THE House prosecution on Thursday raised concerns about possible tax fraud involving three companies linked to Vice President Sara Z. Duterte and her husband, citing an alleged P1.41-billion discrepancy in their financial records.
According to trial spokesperson Zia Alonto Adiong of Lanao del Sur, the companies allegedly underdeclared income beyond the 30-percent threshold under the National Internal Revenue Code (NIRC) for initial evidence of a false or fraudulent tax return.
Alonto Adiong identified the companies as GenCorp Industries Inc., Metro City Chow Foods Corp. and Cale88 Foods Corp., whose financial records were examined by prosecution witness and forensic accounting expert Alexander Cabrera.
Of the alleged P1.41-billion discrepancy, about P1.05 billion involved GenCorp, whose bank inflows totaled approximately P2.58 billion against P1.53 billion in reported revenue from 2022 to 2025.
Metro City Chow accounted for another P99.65 million, with bank inflows of P241.87 million compared with P142.22 million in reported revenue over the same period.
The remaining approximately P260 million was attributed to Cale88, based on the prosecution’s financial analysis.
Alonto Adiong cited Cabrera’s findings of average income underdeclarations of 87% for GenCorp, 69% for Metro City Chow and 51% for Cale88.
The alleged P1.41-billion discrepancy was based on differences between the companies’ bank transactions and their reported income and financial declarations.
Alonto Adiong said Section 248(B) of the NIRC considers an underdeclaration of sales, receipts or income exceeding 30% of the amount declared as prima facie, or initial, evidence of a false or fraudulent tax return.
“Ang Tagalog po ng prima facie is sa unang tingin na pag sumobra ng 30% ang kita ng kumpanya na hindi mo idineklara sa iyong isinasubmit sa BIR na dapat nakita mo kasi doon magbabase ’yung babayaran mong tax sa gobyerno. Ang sinasabi po ng tax code natin ay sa unang tingin meron pong false or fraudulent return,” Alonto Adiong said at a press briefing.
He said the discrepancies raised questions about whether the companies had properly declared their income and paid the correct taxes.
“Hindi mo binabayaran ng tamang buwis ang gobyerno base sa tama mong kita,” he said.
Alonto Adiong stressed that unpaid taxes could deprive the government of funds needed for public services.
The prosecution earlier presented financial records showing substantial bank deposits involving the three companies, which Cabrera compared with their reported income and tax filings.
The prosecution examined the firms because of their reported links to Duterte and her husband, lawyer Manases “Mans” Carpio.
Duterte declared an interest in GenCorp in her Statements of Assets, Liabilities and Net Worth, while Carpio was identified as a shareholder of Cale88. The prosecution also presented corporate records involving Metro City Chow.
The House prosecution maintains that the financial records raise serious questions about the companies’ reported income and possible tax liabilities, which it says must be fully explained.
Despite Duterte’s denial of wrongdoing and her lawyers’ objections to the financial evidence, the prosecution stands by its findings and expects the defense to address the alleged discrepancies.
metrosundaily
