Kapa founder's wife faces raps over P307-million undeclared income source

ABS-CBN News

Posted at Aug 29 2019 12:03 PM | Updated as of Aug 29 2019 12:57 PM

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MANILA — The Bureau of Internal Revenue filed Thursday tax evasion raps against the wife of the founder of religious group Kapa Community Ministry International for failing to declare the source of P307.7 million in income.

Reyna Apolinario, wife of Kapa founder and head pastor Joel Apolinario, did not file her income tax return from 2012 to 2015, the BIR said in a statement.

Mrs. Apolinario, who serves as Kapa's corporate secretary, declared an income of P206,578 in 2016, P171,000 the next year, and P12.06 million in 2018, said BIR.

However, the declared "beginning capital" in her audited financial statement ballooned to P306.90 million in 2018, noted the agency.

"Considering the previous income declarations and payments of Reyna, this points to undeclared sources of income amounting to P307.70 milion for taxable year 2017," said the BIR.

The allegedly undeclared income source accounts for P140 million in cash, P27.60 million worth of luxury vehicles, P65.70 million in heavy equipment, P45.10 million worth of real properties, among others, it added.

Nine vehicles under Mrs. Apolinario's name were also excluded from her financial statements in 2017 and 2018, said the BIR, citing information from the Land Transportation Office. She was also found to have 13 businesses under her name.

"As a result of her acts and omissions, Reyna was sued for an estimated total income tax liability of P168.2 million," said BIR.

If found liable, she could face up to 10 years in prison and P100,000 in fines.

OTHER LEGAL WOES

Kapa Ministry made headlines earlier this year for allegedly promising its members a 30-percent return for their donations. The group's lawyer Al Vitangcol denied this, saying worshipers instead get "blessings."

The Securities and Exchange Commission ordered the revocation of Kapa Ministry's registration in April, almost 3 months before President Rodrigo Duterte ordered the closure of the organization in June.

The Anti-Money Laundering Council in June also secured an order from the Court of Appeals freezing Kapa’s assets.

Also in June, the Securities and Exchange Commission filed with the DOJ a criminal complaint for violation of the Securities Regulation Code against Kapa and 8 of its officers, accusing them of engaging in a ponzi scheme and fraudulently selling investments without the required government license.

A Kapa donor tried to stop the SEC’s closure order by going to the Supreme Court but the high court rejected it outright, saying it is not a trier of facts.

The NBI had also filed syndicated estafa raps against Kapa and its officers with the DOJ in July.

Both complaints are currently undergoing preliminary investigation in the justice dept.

Kapa's founder, Pastor Apolinario, has gone into hiding amid a manhunt operation against him.

With a report from Mike Navallo, ABS-CBN News