Henares: Property developer involved in Alphaland-BSP deal committed fraud
Video by Cathy Miranda
MANILA, Philippines — Fraud has been committed when property developer Mario Oreta allegedly failed to declare the 5-percent share he received from a land deal between the Alphaland Corp. and the Boy Scouts of the Philippines (BSP), Internal Revenue Commissioner Kim Jacinto-Henares told a Senate hearing on Thursday.
At the resumption of the hearing of the Senate blue ribbon subcommittee, Senate Majority Alan Peter Cayetano asked Henares about Oreta’s claim that the 5-percent share was part of his compensation for closing the deal with the BSP.
READ: Next Senate Binay probe to focus on Mario Oreta’s 5% share
If indeed it was compensation, then Henares said it should have been subjected to income tax.
“I think this one would go to 32 percent because that’s the highest bracket,” she said, responding to Cayetano’s query.
“And if you don’t declare it as income and don’t pay the tax, what are the penalties?” Cayetano asked again.
“In this case, there is already fraud. So the surcharge is 50 percent,” the Commissioner again answered.
“Fraud dahil hindi diniclare as compensation?” asked the senator.
“Yeah , failure to include it or file a return for it so there’s fraud then it’s a penalty of 50 percent then you’re required to pay 20 percent of whatever amount is due every year until you get to pay it,” Henares explained.
If the 5-percent share amounted P200 million at the time the land deal was closed, then Cayetano said Oreta owed the government some P420 million if he did not pay declare it as compensation and did not pay the right income tax from 2009 to 2014.
“So in my computation, Mr. Oreta owes the government P420 million,” Cayetano said.
Oreta was invited in the hearing but did not show up for medical reasons.
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