MANILA, Philippines — The Bureau of Internal Revenue on Thursday filed a P168.2-million tax evasion complaint against Reyna Apolinario, Kapa Community Ministry International’s corporate secretary.
The BIR accused her of committing a wilful attempt to evade or defeat tax and failure to file return, supply correct and accurate information, pay tax, withhold and remit tax and refund excess taxes withheld on compensation for taxable years of 2017-2018.
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Apolinario is one of the officials of Kapa, whose operations were ordered suspended by the Securities and Exchange Commission. She is also the wife of Joel Apolinario, Kapa president and head pastor.
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The bureau noted that Apolinario’s beginning capital in 2018 ballooned to P306.9 million. It said that Apolinario declared income of P206,578 in her 2016 Income Tax Return and P171,000 in 2017.
She declared an income tax of P12.06 million for 2018.
"Considering the previous income declarations and payments of [Apolinario], this points to undeclared sources of income amounting to P307.7 million for taxable year 2017," the BIR said.
Undeclared sources of income
The supposed undeclared sources include P140 million in cash, luxury vehicles amounting to P27.6 million, heavy equipment worth P65.7 million, real properties of P45.1 million and other assets/investments.
The BIR added that the investigation conducted by the Land Transportation Office showed that nine vehicles were registered under Apolinario in 2017 and 2018, “which were not declared in her financial statements submitted to the BIR.”
The Bureau’s Integrated Tax System also showed 13 businesses under her name.
“As a result of her acts and omissions, [Apolinario] was sued for an estimated total income tax liability amounting to P168.2 million, inclusive of surcharges and interests, broken down into: 2017-P163.9 million and 2018-P4.3 million,” the Bureau said.
'Ponzi' scheme
The SEC earlier explained that KAPA’s activity constituted a “Ponzi” scheme, an investment program that offers impossibly high returns and pays investors out of capital contributed by newly recruited members.
The National Bureau of Investigation in July filed syndicated estafa and violation of the Securities Regulation Code complaints against Joel Apolinario and 14 others KAPA incorporators and members.
The raps were announced on the same week that the Securities and Exchange Commission and the Bangko Sentral ng Pilipinas issued separate statements to counter claims on social media that KAPA would soon get the licenses required to operate.