WHILE THE HOUSE of Representatives Justice Committee played extreme caution by keeping its hands off on the box of documents, the agency from where the supposed bank records is keen on pursuing a closer look into the businesses reportedly owned by Vice President Sara Duterte and husband Maneses Carpio.
In a press statement, the Bureau of Internal Revenue (BIR) Commissioner Charlito Mendoza ordered the issuance of Letters of Authority (LOAs) to audit the beleaguered couple and at least nine businesses related to them.
Mendoza particularly cited urgency to “to examine the taxpayer’s books of accounts and other accounting records.”
Letter Of Audit
The BIR maintained that such an action follows its “careful determination that probable cause exists to warrant a formal audit investigation of the subject taxpayers.”
The Commissioner explained that the LOA is the legal instrument used by the agency to initiate formal tax audits — “It is not a conclusion of liability, but it is a necessary step in determining the correct taxes due.”
Accountability begins with the consistent application of the law. Where there is a basis to investigate, the BIR will do so… And if evidence of tax violations exists, it is our duty to pursue the appropriate civil, administrative or criminal remedies,” he added.
The tax audit would cover third party information and data from publicly-available and official sources including the Office of the Ombudsman on SALNs and those of the Anti Money Laundering Council, which were all bared during the House impeachment hearings.
Disparity In SALN
Duterte’s Statement of Assets, Liabilities and Net Worth (SALN) indicated no petty cash or bank deposits since 2019 despite declaring liquid assets.
Meanwhile, the AMLC reported that banks had flagged more than 33 suspicious transactions and 630 covered transactions amounting to P6.7 billion involving Duterte and her husband, the Inquirer reported.
The AMLC also recorded a total of P3.9 billion across 417 transactions from 2005 to 2026.
Former Sen. Trillanes who testified in the confirmatory hearings of the House was able to validate all his records of spurious transactions, donations and ill-gotten wealth that the Dutertes received from drug lords and operators of illegal POGOs.
Sara’s Businesses
By her own admission, VP Sara in previous press conferences took a swipe at the administration’s sweeping claim into the “surge of wealth” that was declared in her SALN.
“Wala ba akong mga negosyo?” the vice president was quoted as saying when asked to comment over jabs by politicians known as administration allies.
With the issuance of LOAs, BIR revenue officers are authorized to examine the taxpayers’ books of accounts and other financial records.
The companies to be audited are as follows: Carpio Lawyers, Zelta Matiem Salon, City Hall King Chow Foods Corp., Davao Bounty Times Foods Corp., Madayaw Fisheries Inc., Davao Emerging Taipans Corp., Amianan Shores Inc., Cale88 Foods Corp., and Geometry Security and Investigation Agency Inc.
No Conclusion Yet
“It is not a conclusion of liability, but it is a necessary step in determining the correct taxes due. Accountability begins with the consistent application of the law,” Mendoza stressed.
“Where there is a basis to investigate, the BIR will do so. And if evidence of tax violations exists, it is our duty to pursue the appropriate civil, administrative, or criminal remedies,” he further said.
“The end objective of this lawful exercise is to collect the correct taxes due to the government. This will be a rules-based approach in determining the truth. Rights will be accorded to the audited entities,” the BIR chief added
The BIR assured that audits will be fully compliant with the run after tax evaders (RATE) protocols, the primary enforcement program of the bureau for tax evasion and tax fraud.