URDANETA, Pangasinan, Philippines—President Benigno Aquino III on Friday challenged Ang Galing Pinoy Rep. Juan Miguel “Mikey” Arroyo to show proof that he filed his income tax returns during those years that the Bureau of Internal Revenue said he failed to honor his tax obligations. The President refused to comment on other issues raised by Arroyo, the eldest child of former President Gloria Macapagal-Arroyo, including the claim that the P73.85-million tax evasion case was filed against him in reaction to Mr. Aquino’s dropping satisfaction ratings and the reference to the latter’s luxury cars.
“There is only one issue. The only issue is he earned income that can be clearly seen in the [assets and liabilities] that have been increasing. If you earn income, you have an obligation to pay taxes,” Mr. Aquino told reporters, adding:
“The accusation is you didn’t even file [tax returns]. Paying insufficient taxes is one thing, but here, it is shown that he didn’t file tax returns. Let me just stress, before anything more is said: If you paid your taxes, show your income tax returns.
“Tapos ang isyu (The issue is closed).”
Mr. Aquino stressed that in filing the tax case against Arroyo, his administration was not targeting members of the former First Family.
He said the tax case against the lawmaker was in accordance with the government’s campaign against tax cheats and smugglers.
“It just so happened that [the campaign] reached them,” the President said. “We are not singling them out...”
In a text message to the Inquirer, Arroyo claimed that had not Malacañang been “overeager” to slap him with tax evasion charges, he would have been able to fully explain his side to the BIR.
“Using the President’s own words that the issue is actually very simple, my answer is also very simple. If only I was given the chance to give my reply within 10 days, as originally given to me by the BIR, then I would have given them all the documents they wanted. I would have presented all they need to clarify this matter without having to reach this point. But it seems they are rushing it in their desire to expose this in the media,” he said.
Arroyo insisted that he received a copy of the BIR demand letter on April 5 and that he had 10 working days to make his reply.
“Isn’t due process integral to a fair and just justice system provided for in a healthy democracy?” the lawmaker said.
He said the charges against him were meant to divert public attention from the rising costs of power, fuel, water and other goods.
On April 7, BIR Commissioner Kim Jacinto-Henares held a press conference announcing the filing of tax evasion charges against Arroyo and his wife Angela.
Expulsion
The BIR claimed that Arroyo did not file taxes or undervalued his income in 2005, 2008 and 2009, and that his wife failed to file an income tax return from 2003 to 2009.
Militant party-list lawmakers on Friday said they would seek Arroyo’s expulsion from the House of Representatives if he failed to clear the tax evasion charge.
“Tax evasion is a major criminal offense, like drug trafficking. Moreover, members of Congress should serve as examples by being responsible taxpayers,” Akbayan Rep. Walden Bello said in a text message.
In his own text message, Anakpawis Rep. Rafael Mariano said: “There is a basis for the ethics committee to probe Mikey. Violation of the tax code is a strong ground for expulsion.”
According to Bayan Muna Rep. Teodoro Casiño, the proper time to file an ethics case against Arroyo is when the court finds him guilty of tax evasion.
“But of course, no one can stop anyone from filing a complaint,” he said.
One lawmaker has resigned from office rather than face expulsion this year—former Ilocos Sur Rep. Ronald Singson, who was sentenced to an 18-month term in a Hong Kong jail for cocaine possession on his way to Macau in 2010.
Bello himself is facing a complaint in the House committee on ethics filed by the minority for accusing former President Arroyo and her allies of corruption in a privilege speech in August last year.
Transparency
Casiño said the filing of the tax evasion case against Arroyo, which was largely based on the huge jump in his assets and net worth during his mother’s term, should prompt more strict reporting of the assets of all lawmakers.
“I have been calling for the longest time for public disclosure of the statement of assets, liabilities and net worth of public officials as a means toward greater transparency in government and for the public to be more involved in the fight against corruption,” he said.
But Gabriela Rep. Luzviminda Ilagan said the reporting of a lawmaker’s net worth would depend on individual character.
“It depends on the willingness of the person to divulge. No matter what modifications are made, if there is no desire to report, then the problem will remain,” she said.
Norman Bordadora & Gil Cabacungan, Jr. Inquirer,net