President Marcos has authorized the Bureau of Internal Revenue (BIR) to release the tax records of Vice President Sara Duterte to the Senate impeachment court, paving the way for the turnover of documents that House prosecutors hope will bolster allegations of unexplained wealth against the nation’s second-highest official.
The BIR on Thursday submitted the records to the Office of the Clerk of Court after securing the President’s authorization, a requirement under Section 71 of the National Internal Revenue Code (NIRC) before confidential taxpayer records may be inspected.
Representatives of the tax agency confirmed they had obtained Malacañang’s approval before turning over the documents.
‘Yes,’ BIR representatives replied to the Inquirer when asked whether they had secured the President’s authorization.
Senate Secretary Renato Bantug, who also serves as clerk of the impeachment court, confirmed the submission could not have been accepted without presidential approval.
‘I wouldn’t have received it if there was no presidential authorization,’ Bantug said in a chance interview.
The records were delivered before the 9 a.m. deadline set by the impeachment court in its subpoena to BIR Commissioner Charlito Martin Mendoza.
Sealed records
Bantug said Thursday’s proceedings were limited to the receipt and inventory of the documents, which arrived in two sealed red boxes containing several envelopes and folders.
It’s essentially mechanical what I did today. I’ll wait for the instructions from the impeachment court on what the next steps will be,’ he said.
He said the packages remained unopened and that court personnel had yet to determine whether the BIR had fully complied with the subpoena.
Bantug added that the President’s authorization gives the impeachment court sufficient legal basis to decide whether and to what extent the tax records may be opened and examined during the trial.
The subpoena directed the BIR to submit the tax records of Duterte, her husband, lawyer Manases ‘Mans’ Carpio, and 19 businesses allegedly linked to the couple.
House prosecutors sought the documents to support Article II of the articles of impeachment accusing Duterte of amassing unexplained wealth.
In its July 20 ruling, the impeachment court clarified that issuing a subpoena alone did not authorize the disclosure of taxpayer information.
The court said tax returns may be inspected only upon presidential order, upon the request of a foreign tax authority with presidential approval, or upon the taxpayer’s waiver, as provided under the NIRC.
Banks, AMLC also complied
The turnover of Duterte’s tax records came as subpoenaed banks and the Anti-Money Laundering Council (AMLC) were also scheduled to submit financial records sought by the House prosecutors.
To ensure an orderly turnover, the impeachment court assigned specific time slots for each financial institution and the AMLC to deliver their documents to the Clerk of Court.
The banks were ordered to submit peso-denominated financial records of Duterte, Carpio and 19 companies allegedly linked to the couple.
The AMLC, meanwhile, was instructed to submit its records to the impeachment court for confidential review before any possible disclosure to the prosecution and defense.
Reporters stationed at the Senate saw several unmarked boxes being brought into the premises on Thursday morning, although those accompanying the deliveries declined to say whether the boxes contained subpoenaed bank documents.
A person wearing a Philippine Savings Bank identification lace also entered the Senate compound but refused requests for an interview.
Among the financial institutions subpoenaed were Philippine Savings Bank, Metropolitan Bank and Trust Co., Bank of the Philippine Islands, Security Bank Corp., Land Bank of the Philippines and BDO Unibank Inc.
As of noon Thursday, Bantug’s office said it had received compliance from BDO, PSBank, Metrobank and Security Bank. There was no immediate confirmation whether the AMLC, Landbank and BPI had submitted their records.
Legal duty, not political
Malacañang defended Mr. Marcos’ decision, insisting the President merely complied with a legal duty and did not intervene in the impeachment proceedings despite his political split with Duterte.
Palace press officer Claire Castro said the law specifically requires presidential approval before confidential tax records may be inspected.
‘The President will follow what the law requires and the proper legal process,’ Castro said.
‘So if the law requires him to give his approval to the BIR so that the tax records of Vice President Sara and Atty. Mans Carpio can be opened, and if this is necessary in the interest of establishing the truth, then he will not withhold the truth from the Filipino people.’
Castro rejected claims that Marcos’ action was politically motivated.
‘But what alternative does the President have? Regardless of what others say, as long as he knows he is following the law and due process, he will continue to do so,’ she said.
She added that even if critics portray the President negatively, ‘his actions will remain guided by the law and the proper process.’
Castro also acknowledged that the decision could set a precedent for future presidents facing impeachment proceedings, but maintained that Marcos would not stand in the way of uncovering the truth.
Prosecution: Crucial evidence
House prosecutors welcomed the release of the records, saying they expect them to shed light on Duterte’s financial dealings.
House prosecution spokesperson Rep. Renee Co said the disclosure would provide a clearer picture of the Vice President’s wealth.
‘Now is the time we let the evidence be heard. We let the evidence speak,’ Co said.
Defense: No comment
The defense declined to comment, with spokesperson Michael Poa replying only, ‘No comment.’
In separate rulings issued on July 20, the impeachment court granted the prosecution’s request for Duterte’s financial records covering 2007 to 2021, a period when she served as Davao City vice mayor and mayor, despite objections from the defense.
The court stressed that the admissibility of the records as evidence would still be determined during the trial.
It said the pre-vice presidential financial records may be used only to establish a financial baseline in determining whether Duterte accumulated assets disproportionate to her lawful income while serving as Vice President.
The court emphasized that the earlier records cannot be used to introduce new impeachable offenses allegedly committed before Duterte assumed an impeachable office.
The impeachment court, however, denied prosecutors’ request to subpoena foreign currency deposits and the financial records of JTC Group of Companies Philippines Inc. and Pikimong Pikimong Philippines Corp., ruling that the prosecution failed to sufficiently establish the companies’ links to Duterte or Carpio