DOJ indicts Jeane Napoles for tax evasion

Report from Ina Reformina, ABS-CBN News

Posted at Sep 11 2014 02:03 PM | Updated as of Sep 11 2014 11:13 PM

MANILA - The Department of Justice (DOJ) has found probable cause to indict Jeane Napoles, daughter of alleged pork barrel scam brains Janet Lim Napoles, for tax evasion.

The Bureau of Internal Revenue (BIR) earlier charged the younger Napoles with violations of the National Internal Revenue Code (NIRC) for an alleged total tax liability of P32.06 million, inclusive of surcharges and interests, for taxable years 2011 and 2012.

BIR Commissioner Kim Henares said Napoles was able to acquire a condominium unit at the Ritz Carlton in Los Angeles, California worth P54.73 million; and has a share, equivalent to P1.49 million, in a Bayambang, Pangasinan property purchased in 2012.

"She, however, did not file any income tax return (ITR) in 2011 and 2012; nor were there any records of returns filed that will prove that gifts, bequests or devices were given to her.

"There was no donor's tax or estate tax paid either," Henares said.

The BIR used the Expenditure Method of Investigation, where Napoles' unreported income was established by comparing the amount of money she spent to purchase the properties and her unreported income.

“The presumption is to be able to buy something worth P54.73 million, she would have earned an income net of taxes of P54.73 million. This is a conservative estimate because hindi pa namin binibilang yung gastos mo para mabuhay ka, kung nagpapa-party ka gabi gabi,” she said.

Henares said Napoles acquired a tax identification number (TIN) with the BIR in 2008, but has not filed any ITR eversince.

The charges against Jeane Napoles is the 191st filed by the bureau under its Run After Tax Evaders (RATE) program under the Aquino administration.

Ritzy lifestyle

Janet Lim Napoles, who has been implicated in the P10-billion pork barrel and Malampaya fund scandal, earlier confirmed that she bought the Ritz Carlton unit in Los Angeles for her daughter as a reward for doing good in school.

She also admitted giving her daughter a Porsche Cayenne and a Porsche Boxster.

The younger Napoles earlier came under fire after her Instagram photos showed expensive cars she received from her parents during her birthday, debut and graduation from college.

The photos also show expensive watches, jewelry, clothing, and shoes.

The BIR has also filed tax evasion charges against Janet Lim Napoles and her husband.