The official Blog of "Meet the Faces of KaJoyfulness" for showbiz, talent updates, anything and everything under the sun.

Thursday, January 13, 2011

Carlo J. Caparas appears before DOJ, denies tax evasion

MANILA, Philippines (ABS-CBN News) - Comic strip creator-turned film director and producer Carlo J. Caparas appeared before the prosecutor in charge of investigating a pending tax evasion case against him to file his counter-affidavit and personally swear to it in front of the prosecutor.

In said counter-affidavit submitted to Senior State Prosecutor Rosanne Elepano-Balauag , Caparas denied any accountability for the 12 counts of alleged failure to file his quarterly income tax returns, 4 counts of alleged failure to file annual income tax returns and 48 counts of failure to file his Value Added Tax returns for the period 2006-2009.

The BIR claims a total tax due from Caparas for the four-year period is P540,210,206, inclusive of surcharges and penalties.

The BIR's investigation of Caparas was based on the planned cancellation of two television shows dubbed "Ang Pangarap Kong Jackpot" and "Kroko" produced by Caparas featuring lottery winners. These shows were reportedly part of a contract between Caparas and the Philippine Charity Sweepstakes Office (PCSO) amounting to P1.3 billion.

In his counter-affidavit Caparas claimed that under subject PCSO contracts, "all payments shall be net of ALL taxes."

He said the PCSO "undertook and stipulated to shoulder the responsibility of taking care with the payment of all taxes arising under the contracts and all other legal obligations connected therewith" such that his stipulated compensation under these contracts "shall already be free of all kinds of tax burden."

Caparas also claimed the PCSO withheld substantial amounts from his compensation "which were in turn duly paid/remitted to the BIR."

Caparas insists that granting that he failed to pay the correct taxes, this was "not willful, deliberate or done with evil intent."

"Kaya ako nandito, handa akong harapin kahit ano, at siguro may konting kulang o pagkakamali pero wala akong kasalanan," Caparas said in an ambush interview with reporters.

"Considering that I am a layman totally unfamiliar with the intricacies and nuances of laws governing contracts and taxes, my failure to correctly appreciate the legal consequences of the stipulations in my contracts should not be met with punitive action," Caparas' counter-affidavit read.

The BIR however insists the case against Caparas is strong.

Speaking to reporters at the DOJ this morning, BIR Deputy Commissioner for Legal and Inspection Group Estela V. Sales said "We wouldn't file cases when we are not convinced that the case is strong. So when we come to the DOJ, we believe that we have a good case. It's now up to the DOJ for them to resolve." (report from Ina Reformina, ABS-CBN News)