Arroyos Liable for Undeclared U.S. Property – Two Groups
 
The past few days saw the Bureau of Internal Revenue (BIR) going after suspected tax evaders. The BIR has questioned prominent industrialists and celebrities regarding their tax declaration, or the lack of it. Is the BIR prepared to question President Gloria Macapagal-Arroyo and husband Mike Arroyo for failing to declare a real estate property in the U.S. and to subsequently pay the necessary taxes?

By Gerry Albert Corpuz
Bulatlat

Two cause-oriented groups disclosed that President Gloria Macapagal-Arroyo and her husband, Mike Arroyo, did not include in their joint Statement of Assets and Liabilities (SAL) from 1992 to 2002 a multi-million dollar real estate properties acquired in the United States since 1992.

Based on documents obtained by the fisherfolk alliance Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya, or National Federation of Small Fisherfolk Organizations in the Philippines) and the peasant group Kilusang Magbubukid ng Pilipinas (KMP, Peasant Movement of the Philippines), the latest property acquired by the Arroyos was a real estate property located at 1510 Austin St, San Francisco, California on Sept. 1, 1999 from Jerry Benjamin and Karen M.

The property was paid in full for $1,428,000 and was later sold to Harold Goldman and Zelda E. for $1,675,000 on Nov. 13, 2002. Pamalakaya and KMP said that the Arroyo couple earned $247,000 from the sale of the real property in San Francisco in 2002.

Pamalakaya national chair Fernando Hicap said that Macapagal-Arroyo, then the vice president to President Joseph Estrada, did not declare the property in their joint SAL from 1999 up to the 2001. He said the Arroyo couple did not reflect the proceeds from the sale of property in their joint SAL in 2002.

From 1992 to 2002, Hicap said that the SAL of the Arroyos only declared their properties in Baguio City (house and lot), Antipolo City (residential lot), Tayabas Commercial Lot, Bulacan Agricultural Lot and Batangas Agricultural Lot, cash on hand and cash on banks, race horses, jewelry, appliances and furniture, law books, stocks, cars and office equipment.

"In the name of national interest and public trust, we ask the Arroyo couple to speak out and tell the public the truth and nothing but the truth," Hicap said.

Possible tax evasion case

KMP Deputy Secretary General for Internal Affairs Willy Marbella said that the President and the First Gentleman are grossly liable for omitting the purchased property in San Francisco in their joint SAL, as well as equally liable for not declaring their joint income arising from the sale of the property in November 2002.

Marbella said that the Bureau of Internal Revenue (BIR) should look into the possible tax liabilities of the Arroyo couple emanating from the proceeds of sales of their U.S. properties acquired and sold to different buyers between 1992 and 2002.

Marbella challenged BIR officials to look into the possible tax liabilities of the Arroyo couple in connection with their campaign to get tax evaders. "If the BIR is really sincere to go after tax evaders, they should come to terms and put the Arroyos under investigation for possible tax evasion."

Pamalakaya and KMP said the BIR should assess the financial records of the First Couple outside their reported SAL because the properties acquired and later sold for profits were not taxed by the Philippine government.

Arroyo's real estate properties

Documents obtained by KMP and Pamalakaya also revealed that the First Couple started acquiring properties in the United States in 1992. The first property acquired by the Arroyos was a housing unit on 727 Gellert Blvd. Daly City, CA, which was acquired on July 7, 1992 and transferred to LTA on June 18, 1998. The property was sold to a Roberto S. Aleonar on Dec. 15, 1998 for $242,000 as against its transfer value of $302,500.

The second was a housing unit in 2425 Tipperary Ave. in South San Francisco, California on July 13, 1992. The property was transferred to LTA Realty Corporation on June 18, 1998 and was sold on March 11,1999 to Rodolfo Valera for $224,000 as against its transfer value of $280,000.

The third was the building on 737 Bush St. in San Francisco, CA, which was bought on Nov. 11, 1992. The property was transferred to LTA on June 1998 and was sold to Prana Income Fund-six Llc on June 14, 1999 for an undisclosed amount.

The fourth property was a building on 1776 Sacramento St. San Francisco, CA which was paid by the First Couple for  $1,912,000, transferred to LTA in June 1998 and was sold on Sept. 11, 1998 to Garlock Trust, an American firm for $2,300,000.

Mike Arroyo’s affidavit

According to Attorney Arroyo's executed affidavit on April 1998, the coupled acquired properties in San Francisco Bay area in California in 1992 in behalf of his brother, now Negros Occidental Rep. Iggy Arroyo.

In November 1992, Attorney Arroyo initiated the incorporation of LTA Realty Corp. and issued a Trust Agreement for the Van Ness and Bush properties in favor of his brother. Also in the same year, 100 percent shares of LTA were transferred to Atty. Arroyo's brother to pave the way the transfer of Van Ness and Bush properties to LTA-USA.

But the documents gathered show that the filing of LTA Realty Corporation in the Office of the Secretary of State of California was under the name of the Mike Arroyo and the properties acquired and sold were done in the names of himself and wife now President Gloria Macapagal-Arroyo.

"While Atty. Arroyo was saying that the properties acquired and subsequently sold in the U.S. belong to Rep. Iggy Arroyo, transactions were done in the name of the presidential couple and their real estate firm," KMP's Marbella said. Bulatlat

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