DOJ summons Yap over tax evasion raps

The Department of Justice (DOJ) has ordered Agriculture Secretary Arthur Yap and his father, Domingo, to appear next month before prosecutors in connection with the tax evasion case filed against him by the Bureau of Internal Revenue last week.

State Prosecutor Sebastian Capuno Jr. said yesterday he issued the subpoena ordering father and son to appear before the DOJ on July 5 and 7, and to submit their counter-affidavits to the BIR’s charges.

Capuno said the subpoena was sent to the office of the DHY Realty and Development Corp. on Makati Avenue in Makati City.

The DA chief earlier said the alleged tax liabilities were DHY Realty’s and not his.

"I have long divested myself of any ownership, interest or position in this family corporation and our family-owned business. I did this when I joined the government, and this is adequately reflected in our documents submitted to the government agencies showing my complete divestment from these interests," he said.

In a complaint filed before the DOJ, the BIR said DHY Realty and Development Inc. failed to file withholding taxes for the years 1997 to 1999.

The family also failed to pay correct documentary stamps on the sale of a property, the BIR said.

The complaints stemmed from the company’s acquisition of a 3,176-square meter property in Pasig City from one Carlota Mendoza for P20.6 million in 1997 under a conditional deed of sale.

The two parties signed three more undervalued absolute deeds of sale for the same property, the BIR said.

The first was in January 1997 for P12.7 million, the second in November 1997 for P14.3 million, and the third in September 1998 for P1 million.

The additional deeds of absolute sale were signed even after DHY Realty had satisfied the provisions of the conditional deed of sale, the BIR said.

The bureau said Domingo Yap signed the conditional deed of sale while his son signed all three undervalued deeds of sale.

Yap said he welcomes the chance to appear before the DOJ to defend themselves and clear their names.

"We are gratified that we have been given an opportunity to present our side in the proper forum and we are confident that we will be fully vindicated of any fault in this matter," the DA chief said.

He pledged full cooperation in the probe while thanking those who called and sent messages of support during "these trying times."