DOJ recommends indictment of Corona daughter for tax evasion

By Ina Reformina, ABS-CBN News

Posted at Jun 05 2014 03:21 PM | Updated as of Jun 05 2014 11:21 PM

MANILA, Philippines – The Department of Justice (DOJ) has recommended the indictment of Carla Corona Castillo, the daughter of former Chief Justice Renato Corona, for tax evasion.

In a 16-page resolution dated May 30, the DOJ found probable cause to charge Castillo before the Court of Tax Appeals (CTA) for underdeclaration of income and failure to pay the correct taxes.

In its complaint against Castillo, the Bureau of Internal Revenue (BIR) alleged that she filed income tax returns (ITR) only for taxable years 2008 and 2009, and declared income of P130,580 and P97,460, respectively.

However, the BIR noted that she was able to purchase an P18-million property in posh La Vista, Quezon City in 2010, and paid the corresponding documentary stamp tax of P329,000.

"All in all, we agree with the BIR that the deliberate scheme of respondent Carla in failing to file her ITR for taxable year 2010 and failing to pay the correct amount of tax due thereon, and her act of declaring amounts of income for taxable years 2008 and 2009 and then subsequently purchasing a property worth P18 million in 2010, demonstrate her scheme of deliberate tax evasion in violation of Sec 254 of the NIRC, as amended," the resolution read.

The BIR used the expenditure method in arriving at the conclusion that with her declared income, Castillo could not have afforded the La Vista property, and therefore committed tax evasion.

Former Chief Justice Corona and Castillo's husband, Dr. Constantino Castillo III, were earlier indicted before the CTA on separate charges of tax evasion.

The Corona family has repeatedly denied the charges and insist that these are all part of the Aquino administration's continuing persecution stemming from the Supreme Court's decision to distribute Cojuangco-owned Hacienda Luisita to the tillers of the land.