Manila: Tax evasion case was filed against the daughter of a businesswoman who has been identified as a mastermind in the siphoning of lawmakers’ development funds, known as “pork barrel,” a senior official said.
The tax liability of Jeane Catherine Napoles, daughter of businesswoman Janet Lim-Napoles stood at P32.06 million (Dh2.67 million), Bureau of Internal Revenue (BIR) Commissioner Kim Henares said.
“She did not file income tax returns for 2011 and 2012 in violation of the National Internal Revenue Code. Although she had no declared income she acquired properties such as a condominium unit in Los Angeles, California, worth P54.73 million (Dh4.56 million) in 2012; and 1/9 share of a farm lot in Bayambang, Pangasinan, northern Luzon, worth P1.49 million in 2011,” said Henares, adding these properties were registered under the name of the young Napoles,
The complaint does not include the fabulous places where Napoles stayed while she was a studying at the Fashion Institute of Design and Merchandising (FIDM) where she earned a degree on international manufacturing and product development.
These included a penthouse suite of 1010 Wilshire in Los Angeles, and a unit at the Ritz-Carlton Residences, also in Los Angeles, which is worth P80 million.
“You cannot have money without earning for it. An earned income must declared by filing income tax return. In her case, she did not even file a donor’s tax to show that she received these properties as gifts or donations to her, or an estate tax, to prove that she inherited these properties,” said Henares.
The Philippine government will request from the United States government for the repatriation of the young Napoles, said Henares.
Napoles has been travelling to Europe and Asia, based on her entries in her Tumblr account.
Last year, she graduated magna cum laude (with high honours) from the FIDM where she finished a course in international manufacturing and product development. She was also president of FIDM’s honour roll society, and had two study tours to Asia and Europe while in college, according to her LinkedIn account.
Tuition fee for her course at the FIDM was estimated at $42,405 (Dh155,732) per semester.
The other children of the older Napoles are also under investigation, said Henares, but did not give details.
The Napoles matriarch claimed that the family earned big money from coal mining in Indonesia, and other legitimate businesses. She was identified as the businesswoman who peddled an operation, which could make lawmakers earn 50 per cent from the release of their development fund through fake projects and non-operating non-government organisations. She allegedly earned 40 per cent from the illegal operation, and other government officials get the rest of the profit, whistle blowers said.
Since last month, the older Napoles has been detained at a police headquarters at Fort Santo Domingo in Santa Rosa, Laguna, southern Luzon due to a case of serious illegal detention that a nephew filed against her. He eventually became a whistle blower and a state witness.
BIR is investigating the NGOs, which Napoles used as conduits to siphon government funds. The NGO officials, alleged as Napoles’ dummies, will be investigated, vowed Henares.
“We will find out if these corporations have declared their respective incomes,” said Henares.
At the same time, the owners of real estate properties who allegedly covered for Napoles will also be investigated, to find out if they have the capacity to purchase such properties, or if they have notarised deeds of trust to prove that they do not own the said properties, said Henares.
A whistle blower gave to government authorities a list of properties allegedly owned by Napoles in the Philippines and abroad.
The pork barrel scandal has outraged many Filipinos, prompting them to hold a series of anti-corruption rallies since last August 26.
They have launched a campaign to gather one million signatures for the total scrapping of the country’s pork barrel system from the president down to the lowest ranking elected government officials.
Now, there are calls for people’s initiative to enact a law that would abolish the country’s pork barrel system. The influential Catholic Church has supported anti-corruption protest rallies.
Catholic bishops, activists, and leaders of middle class groups believe that government officials’ pork barrel is the root of corruption and patronage politics in the Philippines.
