Sandigan to pay taxes to garnish P95 M in Velarde account

MANILA, Philippines – The Sandiganbayan will have to pay the Bureau of Internal Revenue an unspecified amount in taxes to be able to garnish more than P95 million in the Jose Velarde account.

Sandiganbayan Sheriff Edgardo Urieta told The STAR the taxes might be paid by the government or the Sandiganbayan since BIR has issued a “constructive distraint” against the Jose Velarde account after the owner failed to settle tax obligations.

Urieta said he has asked the BIR to inform them how much taxes should be paid and what procedures should be taken to enable the anti-graft court to garnish the more than P95 million in the Jose Velarde account deposited in Banco de Oro.

In a letter dated Feb. 18, 2008 and sent yesterday to Internal Revenue Commissioner Lilian Hefti, Urieta requested the BIR to send them the data within five days to allow BDO to comply with the Writ of Execution.

Just like the so-called Boracay Mansion in New Manila, Quezon City reportedly owned by ousted President Joseph Estrada, the Quezon City government seized the property to satisfy payment of more than P1 million in taxes.

In his letter to Hefti, Urieta said lawyer Gerardo Banzon, head of the Legal Advisory and Research Department, Legal Services Division of BDO, had informed him that the bank cannot deliver to the Sandiganbayan the amount of P95,759,000 in the Jose Velarde account since the BIR had not yet issued a final resolution on the constructive distraint.

“We are also informed that up to this date, no reply has been received by Attorney Banzon relative to the letter dated Nov. 12, 2007 and a follow-up letter dated Jan. 17, 2008, requesting for the status of the same,” read the letter.

Banzon was furnished a copy of Urieta’s letter to Hefti.

In a letter dated Jan. 30, 2008, Urieta told Hefti that the Jose Velarde account is under garnishment by the Sandiganbayan, pursuant to the writ of execution dated Nov. 5, 2007 in Criminal Case No. 26558 entitled “People of the Philippines versus Joseph Estrada, et al.”       – Sandy Araneta