Government prosecutors recommended the filing of tax evasion charges against former Social Security System president Romulo Neri for his failure to declare and pay his tax duties for the years 2008 and 2009.

In a 22-page resolution, the DoJ found probable cause to indict Neri for two counts of violation of Section 255 of the National Internal Revenue Code for under-declaration of his income and for failure to pay tax liabilities in the amount of P18.3 million.

The Bureau of Internal Revenue claimed that for the year 2008, Neri earned a total taxable income of P11,352,006.97  and P34,212,471.87 for 2009 in his capacity as president and nominee to the Board of Directors of several companies where SSS invested some of its members’ money, among them Philex Mining Corp. and Union Bank of the Philippines.

Computations made by the BIR showed that Neri under-declared his income by P9,999,392.97 or 88.08 percent in 2008 and by P18,788,307.14 or 54.92 percent in 2009, resulting in a tax deficiency of P6,290,012.65 and P11,977,719.52 for the two consecutive years, for an aggregate tax liability of P18,267,732.17, inclusive of surcharges and interests.

The tax evasion charges stemmed from Neri’s admission during the inquiry conducted by the Senate Committee on Finance that he receivedmore than P127 million  in  bonuses and allowances  as board member of PMC and Union Bank

Neri was among the four top executives of the SSS investigated by the Senate for supposedly receiving additional paychecks from the private sector and perks from government-owned and –controlled corporations and government financial institutions.

Following Neri’s admission, BIR investigators scrutinized his financial transactions and subsequent tax payments.

The DoJ, in upholding the complaint of the BIR, noted that the Supreme Court declared in its previous decided cases that there is no need for a final notice of assessment before a proceeding in court may be started.

Malacañang supported the decision of the Department of Justice to file charges against former National Economic Development Authority chief Romulo Neri.

Deputy presidential spokesperson Abigail Valte said the rule of law must prevail.

Neri insisted all his income tax returns were filed appropriately, but failed to convince the DOJ.

Neri’s lawyer, Paul Lentejas, said they will file the appropriate motions at the court instead of exhausting available legal remedies at the DoJ.

“We deem that our legal arguments will be better heard and considered at the court and not at the DOJ level,” Lentejas said.               With Efren Montano