BIR orders probe on VP Duterte, spouse, 9 businesses

By Anna Leah Gonzales, Philippine News Agency

Vice President Sara Z. Duterte (Inday Sara Duterte/facebook)

MANILA – The Bureau of Internal Revenue (BIR) has ordered the issuance of Letters of Authority (LOAs) to conduct tax audits on Vice President Sara Z. Duterte, her spouse Manases Carpio, and nine business entities linked to the couple.

In a statement Tuesday, the BIR said the firms subject to audit include Carpio Lawyers (formerly Carpio and Duterte Lawyers), Zelta Matiem Salon, City Hall King Chow Foods Corporation, Davao Bounty Times Foods Corporation, Madayaw Fisheries Inc., Davao Emerging Taipans Corporation, Amianan Shores, Inc., Cale88 Foods Corporation, and Geometry Security and Investigation Agency, Inc.

The bureau said the move follows its determination that probable cause exists to warrant a formal audit investigation.

The LOAs authorize designated revenue officers to examine the taxpayers’ books of accounts and other financial records.

The BIR added that the issuance of LOAs was based on third-party information, including data obtained from publicly available and official sources, as allowed under Section 5 of the National Internal Revenue Code (NIRC).

It said it also considered testimony from the Office of the Ombudsman regarding Duterte’s Statements of Assets, Liabilities, and Net Worth (SALNs), as well as reports from the Anti-Money Laundering Council disclosed during impeachment proceedings initiated by the House of Representatives against the Vice President on April 22.

“A Letter of Authority is the legal instrument of the BIR to initiate formal tax audits of any taxpayer. It is not a conclusion of liability, but it is a necessary step in determining the correct taxes due,” BIR Commissioner Charlito Martin Mendoza said.

“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.”

The BIR assured that due process will be observed and the rights of all audited entities will be respected.