Guo faces tax evasion raps

MANILA, Philippines — Dismissed mayor Alice Guo of Bamban, Tarlac is facing a complaint for not paying P500,000 in capital gains tax on the purported sale of her shares in Baofu Land Development Inc.

The Bureau of Internal Revenue (BIR) yesterday filed before the Department of Justice a tax evasion complaint against Guo in connection with the transfer and later sale of her shares in Baofu Land.

According to BIR Commissioner Romeo Lumagui, the transfer of shares to a certain Jack Uy had no capital gains tax and documentary stamp tax, thereby violating the National Internal Revenue Code, particularly Section 254 (attempt to evade or defeat tax), Section 255 (failure to file CGT and DST returns), and Section 250 (failure to file/supply certain information).

Aside from Guo, also charged in the complaint were Uy, and Baofu corporate secretary Rachelle Joan Malonzo Carreon.

“We found that the taxes for this transfer of shares have not been paid, so it’s clear that there is tax evasion in this transaction,” Lumagui said.

If found guilty, the respondents of the case could face imprisonment.

He added that the audit being conducted by the BIR covers the entire business operations of Guo that were disclosed during the Senate hearing on her alleged ties to Philippine offshore gaming operators or POGOs.

The BIR chief said other tax complaints could also be filed against Guo and other persons.

‘Guo still in Philippines’

Guo’s legal counsel Stephen David said he is now preparing Guo’s motion for reconsideration on her dismissal by the Office of the Ombudsman.

“The MR is a prerequisite so that we can elevate the case before the Court of Appeals through a petition for review,” David said over One PH’s “One Balita Pilipinas.”

He said Guo was disheartened by the ombudsman’s ruling but hopes that her camp can answer appropriately through its pleadings and motions for them to be able to “show their defense and the merit of her situation.”

David said he has been assured by the embattled former mayor that she remains in the Philippines. He surmises she is in “central Philippines.”

“She told me that she is still in the Philippines, she assured me of that. And of course, I believe in the capacity of our [Bureau of] Immigration to safeguard our ports. As of now, no Alice Guo has been apprehended in any of our ports,” David said, noting that they were able to talk to each other via video call.

Though communicating only via Zoom and phone calls, David said he continues to convince Guo to surface and face the Senate investigation and other legal proceedings in connection with the allegations against her over POGO.

David said that as he observed during their video call, Guo lost weight, looked stressed and was in a somber mood.

Poll case to proceed

Despite her expulsion, the Commission on Elections (Comelec) will proceed with its investigation into the possible criminal liability of Guo for violating election laws.

At the Kapihan sa Manila Bay forum yesterday, Comelec Chairman George Garcia noted that the ombudsman’s decision won’t affect the material misrepresentation case against Guo.

Garcia explained that the ombudsman case against Guo is administrative in nature while the Comelec complaint is a criminal complaint.

“As far as Comelec is concerned, our case is separate and independent. Even if she was removed from her position, the case will continue to be tried,” he said.

The Comelec is currently conducting a preliminary investigation to determine if there is probable cause to file a criminal complaint against Guo. If proven guilty of misrepresentation charges, Garcia said Guo could face one to six years imprisonment.

He further noted that the decision of the ombudsman is “immediately executory.” An appeal may be filed before the CA.

Councilor is acting mayor

Interior Secretary Benhur Abalos has sworn in the lone municipal councilor left in the municipality of Bamban, Tarlac to replace Guo and a string of suspended officials.

Erano Timbang has been named as the acting mayor of Bamban to replace Guo, who was ordered dismissed by the Office of the Ombudsman for grave misconduct.

Aside from Guo, Bamban Vice Mayor Leonardo Asuncion and several municipal councilors were found guilty of conduct prejudicial to the best interest of the service and suspended for three months.

Timbang was the lone Sangguniang Bayan member who was not suspended or dismissed from office as he opposed the resolution allowing POGOs in their town.– Elizabeth Marcelo, Mayen Jaymalin, Romina Cabrera