BIR files tax evasion raps vs Jeane Napoles

Published October 10, 2013 11:09am

(Updated 8:46 p.m.) - The Bureau of Internal Revenue (BIR) on Thursday filed tax evasion raps against Jeane Catherine Napoles, daughter of alleged pork barrel scam mastermind Janet Lim-Napoles, for failure to pay taxes despite her ownership of multi-million-peso properties in the US and the Philippines.

According to the BIR, Jeane was able to acquire real estate and register them in her name in 2011 and 2012, but had no declared income during those years.

Among these properties are a condominium unit in Los Angeles, California worth P54.73 million, and her share in a farm lot in Bayambang, Pangasinan worth P1.49 million.

“Wala siyang filed na (income tax) return so meron siyang income na undeclared. That's why may tax evasion. Hindi ka naman pwedeng magkaroon ng pera na wala ka namang kinikita,” BIR Commissioner Kim Henares told reporters.

Henares said Jeane did not file income tax returns and pay taxes for 2011 and 2012 in violation of the National Internal Revenue Code of 1997.

Jeane's tax liability stood at P32.06 million, Henares said, as reported by GMA News' Lia Mañalac-del Castillo.

This is broken down into P31.38 million in 2011 and P0.68 million in 2012.

Henares said Napoles also did not file any donor's tax to prove that the properties, gifts, bequests or devices were given or donated to her.

“Either na may nagbigay sa 'yo so dapat may donor's tax. Kung may minana ka, dapat may estate tax. Kung wala kaming record na may dinonate sa 'yo, wala kaming record na minana mo, most probably kinita mo 'yan na hindi mo dineklara kaya may tax evasion ka. Wala siyang donor's tax na binayaran o any donation to her,” the BIR chief said.

She further said that the BIR can ask the help of the US government, where Napoles is allegedly staying, for more information.

“Any country na may double taxation treaty ang BIR, pwede tayong humingi ng tulong at information sa kanila. At sila, pwedeng humingi ng tulong at information sa atin,” she said.

Henares said the BIR is also investigating the corporations linked to Janet Lim-Napoles, who is currently detained at Fort Sto. Domingo in Sta. Rosa in Laguna over a serious illegal detention case.

“Iniimbestigahan din 'yung korporasyon, sino ang may ari ng korporasyon. Kailangan meron din silang income. Kung wala silang nirereport na income, naka-invest sila sa korporasyon (kaya) may problema rin sila,” Henares said.

For her part, Justice Secretary Leila De Lima said a freeze order cannot be issued this time to stop the properties from being sold.

"Pwede pa namang habulin ang mga 'yun. But we have to make sure by what mechanisms pwedeng ihabol ang ganyang properties," De Lima said in a "24 Oras" report.

"The theory is that these are proceeds of the crime of this large-scale corruption," she added.

Dummies not off the hook

She said they are also looking into the assets of other people whose names were listed as owners of properties suspected to be owned by Napoles.

"Tintingnan namin ang mga taong nakapangalan sa kanila (ang properties) if they have the capacity to purchase. If they don’t have, sila maiimbestigahan. Maaaring may kaso sila, maaaring wala pero iimbestigahan sila," she said.

She said these persons need to show a notarized deed of trust which will prove that the property was not theirs.

"Kung may deed of trust, nakadeklara 'yan na hindi akin. Naka-notarize 'yan. Sinasabi mo lang na I am just holding this for somebody. Hindi 'yung nahuli ka na, saka mo sasabihin na hindi sa 'yo," said Henares.

"Ang moral lesson dito, 'wag kayo magpapagamit ng pangalan niyo nang ganyan-ganyan lang. 'Pag pinapagamit ang pangalan niyo at nagkagulo, siyempre iimbestigahan kung sino nakarehistro. Titingnan kung may kakayahan kayo bumili ng property. Hindi ho ganun kasimple magpahiram ng pangalan kasi may kasamang responsibilidad 'yan," she added.

She said the agency is also investigating other Napoles children.

"Oho, tuluy-tuloy naman ang imbestigasyon," she said.

In a press statement, BIR said it used the expenditure method of investigation where the unreported income of Jeane was established by a comparison made between the amount of money she spent in buying the aforementioned properties and her unreported income.

It said the expenditure method of tax investigation is based on the theory that if the subject taxpayer’s expenditures during a given year exceed his reported income, and the source of the funds used to make the expenditures is unexplained, such expenditures represent unreported income.

“Thus, the difference between the aggregate yearly expenditure of (Jeane) Napoles for taxable years 2011 and 2012 and total amount of unreported income for the same years constituted a substantial under-declaration of more than thirty percent (30%), and such unreported income is considered as prima facie evidence of her fraudulent scheme to defeat payment of taxes,” it said.

Last month, the revenue collecting agency also filed a P61-million tax evasion complaint against Napoles and her husband Jaime.

Napoles has a tax liability of P44.68 million, while her husband allegedly owes the government P16.43 million in taxes.

Janet and Jaime were charged with willful attempt to evade paying taxes for taxable years 2004, 2006, 2008, 2009, 2010, 2011, and 2012.

Lavish lifestyle

Jeane became the subject of controversy after photos of her lavish lifestyle abroad circulated on the internet.

Netizens were outraged upon seeing Jeane's photos of her expensive belongings, despite her mother Janet's assertion that they grew rich from coal mining in Indonesia, and that their funds came from legitimate businesses.

The BIR has stepped into the picture, investigating the Napoles family's properties. In an ANC interview, BIR Chief Kim Henares stated that there was nothing wrong with displaying one's wealth, so long as one pays the corresponding taxes. She confirmed that someone came forward with photos and information on the Napoles family.

The scandal first leaked in July, four months after the NBI rescued kidnap victim Benhur K. Luy, a distant relative and personal assistant of Janet Lim-Napoles, from a condominium unit in Bonifacio Global City.

Jeane allegedly owns a unit worth P80 million at the Ritz-Carlton Residences in Los Angeles.

Her Tumblr account revealed that the younger Napoles had traveled to Paris, London, and Los Angeles.

Her LinkedIn account lists her as having been President of the Honor Roll Society at her college, the Fashion Institute of Design & Merchandising in LA, where she was an International Manufacturing & Product Development major and graduated magna cum laude last year, according to her mother.

The tuition at FIDM differs for each major. For an IMPD major such as Jeane, the tuition would have cost around $42,405 inclusive of two study tours to Asia and Europe.

According to her Tumblr account, midway in her studies at FIDM, Napoles lived in the penthouse suite of 1010 Wilshire in L.A. before moving to the Ritz-Carlton. – with a report from Amanda Fernandez/KG/RSJ/KBK, GMA News

Tags: jeanenapoles, napoles, bureauofinternalrevenue, taxevasion, bantaykaban