Quantcast
Latest Stories

Ampatuan lawyer faces tax charge


The Department of Justice (DOJ) has recommended the filing of tax evasion charges against one of the lawyers of Andal Ampatuan Jr., the main suspect in the Maguindanao massacre, for underdeclaring his taxable income for 2011.

Prosecutor General Claro Arellano recommended the filing of charges against lawyer Arnel Cortez Manoloto after it was discovered that he did not declare his purchase for P20 million of eight pieces of property belonging to Ampatuan in January 2011—just two weeks before the court ordered a freeze order on all assets owned by all those accused in the massacre in 2009 of 58 people, including 32 journalists in Maguindanao.

Also charged was Manoloto’s accountant, Erwin Carreon, who had certified that all the information on Manoloto’s 2011 tax declaration was “true and fair.”

Cortez will be charged of violating the National Internal Revenue Code, specifically Sections 254 (attempt to evade or defeat tax), 255 (failure to supply correct and accurate information in his income tax returns [ITRs] and failure to file value-added tax [VAT] returns for taxable year 2011) and 275 (failure to register for VAT).

BIR complaint

Carreon, on the hand, will be charged of violating Section 257 or making false entries, records or reports, or using falsified or false accountable forms.

A complaint filed by the Bureau of Internal Revenue (BIR) against Manoloto and Carreon before the DOJ was initially dismissed by Assistant State Prosecutor Ma. Cristina Barot who conducted a preliminary investigation.

But Barot’s dismissal was disapproved by Arellano who issued the 11-page review resolution recommending the charges against Manoloto and Carreon.

The BIR filed the tax evasion case against Manoloto in November last year.  Internal Revenue chief Kim Henares said the BIR began probing Manoloto after a Philippine Center for Investigative Journalism report exposed how Ampatuan transferred ownership of eight properties in Davao City to Manoloto just two weeks before the Court of Appeals issued a freeze order on all the assets owned by the accused in the massacre.

In his review resolution, Arellano pointed out that Manoloto  declared a taxable income of only P1,495,200 for taxable year 2011, but the BIR had found out he bought eight parcels of land in Davao City in Jan. 17, 2011, for P20 million. The agency also discovered that Manoloto had a deferred revenue in the amount of P17,501,500 as reflected in a financial statement attached to his ITR.

 

Fraudulent return

“(Those) amounts should have been declared as part of his taxable income for 2011,” said Arellano, also noting that Carreon certified that the financial statements of Manoloto “gave a true and fair view” of his client’s financial status.

Arellano said there was prima facie evidence of a fraudulent return because Manoloto’s unreported income constituted a substantial underdeclaration of more than 30 percent.

In his defense, Manoloto explained that the P20 million he used to buy the eight parcels of land came from personal loans and friends.

But Arellano noted the BIR was able to establish that the supposed creditor in one of the promissory notes signed by the lawyer was actually out of the country on the date of her supposed personal appearance before the notary, thus, casting doubt on the authenticity of the promissory notes.

Arellano also took note of the BIR’s finding that the entries in the ITR and financial statements of the lawyer were “manipulated to make it appear that his taxable income for 2011 was only P1,495,200 (when the true and accurate income was P37,967,266.26).” Christine O. Avendaño


Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Andal Ampatuan Jr. , Arnel Cortez Manoloto , BIR , Bureau of Internal Revenue , Claro Arellano , Maguindanao massacre , National Internal Revenue Code , tax evasion charges , value added tax




Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
  1. 12 senators on Napoles ‘pork’ list, says Lacson
  2. Save the queen? Aide takes fall for Enrile, Gigi Reyes
  3. Palace prepared to charge its allies
  4. Senator’s kickback from pork bigger than those of Enrile, Estrada, Revilla – Lacson
  5. Napoles turnaround alarms whistle-blowers
  6. What Went Before: Malacañang allies alleged involvement in pork scam
  7. Napoles spills beans on Enrile, Estrada, Revilla – De Lima
  8. Timeline: Napoles tell-all
  9. HK apology: Why Estrada and not Aquino?
  10. Cedric Lee’s cohort flies out of PH despite look-out order – De Lima
  1. Napoles spills beans on Enrile, Estrada, Revilla – De Lima
  2. Gigi Reyes pins blame on aide
  3. Estrada: Gigi Reyes won’t testify vs JPE
  4. Bernice Lee arrested by NBI team
  5. Enrile chief aide back in PH ‘to face charges’
  6. ‘No real progress in PH if dynasties not dismantled’
  7. Suspect in Vhong Navarro’s mauling wants to turn state witness – De Lima
  8. Reckless driver endangered lives of Aquino, entourage–report
  9. More legal woes for Cedric Lee
  10. Henares on Pacquiao bashing: I did not start this
  1. KL confirms Malaysian Airlines Flight MH370 ended in Indian Ocean
  2. MRT passengers pass the hat for 6-year-old Ashley
  3. Rookie, lady cops lauded for quick response to MOA heist
  4. Malaysia averts another air tragedy; pilot lands troubled plane safely
  5. Revilla says he was joking; Lacson stands by his story
  6. Revilla ‘consulted’ Lacson on how he evaded arrest
  7. Cudia, dismissed for lying, got 99% in conduct
  8. Kim Henares needs a reprimand, says Cayetano
  9. Hammer-wielding robbers cause chaos at Philippines’ Mall of Asia
  10. Napoles spills beans on Enrile, Estrada, Revilla – De Lima
Advertisement

News

  • Camilla’s brother dies of NYC head injury
  • Nepal officials go to Everest to try to end crisis
  • Escudero ready to defend self should name appear in Napoles’ list
  • Obama calls for peaceful end to island dispute
  • Russia not abiding by agreement on Ukraine—Obama
  • Sports

  • Promoters Dela Hoya, Arum in talks for Pacquiao-Alvarez—report
  • Benzema guides Madrid to 1-0 win over Bayern
  • Suns’ Goran Dragic win NBA’s Most Improved Player award
  • Heat go up 2-0, hold off Bobcats 101-97
  • Ronaldo shakes off injury fears to play Bayern
  • Lifestyle

  • Photos explore dynamics of youths’ sexual identity
  • 12th Philippine Food Expo set at the World Trade Center
  • No tourist draw, Malang the croc will remain wild
  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Entertainment

  • Has Ai Ai fallen deeply with ‘sireno?’
  • Sony developing live-action Barbie comedy
  • California court won’t review Jackson doctor case
  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • Business

  • Facebook profits triple as mobile soars
  • Insular Honors Sales Performers at Testimonial Rites
  • Apple increases stock buyback, will split stock
  • Cost-recovery provisions for affected gencos urged
  • This time, BIR goes after florists
  • Technology

  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • PH-HK relations repaired, but families of victims still being courted
  • Filipinos in Middle East urged to get clearance before returning
  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Marketplace
    Advertisement