Mikey Arroyo: I don't have a Porsche

source: abs-cbn

MANILA, Philippines - Ang Galing Pinoy party-list Rep. Juan Miguel "Mikey" Macapagal-Arroyo on Thursday dismissed the tax case filed against him and his wife as a gimmick to boost President Aquino’s sagging political ratings.

Arroyo, son of former President and now Pampanga 2nd District Rep. Gloria Macapal Arroyo, said the case is plain harassment. He attacked the President by saying that he (Mikey) does not own a Porsche or Lexus, luxury cars that the President owns.

"I think government needs a gimmick. Lahat umaakyat. Umaakyat presyo ng gasoline, unemployment, kuryente, tinapay. Umaakyat survey ng Vice-President, Supreme Court, bumaba survey ng pangulo. As far as I’m concerned, I believe I can defend myself well," he told ABS-CBN News.

The party-list lawmaker showed ABS-CBN a Bureau of Internal Revenue letter dated April 5 subjecting him to a general audit and giving him 10 days to comply with the documentation requirements.

He said the government was unfair when it sued him when he only received the notice 2 days ago and the grace period had yet to expire.

Arroyo said he was willing to show income tax returns proving that he paid his taxes but now that he has a court case, he will save it for the courts.

“I have nothing against government going after people supposedly remiss in paying taxes. Secondly, maybe it’s a blessing in disguise. They filed a case against me, now rules of evidence will apply," he said.

"What I’m worried about is how come they sent me a notice of audit, they gave me 10 days to come up with requirements and they filed a case against me after 2 days. This is harassment," he added.

He also said that if he hadn't been paying the right taxes, he could easily pay the penalty.

"I have been dutifully paying my taxes. Everything I own is in my [statement of assets, liabilities and net worth] SALN. The issue here is lack of due process in this audit. If ever I haven’t been paying right taxes, I could easily pay penalty, which is under the Constitution. I have been paying right taxes," he said.

He also balked at the P73.85 million in back taxes that he allegedly owes the government, inclusive of surcharges and interest. "P73 million, ang laki nun. Saan ko kukunin yun? General audit would have proven kung kulang ako o hindi. How did they get that figure? P73.9 million before you file a case you must go through audit," he said.

Arroyo also said his wife, Angela, does not make money. “I don’t pay her to be a house wife. Full time house wife siya," he said.

His lawyer, Ruy Rondain, noted that it doesn’t make sense for Arroyo not to file an income tax return and then file a SALN in Congress since the latter can be used against him in a tax case.

"You have a sitting congressman who has SALN. If he’s going to cheat taxes, andun na SALN. You don’t provide one and not provide the other. It doesn’t make sense for Mikey not to disclose," he said.

The BIR is suing Arroyo and his wife for failing to file income tax returns for the years 2005, 2008 and 2009. This despite millions of pesos worth of real and other properties declared in the lawmaker's SALN in the years 2002 to 2009.

Arroyo's wife, Angela, had no returns from 2003 to 2009, BIR said.

Investigation by the BIR showed the spouses owned residential houses in the United States, in Lubao, Pampanga and La Vista Subdivision in Quezon City. Aside from these, they also declared as assets motor vehicles, shares of stock, jewelry, clothes and other personal effects.

The BIR said the couple underdeclared their incomes by more than 30% for taxable years 2004, 2006 and 2007. It said the Arroyos owe the government at least P73.85 million in back taxes, inclusive of surcharges and interest.

source: abs-cbn