NOY: PUT UP OR SHUT UP, MIKEY / LUZON OMBUDSMAN RESIGNED: I AM NEXT!
MANILA, APRIL 9, 2011 (TRIBUNE) By Aytch S. de la Cruz and Charlie V. Manalo - Peeved at former President Gloria Arroyo saying in a TV interview that she and her family cannot expect President Aquino to treat them fairly, along with her son, Rep. Juan Miguel "Mikey" Arroyo, charging that due process has been denied him on the announced tax fraud case filing as well his charge that Aquino has been targetting the Arroyos and their allies for political persecution, Aquino virtually told the Arroyos to put up or shut up.
Aquino told reporters that Mikey Arroyo should just show the Bureau of Internal (BIR) records that would prove he has filed his income tax returns (ITR) if he wants to get out of his P73.85-million tax fraud case.
Aquino yesterday said that Mikey should just refrain from airing his gripes and just pay the right amount of taxes he owes the government.
In a chance interview after his morning engagement in Rosales City, Pangasinan, Aquino
insisted that they are not singling out the family members and allies of the former president and incumbent Pampanga Representative in the BIR campaign against tax evaders under his administration.
"The accusation is that you (Mikey) didn't file (any ITR). It's a different matter when you just failed to pay the right amount of taxes. But in this case, the income tax returns were not filed. So let me just reiterate, instead of saying more than what needs to be said, the issue is just simple: if you already paid taxes, show your income tax returns—end of story," Aquino told reporters.
He has obviously taken offense at the younger Arroyo's claims that the BIR's action against him and his wife, Angela, was purely "political harassment" intended to salvage the President's dwindling ratings amid the ballooning prices of fuel, power, and other basic commodities in the country at present.
"I don't want to argue with him (Mikey) anymore. Let me just repeat, the basis (of the complaints) as explained to me by the DoF (Department of Finance) and the BIR is that there was a statement of assets and liabilities networth (SALm) that was being filed…as required by law. When the SALn was increasing, the income tax returns were nowhere to be found," Aquino just said.
In a telephone interview with Mikey's lawyer, Ruy Rondain, he told the Tribune that the BIR chief, Kim Henares, should check on BIR revenue regulation 3-2002, issued on March 27, 2002, which roughy states that there is no necessity of filing an ITR form with Congress as the source already withholding the tax, and all that is needed is the usual W-4 filled up form.
On the claim of Henares that Mikey's SALn showed an increase in assets, but that such increase did not correspond to tax payment, he said that certain assets may no longer necessitate additional taxes. He did not elaborate.
It was also claimed by sources close to the congressman, that the assets such as homes abroad or here belong to a corporation, and not to the congressman as a personal assets.
Meanwhile, a text message making the rounds said: "Since Malacañang & BIR insist on Cong. Mikey Arroyo 2 make public his ITR, PNoy must also make public the complete document of his Porsche. D names of the 1st 2 owners and the date the car was purchased & transferred ownership. Public must know if the 4mer owners f d Porsche paid correct taxes too."
Former president, Gloria Arroyo finally broke her silence yesterday on Aquino's "persecution" of her family.
In an interview with a television network, the elder Arroyo accused Aquino of singling her family as manifested in the tax evasion charges filed against Mikey and his wife, Angela Thursday by the BIR, chiding the Aquion administration, saying she doesn't expect any fair treatment for her family under the present regime.
"Based on what is unfolding, I do not expect fair treatment (from this administration)," the elder Arroyo said in Tagalog, but added that she pins her hope on the judicial system which she believes will follow the rule of law in handling issues concerning them.
Her son, Mikey also chastised Aquino for oversimplifying the tax evasion case filed against him and his wife saying Aquino is overlooking the issue of due process which was not accorded to him.
Mikey said had the BIR only honored its word giving him 10 days to submit all the documents the tax collection agency had required of him, he could have done so and cleared everything.
"Using the President's own words that the issue is simple, my answer is just as simple," he said. "If I had been given that 10 days to provide the documents there was no need for things to have gone this far to clear the issue and it wouldn;t have reached this point, the younger Arroyo added.
Mikey minced no niceties for Aquino whose family benefitted much under the presidency of her mother via an interchange in the Subic-Clark-Tarlac Expressway wherein Aquino's family was also compensated a whopping P1 million per hectare of their sugarland, saying the Aquino administration had to haphazardly file the tax evasion case against him and his wife so as to divert the public attention from the continuing price rise of basic commodities as against the dwindling support of the people on Aquino.
Aquino's defense of the BIR action was predictably backed by his spokesmen, Secretaries Herminio Coloma and Ricky Carandang of the Palace Comm group who, in separate interviews over radio dzXL Friday morning, belied the counter-accusations thrown at them by Arroyo's allies.
Reacting to Sen, Juan Miguel Zubiri, Coloma said: "That accusation is wrong because we are not harassing anyone. Those (cases filed) are in accordance with the law because of our President's commitment to uphold the rule of law. No one is above the law. The law has to be applied equally to every citizen, whether you belong to a higher or a lowly class, our government has the responsibility to enforce the law," so said Coloma.
Carandang, for his part, said they will just "let the process take its course" with regard to the case of other public officials who might be in the same situation as Mikey Arroyo in the event the BIR finds they have also been remiss in their tax duties.
Sen. Chiz Escudero, a known supporter of Aquino in the Senate yesterday dared Justice chief Leila de Lima to disprove claims of Mikey Arroyo that the filing of tax fraud against him and wife, Angela, is merely a political harassment of the administration.
"It's time to perform. Don't just show off to impress other people," the senator said, noting reports that 36 tax evasion charges have been filed before the DoJ have so far not shown any indictments made.
"The only way that tax evaders will see that government is serious about this issue is when it sees that cases are actually being filed in court.
"Why is it taking so long? I hope that the DoJ will give these cases priority in order to send out a clear message to tax evaders that President Aquino and his administration are dead serious about running after tax cheats," he said.
Sen. Francis Pangilinan chided Arroyo's counter-charges, saying that the amount that the BIR is running after him and his wife is measly, compared to the tens of billions of pesos worth of alleged corruption committed by the past administration.
Sen. Ferdinand "Bongbong" Marcos Jr. said the matter of going after tax evaders should not be used as a tool of the administration to persecute critics. "I am curious to see if this, like the ARMM issue, like the impeachment issue, is in fact a legal proceeding or a political one. Lets watch," he said.
The BIR, for its part, remained firm in its decision to slap tax evasion charges against the former presidential son and his wife.
Henares bared that no politics is involved, and that she knew of the case against the young Arroyo way back in July last year, but the BIR refused to make it public then, as the agency collated evidence to make it an airtight case.
She also said that they will not go public unless they are sure they can convict the person that they will eb charging. "We are convinced it would lead to conviction."
"The basis of the investigation is the SALn that has been filed - this is a requirement for all government officials - and the income tax returns filed by the couple. The violation is for Section 254 and 255 (National Internal Revenue Code of 1997) - the attempt to evade taxes, and failure to file or submission of incomplete or false returns," Henares said.
Elected public officials are mandated under Republic Act (RA) 6713, otherwise known as the "Code of Conduct and Ethical Standards for Public Officials and Employees" to accomplish and annually submit declarations under oath of his SALn, including that of his spouse and children under 18 years old who are living in the family household.
The complaint also claimed the Arroyos filed their ITRs for taxable years 2004, 2006 and 2007 but substantially understated their income.
Based on information and documents gathered by the BIR's National Investigation Division, the Arroyos were able to acquire the following properties from 2004 to 2009: residential houses in Lubao, Pampanga and La Vista Subdivision in Quezon City; motor vehicles; stock shares; jewelry; clothes; and other personal effects as enumerated in the SALNs of Mr. Arroyo from 2002 to 2009.
"If you report that you have an asset, you have a net worth, you should be able to say where it comes from. And where it comes from, normally, there's a tax consequence," Henares said.
The BIR used the Net Worth Method of tax investigation in validating Mr. Arroyo's underdeclaration of income from 2004 to 2009. This method is an indirect method of proof used in establishing taxable income in criminal tax cases, useful in reconstructing taxable income when the government is unable to establish income through direct evidence. With Angie M. Rosales and Jason Faustino
Deputy Ombudsman quits: Jalandoni, not Gonzalez By Michael Punongbayan (The Philippine Star) Updated April 09, 2011 12:00 AM
MANILA, Philippines - Deputy Ombudsman for Luzon Mark Jalandoni resigned from his post yesterday, saying that he appeared to be next in line among those who are being targeted by Malacañang for dismissal.
"The charges leveled against me are baseless," Jalandoni said in a short written statement coursed through Assistant Ombudsman and spokesman Jose de Jesus Jr. a day after reports that administrative complaints accusing him of various offenses had been filed with the Office of the President.
"In order to spare the Office of the Ombudsman from further controversy, I have tendered my irrevocable resignation as Deputy Ombudsman for Luzon," Jalandoni declared.
President Aquino had earlier dismissed Deputy Ombudsman for Military and Other Law Enforcement Officers Emilio Gonzalez III on the basis of what the Palace described as the inordinate and unjustified delay in resolving the administrative case against slain hostage taker Rolando Mendoza, who ran amuck in August last year, resulting in the death of eight Hong Kong tourists.
Gonzalez challenged the authority of the President over him, and Ombudsman Merceditas Gutierrez refused to implement the dismissal order, saying her deputy has been cleared and was not found to be negligent in the case of Mendoza, a retired policeman.
Malacañang ordered Gonzalez dismissed from government service last week for neglect of duty and grave misconduct in connection with the delay in the resolution of the Mendoza case.
The STAR learned that Jalandoni's resignation letter was sent to Malacañang by registered mail.
Jalandoni's resignation followed reports that he is the next official of the Office of the Ombudsman, after Gonzalez, facing administrative charges before the Office of the President.
Gonzalez has vowed to fight the dismissal order, stressing that his conscience is clear and that he did not ask for P150,000 in exchange for a favorable ruling as claimed by Mendoza.
Jalandoni, on the other hand, is reportedly facing three administrative complaints before the Office of the President, including one that accuses him of usurpation of authority for signing documents on behalf of Ombudsman Gutierrez.
The complainant was identified as one Antonio Baltazar of Tondo, Manila, whose graft case against former Energy Regulatory Commission (ERC) chair and now incumbent Isabela Rep. Rodolfo Albano was junked.
Jalandoni, former head of the Office of the Ombudsman's Field Investigation Office (FIO), was appointed Deputy Ombudsman for Luzon in March 2010.
He was former state prosecutor of the Department of Justice; a former Program Director of the Witness Protection, Security and Benefit Program (WPSBP), also of the DOJ; and a former undersecretary of the Office of the Chief Presidential Legal Counsel.
Jalandoni resigned about a month before the impeachment trial of Gutierrez is expected to begin at the Senate, where she stands accused of betraying public trust for allegedly sitting on high-profile cases involving the Arroyo administration.
De Jesus said that with the position of Deputy Ombudsman for Luzon vacant, Ombudsman Gutierrez would take charge of his duties and responsibilities.
He said an officer-in-charge can actually be appointed but he or she will only deal with administrative matters and not cases.
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