MANILA, 17 June 2005 — In the strongest action taken so far by the government against tax cheats, the Bureau of Internal Revenue (BIR) yesterday filed criminal charges against a member of the Cabinet.
Charged with tax evasion was Agriculture Secretary Arthur Yap for the alleged failure of his family’s company, DHY Realty, to pay real estate taxes worth four million pesos ($73,394).
A press statement issued by the Department of Finance and the BIR said DHY Realty failed to pay the correct withholding tax and documentary stamp tax on real estate transactions from 1997 to 1999. Yap was vice-president then of the company.
“There are no sacred cows in our campaign against tax evasion,” the statement quoted Finance Secretary Cesar Purisima as saying.
Since it launched the Run Against Tax Evaders (RATE) campaign, the BIR has filed criminal charges against a number of celebrities, including actor Richard Gomez and popular singer Regine Velasquez.
Yap, the highest government official to be charged with tax evasion, said he was shocked by the charges but had not had time to study them.
“I don’t know what they are charging us about,” he told a broadcast network.
Yap, who was appointed as agriculture sec retary in mid-2004, said he was no longer connected with DHY Realty.
Presidential spokesman Ignacio Bunye said the filing of the charges shows that the rule of law “applies to everyone, including Cabinet members.”
“Let justice take its course no matter who gets hurt,” said Bunye, adding: “Let Secretary Yap defend himself in both the court of law and public opinion and let him be judged fairly on both counts.”
BIR chief Guillermo Parayno said the bureau started looking into the possible filing of charges against the Cabinet official after receiving documents from “informants.”
Secretary Purisima said the BIR’s campaign against tax evaders will continue in order to ensure that the government collect proper taxes from everyone.
Purisima said the filing of tax case against Yap also shows that the BIR does not favour “the rich, the famous and the mighty.” (Additional input from agencies)
