This story
was taken from Bulatlat, the Philippines's alternative weekly
newsmagazine (www.bulatlat.com, www.bulatlat.net, www.bulatlat.org).
Vol. V, No. 15, May 22-28, 2005
Arroyos Liable
for Undeclared U.S. Property – Two Groups
By Gerry Albert
Corpuz 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. © 2004 Bulatlat
■
Alipato Publications Permission is granted to reprint or redistribute this article, provided its author/s and Bulatlat are properly credited and notified.
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?
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.
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