DOJ OKs indictment of Napoles daughter for tax evasion

MANILA, Philippines - A daughter of Janet Lim-Napoles will be charged before the Court of Tax Appeals with two counts of attempting to evade taxes and failure to file income tax returns.

Department of Justice (DOJ) prosecutors found probable cause to indict 23-year-old Jeane Catherine Napoles of allegations that she had accumulated over P17.88 million in tax liabilities in 2011 and 2012.

In October last year, the Bureau of Internal Revenue (BIR) accused her of attempting to evade taxes and failure to file income tax returns in violation of Sections 254 and 255 of the National Internal Revenue Code.

In a resolution, Senior Assistant State Prosecutor Edna Valenzuela said: “As gathered from the evidence submitted, respondent Jeane Catherine L. Napoles was able to acquire properties of expensive value directly under her name, but she kept mum about it and did not report any income despite her being able to buy and fully pay the said properties as borne out by documents.” Prosecutor General Claro Arellano had approved the resolution.

The DOJ said the BIR was able to present evidence to back up their allegations that Jeane Napoles evaded the payment of taxes on her various acquisitions, including a condominium unit in California and farm lots in Pangasinan.

Preliminary investigation showed that she willfully attempted to evade or defeat her tax liability.

“Respondent is a registered taxpayer under Tax Identification No. 267-949-000 but for two consecutive taxable years of 2011 and 2012, she willfully did not file any tax return,” read the DOJ resolution.

“Consequently, a prima facie evidence of a fraudulent scheme in order to evade or defeat payment of taxes exists. Likewise, a prima facie evidence of an omission or failure on the part of respondent Jeane Catherine L. Napoles to file the requisite income tax return as mandated by the Tax Code exist.” 

The DOJ also dismissed Jeane Napoles’ arguments that the properties registered under her name were actually bought and paid for by her parents, and that she merely held them in trust.

The DOJ saw no clear and convincing evidence to prove that claim, although she presented a joint affidavit from her parents attesting to it.

“Aside from being biased, (it) is wanting with clear and convincing evidence to show that spouses Jaime and Janet Napoles are the real buyers and true owners of the properties in question, and that respondent, Jeane Catherine L. Napoles, is merely a trustee,” read the DOJ resolution.

The DOJ said Jeane Napoles failed to show receipts or proof of payments to back up her contention that her parents had purchased the properties.

She was unable to show that she used her parents’ money for the purchase, the DOJ added.

The DOJ said Jeane Napoles failed to present documents as to how the condominium was transferred to her name from those of her parents.’ 

“Respondent’s claim without documentary evidence being submitted to substantiate her assertions, remains empty or hollow,” read the DOJ resolution.

“It is of judicial notice that in cases of sale, conveyances or transfer of real estate properties worth millions of pesos, the transaction is normally done not through verbal means but through documents.” 

The BIR said the condominium unit in Los Angeles, California was acquired for $1,280,000 (P54.73 million) in July 2011 and the two farm lots in Pangasinan were purchased in January 2012 for P1,493,333.33.

It assessed the tax liabilities of Jeane Napoles at P17,461,038.40 for the condominium and P486,866.67 for the farm lots – a total of P17.88 million.

Counting interest and other charges, the total liability reached P32 million.

Witness

Another whistle-blower corroborated yesterday Benhur Luy’s testimony against Sen. Ramon Revilla Jr., his former chief of staff Richard Cambe and Janet Lim-Napoles.

Prosecutors presented Merlina Suñas to the anti-graft court’s First Division to testify on how alleged rebates of commissions were collected from JLN Corp. where she also used to work.

“The money comes from a vault assigned to Benhur,” she said. – With Michael Punongbayan