MANILA, Philippines – The Bureau of Internal Revenue (BIR) greenlit an audit probe into the tax records of Vice President Sara Duterte, husband Mans Carpio, and nine businesses linked to the couple.

The development comes days after the House justice committee deferred the opening of a box containing the couple’s tax records amid clashing views by lawmakers on whether they would violate the National Internal Revenue Code provision that prohibits the release of such confidential information without the consent of the taxpayer.

In a press release on Tuesday, April 28, the BIR said it carefully determined that there existed probable cause to conduct tax audits of the couple.

Their decision was based on third-party data, such as the Statements of Assets, Liabilities, and Net Worth or SALNs of the Vice President, and Anti-Money Laundering Council reports on the couple’s bank transaction records.

House impeachment proceedings revealed notable disparities between the Vice President’s bank transactions — worth P6.7 billion in a 20-year period — and her declared net worth that only peaked at P88 million. Her highest declared cash and cash deposits were P6.3 million, and, in some years, were zero.

The government agency said it had ordered the issuance of letters of authority, which Commissioner Charlito Martin Mendoza explained was the “legal instrument of the BIR to initiate formal tax audits of any taxpayer.”

“It is not a conclusion of liability, but it is a necessary step in determining the correct taxes due. Accountability begins with the consistent application of the law,” he said.

“The end objective of this lawful exercise is to collect the correct taxes due to the government. This will be a rules-based approach in determining the truth. Rights will be accorded to the audited entities. This will be fully compliant with all Run After Tax Evaders (RATE) protocols, the primary enforcement program of the bureau for tax evasion and tax fraud,” he added.

The businesses that will be audited are:

• Carpio Lawyers (formerly Carpio & Duterte Lawyers)
• Zelta Matiem Salon
• City Hall King Chow Foods Corporation
• Davao Bounty Times Foods Corporation
• Madayaw Fisheries Inc.
• Davao Emerging Taipans Corporation
• Amianan Shores, Inc.
• Cale88 Foods Corporation
• Geometry Security and Investigation Agency, Inc.

– Rappler.com