Mikey, wife to answer tax evasion raps on June 27

Ang Galing Pinoy Rep. Juan Miguel "Mikey" Arroyo and his wife, Angela, were still in the United States Thursday and could not attend the day's preliminary investigation on the P73.85 tax evasion complaint filed against them by the Bureau of Internal Revenue (BIR). The Arroyo family's counsel, Ruy Rondain, said the couple will be back in the Philippines on June 17. Rondain then asked the three-member Justice Department panel handling the proceedings to extend the deadline for the filing of the couple's counter-affidavit. "There is a reasonable assurance that the Arroyos will file their counter-affidavit. They will return on June 17," he said during the hearing. Senior Assistant State Prosecutor Lagrimas Agaran then set the submission of the counter-affidavit on June 27, the date that the Arroyo couple and BIR lawyers are available. The panel then said the BIR can submit until July 7 its reply to the Arroyos' counter-affidavit. After which, both parties can file their respective memoranda on July 15. The DOJ's preliminary inquiry seeks to determine whether there is probable cause to file a case against the respondents. Once probable cause is determined, the prosecutors handling the case can file the proper criminal information (a written legal pleading) before the appropriate court. On April 7, the BIR filed its complaint with the DOJ alleging that the couple violated the National Internal Revenue Code for their alleged willful failure to file their income tax returns and substantial underdeclaration of income. Section 254 of the Tax Code requires the filing of income tax returns while Section 255 of the same code requires the payment of taxes. The bureau said that a scrutiny of Mikey's Statements of Assets and Liabilities and Networth (SALN) from 2002 to 2009 would show that from 2004 to 2009, the lawmaker and his wife bought millions-worth of properties, including houses, vehicles, and shares of stock. However, the BIR noted: "Despite receipt of substantial amounts of income, the Arroyo spouses repeatedly failed to file any annual income tax return (ITR) and to pay the corresponding taxes due thereon." The bureau alleged that Mikey did not file his ITR in 2005, 2008, and 2009 while Angela was declared as a one-time tax-payer in 2004. — RSJ/KBK, GMA News