DOJ issues watchlist order vs Mikey, wife

MANILA, Philippines - Justice Secretary Leila de Lima today issued a watchlist order against Ang Galing Pinoy party-list Rep. Juan Miguel Arroyo and his wife, Angela, who have been both ordered charged for alleged tax evasion.

De Lima ordered the inclusion of Arroyo and his wife in the watchlist order after a Department of Justice (DOJ) panel issued a resolution, finding probable cause to indict the couple for several counts of tax evasion.

The watchlist order prevents the couple from leaving the country without permission from the DOJ.

The resolution was signed by Senior Assistant State Prosecutor Lagrimas Agaran, Assistant State Prosecutor Ma. Cristina Montera-Barot and Assistant State Prosecutor Mederlyn Mangalindan and endorsed by Senior Deputy State Prosecutor Miguel Gudio Jr., chairman of the DOJ Task Force on Tax Fraud Cases.

Prosecutor General Claro Arellano approved the filing of seven counts of tax evasion against Angela for her failure to file income tax returns from 2003 to 2009.

Arroyo , on the other hand, will be facing three counts of violation of Section 255 of the National Internal Revenue Code and another three counts for failing to supply accurate information in his income tax returns from 2004 to 2006.              

Last April, the Bureau of Internal Revenue (BIR) charged the Arroyos before the DOJ for “willfully, and with intent to evade paying the correct amount of taxes due to the government, substantially underdeclared their income for taxable years 2004, 2006 and 2007.”

The DOJ added that Arroyo also failed to file tax returns for the years 2005, 2008 and 2009, with a deficiency in the total amount of P73.85 million.

This is broken down as follows: P58,636,509.01 for 2004; P252,500 for 2005; P7,953,308 for 2006; P4,473,271.95 for 2007; P1,453,500.02 for 2008; and P1,082,899.63 for 2009.

The complaint was filed after the BIR discovered the non-filing of income tax returns by Arroyo and his wife based on the information and documents gathered from the Office of the Ombudsman for Luzon and the Provincial Human Resource Management Office of Pampanga.

Based on the spouses’ Statement of Assets, Liabilities and Net Worth (SALN), their net worth for the period 2004 to 2009 considerably increased as indicated by the acquisition of several real and personal properties, including residential houses and lots in Lubao, Pampanga, La Vista Subdivision in Quezon City and in the United States, motor vehicles, stock shares and other personal effects worth several million pesos.

Using the Net Worth Method (NWM) of tax investigation, the BIR found out that there has been underdeclaration of the total amount of income by more than 30 percent, constituting prima facie evidence of a fraudulent scheme to defeat payment of taxes.

Arroyo had denied the BIR’s allegation. -- with Sandy Araneta, The Philippine Star