CTA clears Ampatuan lawyer of P17 million tax raps

MANILA, Philippines — The Court of Tax Appeals (CTA) has acquitted defense lawyer Arnel Manaloto of P16.67-million tax evasion charges in connection with the purchase of eight properties in Davao City from his client, Andal Ampatuan Jr., the primary suspect in the 2009 Maguindanao massacre.

In a 35-page decision promulgated on Dec. 5, the tax court’s Second Division dismissed the four tax evasion cases filed by the Department of Justice (DOJ) in March 2015. 

In its ruling, penned by Associate Justice Juanito Castañeda Jr., the Second Division sided with Manaloto’s argument that the Bureau of Internal Revenue (BIR) failed to conduct a formal investigation and did not use the proper method of computing his tax liabilities prior to filing a complaint with the DOJ.

The BIR alleged that Manaloto had P12.114 million in income tax deficiency and P4.556 million in value-added tax deficiency for 2011.

The BIR said Manaloto’s declared income of P1.495 million for 2011 was undervalued by more than 37 percent, noting that he was able to purchase during that year eight parcels of land in Davao City owned by Ampatuan Jr. for P20 million.

The Philippine Center for Investigative Journalism reported in November 2012 that the purchase was done on May 19, 2011, two weeks before the Court of Appeals issued a freeze order on the assets of the Ampatuan family on June 6, 2011.