The Bureau of Internal Revenue (BIR) has ordered a formal tax audit of Vice President Sara Z. Duterte, her husband Manases R. Carpio, and nine affiliated business enterprises.
In a statement on Tuesday, April 28, BIR Commissioner Charlito Martin R. Mendoza confirmed the issuance of Letters of Authority (LOAs), which grant revenue officers the legal power to examine books of accounts and accounting records.
The tax agency cited a determination of probable cause as the basis for the probe, framing the move as a rules-based exercise to ensure the collection of correct taxes due to the government.
The investigation will be conducted under the protocols of the Run After Tax Evaders program (RATE), which serves as the primary enforcement mechanism for the bureau in cases involving suspected tax fraud.
Mendoza said that while the LOA is a necessary legal instrument to initiate a formal audit, it does not constitute a final conclusion of liability.
However, he noted that accountability begins with the consistent application of the law and that the bureau would pursue civil, administrative, or criminal remedies if evidence of violations is uncovered.
The BIR’s decision reportedly stems from third-party information and data gathered from official sources, as permitted under Section 5 of the National Internal Revenue Code.
Specifically, the bureau evaluated testimony from the Office of the Ombudsman regarding Duterte’s Statements of Assets, Liabilities, and Net Worth, as well as reports from the Anti-Money Laundering Council disclosed during recent impeachment proceedings in the House of Representatives.
The scope of the audit extends to a portfolio of entities, including the legal firm Carpio Lawyers, formerly known as Carpio & Duterte Lawyers, and several enterprises in the food and service sectors such as Zelta Matiem Salon, City Hall King Chow Foods Corp., Davao Bounty Times Foods Corp., and Cale88 Foods Corp.
Other entities under scrutiny include Madayaw Fisheries Inc., Davao Emerging Taipans Corp., Amianan Shores, Inc., and Geometry Security and Investigation Agency, Inc.
This development comes amid heightened political tension, as the vice president faces mounting pressure from legislative inquiries.
The BIR has maintained that the audit will remain fully compliant with established protocols and that the rights of the audited entities will be respected throughout the process.
Despite the high profile of the subjects, the bureau stated its objective remains the impartial verification of tax compliance. (Jun Ramirez)
