BIR files tax evasion charges vs Coronas

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The Coronas are charged with tax evasion worth P150.68-M

TAX EVASION. The Bureau of Internal Revenue charges former Chief Justice Renato Corona, his daughter and son in law with tax evasion. File photo by Emil Sarmiento

MANILA, Philippines – The Bureau of Internal Revenue on Thursday, August 30, filed tax evasion charges worth P150.68 million against dismissed Chief Justice Renato Corona, his daughter, Ma. Carla Beatriz C. Castillo, and son in law, Constantino T. Castillo III.

In a statement, the BIR said the criminal charges were filed with the Department of Justice. Corona was relieved from his post last May 29 following his failure to declare his bank deposits. The Senate, sitting as an impeachment court, found him guilty of culpable violation of the Constitution.

Corona was accused of violating section 254 and 255 of the National Internal Revenue Code from 2003 to 2005, 2007, 2008 and 2010.

Corona’s daughter Carla is being charged for violating section 254 of the National Internal Revenue Code or attempting to evade or defeat taxes in 2010 and violating section 255 or failing to file an income tax return for the same year.

On the other hand, Mr Castillo is being charged for violating section 254 of the National Internal Revenue Code or attempting to evade taxes in 2003 and 2009 and violating section 255 of the NIRC or failing to file a return in 2003.

A lot in the posh La Vista subdivision is under the name of the Castillo couple. Based on property records, the Corona couple bought this property in 2003 until they reportedly sold it to Carla and her husband in 2010. (Check out Corona’s properties in this map.)

The BIR said Corona did not declare all his assets in his SALN such as bank deposits and two real properties he acquired during his stint in government: a condominium unit at the Columns, along Ayala Avenue that he bought for P3.6 million in 2004 and a property in Fort Bonifacio that he bought for P9.16 million in 2005.        

Corona is a registered taxpayer of Revenue District Office No. 32 that covers Sampaloc, Sta Mesa and San Miguel, according to the BIR.

As a public official from 2002 to 2010, Corona is required to submit under oath his statement of assets, liabilities and net worth annually including that of his spouse and children under 18 years of age.

The BIR said that in his SALNs, Corona’s networth ranged between P7 million to P22 million covering 9 years in the Supreme Court — 2002 to 2010.

The BIR said that it also looked at Corona’s bank records and compared it with his net worth. “The BIR also discovered a substantial disparity between the acquisition cost of the properties declared in his SALNs with that in the certificates authorizing registrations,” according to the statement.

The statement explained: “The BIR computed Corona’s deficiency income tax liability at P120.5 million for the nine-year period. The BIR computed his tax liability using the expenditure method which is based on the theory that if a taxpayer’s expenditure in a given year exceeds his reported income, the excess spending represents unreported income.”

According to the BIR, Mr. Castillo, a doctor, registered with the BIR in 1998 but filed his income tax returns only from 2005 to 2009. Mr. Castillo declared a total income of only P1.933 million for the five-year period. His wife, on the other hand, only filed income tax returns for only 2008 and 2009 where she declared a total income of only P228,040.

“While the Castillo couple’s declared income amounted to less than P3 million, they were able to acquire three properties: a P10.5-million property in Project 3, Quezon City, a P15-million commercial property in Kalayaan Avenue, Quezon City and an P18-million mansion in La Vista, Quezon City,” the BIR said.

 “Using the expenditure method, the BIR computed the deficiency income tax liability of Mr. Castillo at P20.25 million. The deficiency income tax liability of Corona’s daughter, meanwhile, amounts to P9.93 million,” the statement added. – Rappler.com

 

 

 

 

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