Binay main campaign donors slapped with P39-million tax evasion case
MANILA, Philippines–The Bureau of Internal Revenue (BIR) on Thursday filed tax evasion complaints with the Department of Justice against Vice President Jejomar Binay’s biggest campaign donors in the 2010 elections.
James Tiu and his wife Ann Loraine Tiu are facing charges of willful attempt to evade or defeat tax. James Tiu is the brother of businessman Antonio Tiu, who is accused of being a Binay dummy after he claimed ownership of a Batangas farm allegedly owned by the Binays.
James Tiu was charged for deliberate failure to supply correct and accurate information in his income tax return (ITR).
On the other hand, Ann Loraine Tiu was slapped with the complaint for deliberate failure to file her ITR.
The Tiu couple is charged for an aggregate tax liability of P39.03 million, inclusive of surcharges and interests.
Based on records from the Commission on Elections (Comelec), James Tiu’s total contribution to Binay’s vice-presidential bid was P7.5 million, BIR Commissioner Kim Henares said. He also made a separate contribution of P2.5 million to Binay’s political party, PDP Laban.
Article continues after this advertisementThe BIR said Tiu also paid P5.85 million as downpayment for a BMW 3351 Cabrio in the same year and sold shares of stocks not traded in the local exchange worth P259,500.
Article continues after this advertisementTiu also incurred cost and other expenses worth P150,000 and paid capital gains tax worth P9,511.00.
In his ITR for 2010, he declared total sales worth of P4.01 million and claimed expenses worth P3.65 million. He paid P58,000 in income tax.
In 2011, Tiu secured a P3.34-million loan with the Philippine Business Bank (PBB) and made additional investments worth P7.5 million in Greenergy Holdings Inc. That year, he declared sales amounting to P3.15 million, cost of sales at P2.7 million, deducted expenses of P125,000 and paid P3.12 million as amortization for his PBB loan. He paid a total of P42,500 in income tax.
Meanwhile, Ann Loraine also contributed P7.5 million to the Binay campaign in 2010, and also P2.5 million to PDP Laban, based on Comelec records.
She also sold shares of stocks not traded in the local stock exchange worth P172,000. Her costs and expenses amounted to P100,000 for that year, while her capital gains tax payments totaled P6,301.63.
As additional investment, Ann Loraine paid Greenergy Holdings Inc. P7.5 million in 2011 and P21.5 million in 2012. She failed to file her ITRs for 2010, 2011, and 2012.
Editor’s Note. This update corrects the amount of taxes Mr. James Tiu paid in 2010: not P58.7 million but P58,000.
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