‘Binay estate’owner owes P73-M taxes

MANILA, Philippines - The businessman who claimed ownership of a 350-hectare farm alleged to be owned by Vice President Jejomar Binay in Batangas is facing a P73.34-million tax evasion case before the Department of Justice (DOJ).

The Bureau of Internal Revenue (BIR) accused Antonio Tiu of substantial under-declaration of income for 2008 and 2013 to avoid payment of taxes.

Tiu had claimed ownership of the sprawling 350-hectare “Hacienda Binay” in Rosario town. He found himself immersed in more trouble after allegedly racking up more than P73 million in tax debt in 2008 and 2013.

Tiu is chairman of publicly listed companies AgriNurture Inc. and Greenergy Holdings Inc.

BIR Commissioner Kim Henares said Tiu had a total tax deficiency of P73.34 million inclusive of penalties and surcharges.

Sought for comment, Tiu described the filing of the tax case as “unfair, premature and unfounded.”

He said there is still an ongoing audit being conducted by the BIR, with which he has been fully cooperating in good faith.

“While expected, it is still disappointing that the BIR has allowed itself to unduly harass and vex me with the unfounded and premature filing of a criminal complaint for tax evasion.

“Clearly, any sense of fairness and justice has been set aside in filing the premature criminal complaint against me,” Tiu said.

Tiu said his lawyers are now studying legal actions against the case.

Henares, however, denied harassing Tiu, saying the agency has an airtight case against the businessman.

Based on the investigation conducted by the BIR, Tiu declared an income of P824,244.25 in his income tax return for 2008 and did not file any income tax return in 2013.

However, a check with the Securities and Exchange Commission showed Tiu purchased P53.5 million worth of shares of stocks in 2008 and P71.42 million in 2013.

The BIR was able to get hold of the General Information Sheets of Tiu’s firms, Agrinurture Inc. and Tiu Peck and Sons Holding Inc.

Henares said the agency used the net worth or expenditure method of audit in estimating Tiu’s tax liabilities.

The expenditure method of tax investigation is based on the theory that if the subject taxpayer’s expenditures during a given year exceed his or her reported income and the source of funds used to make the expenditures is unexplained, such expenditures represent unreported income.

Through the expenditure method, the BIR was able to establish that Tiu underdeclared his income by 6,395 percent in 2008 and by 100 percent in 2013.

Tiu, tagged as the dummy of Binay in the ownership of the Suncamp Agri-Industry Park in Rosario, Batangas, is also under investigation by the Philippine Stock Exchange to check whether his two listed companies had in any way been involved in transactions of the controversial farm estate.

Tiu denied being a dummy of Binay, claiming to be the registered owner of the Batangas property he purchased from Agrifortuna Inc. for about P446 million. However, Tiu has so far paid only P11 million of the total purchase price.

Agrifortuna is a company founded by Binay and his wife, Elenita.

The filing of the criminal complaint follows the tax evasion cases filed against Tiu’s brother James and his wife Anne Lorraine, who were the biggest campaign donors of Binay during his vice presidential campaign in 2010. – Edu Punay