(Eagle News) — The Court of Tax Appeals has cleared former presidential son Mikey Arroyo in the P27.3-million tax evasion case filed against him.
In its 69-page decision dated March 21, the First Division said this was after the prosecution failed to prove the son of former President Gloria Arroyo had underdeclared his wealth in his income tax returns in 2004 and 2006, and in 2007.
According to the court, the BIR’s “net worth method” was inaccurate, and it failed to prove that Arroyo’s net worth increased because of donations, gifts, inheritance or earnings that were not subject to income tax.
It added that the audit had been hastily done.
“There is nothing in the joint complaint-affidavit which states that the (BIR) requested the accused to produce his books, and that despite such request, accused failed to produce his books, or that accused has no books at all, or that the books produced by the accused do not clearly reflect his income,” the court said.
It noted the BIR’s letter of authority (LOA), which allowed investigators to secure documents pertaining to the case, was served on April 5, 2011 and brought to the DOJ on April 7, which meant the agency “failed to consider the books of the accused.”
Associate Justice Roman del Rosario penned the decision, while Associate Justices Erlinda Uy and Cielito Mindaro-Grulla concurred.