions on his statement of assets and liabilities and net worth (SALN) but Henares announced to the media the filing of the tax evasion complaint against him two days later.

“My conscience is clear. I pay my taxes properly. I don’t know where these (charges) are coming from. I have nothing against any government looking into our tax payments or running after those who have tax issues,” Arroyo said.

“All that I ask is (for them) to observe due process but if that’s how they do it, they’re really out to crush me,” he added.

He said that after receiving the notice from the BIR on April 5 asking him to explain the alleged discrepancy between his known assets and tax payments, he immediately consulted his lawyer Ruy Rondain.