Corona’s daughter to face tax evasion charges

MANILA, Philippines – The Department of Justice (DOJ) upheld the criminal complaints filed by the Bureau of Internal Revenue (BIR) against the daughter of impeached Chief Justice Renato Corona.

In a 16-page resolution dated May 30 but released Thursday, June 5, the DOJ panel of prosecutors approved the filing of charges against Ma Carla Beatrice Castillo for willful attempt to evade tax and failure to file an income tax return (ITR).

The DOJ panel of prosecutors found probable cause to indict the female Castillo, saying in its resolution that “an underdeclaration of more than 30% constitutes prima facie evidence of fraud.”

According to the BIR investigation, Castillo bought a property for P18 million ($411,005*) in 2010 located at the La Vista Subdivision in Quezon City. This, despite not having filed an ITR for taxable year 2010.

Defense

In her defense, Castillo said she worked as a physical therapist in the United States from 1996 to 2002. She claimed she was able to save substantially from her income during those years, which enabled her to buy from her mother the 1,200-square-meter La Vista property.

Castillo bought the property together with her husband Constantino Castillo III, who also faces tax evasion charges over undeclared assets valued at more than P20 million.

The DOJ investigating panel, however, said Castillo’s defense can be better tackled in court. The panel resolved that there is sufficient evidence to charge her as it is. 

“At any rate, we find that the defenses raised by the respondent are matters best ventilated during the trial of the instant case. To be sure, the prosecution should be given sufficient opportunity to dispute the excuses made,” the DOJ resolution read. 

Expenditure method

In coming up with total tax deficiencies of Castillo, the DOJ panel of prosecutors justified the BIR’s use of the expenditure method. As in the case of her husband, Castillo’s property purchases were assessed relative to her income.

“… the expenditure method is based on the theory that if the subject taxpayer’s expenditures during a given year exceed his reported income, and the source of funds used to make the expenditures is unexplained, it may be inferred that such expenditure represent unreported income,” the resolution read.

The investigating panel in Castillo’s case is composed of Senior Assistant State Prosecutor Edna Valenzuela, Assistant State Prosecutor Mark Roland Estepa, and Prosecution Attorney Jayvee Laurence Bandong.

Father’s charges

Castillo’s father, dismissed Chief Justice Corona, also faces 6 counts of willful attempt to evade tax and 6 counts of failure to file his income tax return before the Court of Tax Appeals.

Corona has been indicted for failing to pay P120.5 million in taxes and failing to file his income tax return for 6 years – 2003, 2004, 2005, 2007, 2008 and 2010. The subject income is supposedly beyond his compensation as a Supreme Court (SC) justice.

Corona was dismissed in 2012, the year senators who declared him guilty of violating the Constitution supposedly received millions of pesos through the Aquino administration’s spending program – the Disbursement Acceleration Program (DAP).

The DAP is now the subject of deliberations by SC justices, after its constitutionality was questioned before the High Court. – Rappler.com

*$1 = P43.80