Neri denies tax evasion charges

MANILA, Philippines - Former Social Security System president Romulo Neri denied yesterday that he evaded paying taxes to the government.

Neri said he plans to file criminal charges of perjury, malicious prosecution and violation of Republic Act 3019, the Anti-Graft and Corruption Act, against Internal Revenue Commissioner Kim Jacinto-Henares and the other complainants. 

The BIR failed to give him a chance to answer the charges before they were filed before the Department of Justice (DOJ), he added.

The allegations are reckless and unverified assumptions, and malicious imputations, Neri said.

In his counter-affidavit submitted during preliminary investigation, Neri said he did not owe the government P18.2 million in taxes as the BIR has accused him in a complaint filed last month before the DOJ.

“I believe I have honestly reported my income and had thus paid income taxes thereon to the BIR, so the instant charge of tax evasion is utterly wrong, baseless and precipitate, and it even smacks of malice and bad faith on the part of the complaining witnesses and those who ordered them to file it against me,” read the counter-affidavit.

Neri was accused of failing to declare his income as board member of Philex Mining Corp. and Unionbank of the Philippines, where the SSS owns shares of stock.

The BIR said Neri earned P11.3 million in 2008 and P34.2 million in 2009.

He did not declare his income, resulting in a tax deficiency of P6.2 million for 2008 and P11.9 million for 2009, the BIR added.

However, Neri told the DOJ through lawyers Paul Lentejas and David Domingo that the BIR’s claims were wrong.

He claimed that he did not keep for himself the full amount of profit sharing earnings in 2008 amounting to P7,923,427.97 but remitted half to the SSS.

“I only and actually received, the balance of the other half, which I honestly declared in my year 2009 (income-tax return),” he said.

“What actually happened in this case is that the BIR never informed or assessed me on my alleged tax deficiency,” he said.

Neri said that his profit sharing for 2009 amounting to P15,431,036.51 was not completely reflected in his income tax return because he received the greater portion of the amount only last January.

“Therefore I am not bound to declare it until April of next year in my 2010 ITR,” he said.