Court dismisses 3 tax evasion cases worth R73.8-M vs Arroyo

The Court of Tax Appeals (CTA) has dismissed the three tax evasion cases worth P73.8 million filed against the son of former President Gloria Macapagal-Arroyo by the Bureau of Internal Revenue (BIR) for insufficiency of evidence.

In a 69-page decision, the court's First Division stated that the assessment issued against Juan Miguel Arroyo (Mikey) was "based on mere presumption and not on actual facts, the same is invalid and may not be the basis of the accused civil liability,"

The BIR filed the criminal complaints against the former Pampanga congressman and his wife Angelina in 2011 for alleged massive under declaration of income for the years 2004, 2006 and 2007.

It said the Arroyos acquired real properties and other assets worth hundreds of millions of pesos, including houses in the United States and at the exclusive La Vista Subdivision, Quezon City but paid income taxes ranging from P21 million in 2004, P3.4 million in 2006 and P2 million in 2007.

Specifically, they were accused of failure to supply correct and accurate information in their joint income tax returns.

But the court said the prosecution failed to present concrete evidence to substantiate its allegations probing the guilt of the accused beyond reasonable doubt.

It said charges were mere speculation and probabilities which cannot substitute for the required proof to establish the guilt of the accused.

The court said the increase in the couple's net worth might be due to donations, gifts, inheritance or income subject to final tax like capital gains tax, interest on bank deposits and royalties.

CTA Presiding Justice Roman Del Rosario who wrote the decision stated that "assessment must be based on actual facts and not on mere assumptions and probabilities."