In a nine-page resolution promulgated by State Prosecutor Roseanne Elepano-Balauga and Assistant Chief State Prosecutor Miguel Gudio, the DOJ dismissed the case because the Bureau of Internal Revenue (BIR) had deprived Velasquez of due process by not notifying her about her tax deficiency before charging her with tax evasion.
"As such, the complainant’s (BIR) allegation that respondent (Velasquez) willfully attempted to evade or defeat payment of tax and/or failure to supply correct and accurate information has no basis," she said. "It came too late to be apt."
Balauga said the BIR sent the notice of tax deficiency to Velasquez in July last year after the complaint for tax evasion was filed against her.
"Be it noted that the notice and demand are requirements of due process to which every taxpayer is entitled," she said.
Last year, the BIR filed tax evasion charges before the DOJ against Velasquez for her alleged failure to disclose her earnings, under a modeling and talent contract with Nestlé Philippines, and a production outfit running to P3 million in 2003, which represented 48.29 percent of her taxable income.
In another resolution, the DOJ dismissed the motion for reconsideration of cosmetics expert Jose Mendez to dismiss the tax evasion charges against him.
State Prosecutor Juan Pedro Navera ruled that the plea of Mendez lacked merit.
Mendez was charged with tax evasion for his alleged failure to declare up to P3.4 million in taxable income from branches of his Weighless Center and Spa between 2001 and 2003.
He claimed that the branches were inexistent from 2001 to 2003. — Jose Rodel Clapano