BIR orders tax probe of Sara, hubby, 9 firms
The Bureau of Internal Revenue (BIR) has ordered a tax audit of Vice President Sara Duterte, her husband Manases Carpio, and nine businesses being linked to the couple, saying there is probable cause to have their financial records examined.
In a statement on Tuesday, the BIR said it had issued letters of authority (LOAs) for the audit based on third-party information, as well as data from publicly available and official sources.
These include testimony from the Office of the Ombudsman on Duterte’s statements of assets, liabilities, and net worth (SALNs), and reports from the Anti-Money Laundering Council (AMLC)—matters that came to light last week in the House impeachment proceedings against the Vice President.
Flagged transactions
Duterte’s SALNs indicated no petty cash or bank deposits since 2019 despite declaring liquid assets. Meanwhile, the AMLC reported that banks had flagged more than 33 suspicious transactions and 630 covered transactions amounting to P6.7 billion involving Duterte and her husband.
The AMLC also recorded a total of P3.9 billion across 417 transactions from 2005 to 2026.
With the issuance of LOAs, BIR revenue officers are authorized to examine the taxpayers’ books of accounts and other financial records.
The companies to be audited are as follows: Carpio Lawyers, Zelta Matiem Salon, City Hall King Chow Foods Corp., Davao Bounty Times Foods Corp., Madayaw Fisheries Inc., Davao Emerging Taipans Corp., Amianan Shores Inc., Cale88 Foods Corp., and Geometry Security and Investigation Agency Inc.
“It is not a conclusion of liability, but it is a necessary step in determining the correct taxes due. Accountability begins with the consistent application of the law,” BIR Commissioner Charlie Mendoza said.
“Where there is a basis to investigate, the BIR will do so. And if evidence of tax violations exists, it is our duty to pursue the appropriate civil, administrative, or criminal remedies” he added.
The BIR announced the audit a day before the House justice committee’s last hearing for determining probable cause in the impeachment complaints against Duterte.
It also came a day after Carpio filed a criminal complaint with the Quezon City court against the AMLC and the Bangko Sentral ng Pilipinas for the “illegal and felonious disclosure” of his and his wife’s bank records.
“The end objective of this lawful exercise is to collect the correct taxes due to the government. This will be a rules-based approach in determining the truth. Rights will be accorded to the audited entities,” the BIR said.
“This will be fully compliant with all Run After Tax Evaders (RATE) protocols, the primary enforcement program of the bureau for tax evasion and tax fraud,” it added.
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