‘Mikey’ tax case dismissed

December 05, 2018

THE Supreme Court has upheld the decision of the Court of Tax Appeals dismissing the tax evasion cases lodged against former lawmaker Juan Miguel “Mikey” Arroyo.

In a 13-page resolution, the SC dismissed the government’s appeal citing “procedural defects and substantive deficiencies.”

Arroyo was accused by the Bureau of Internal Revenue (BIR) of underdeclaring his 2004, 2006 and 2007 income resulting to a total tax deficiency of P27.305 million, charges of attempting to evade or defeat tax liabilities for the taxable years from 2004 to 2009, and for failure to file his income tax returns and to pay income taxes for the taxable years 2005, 2008, and 2009.

Last March 21, the CTA cleared Arroyo of tax evasion due to insufficiency of evidence prompting the government to elevate the case to the SC.

“In criminal cases, the quantum of evidence required is proof beyond reasonable doubt; hence, the prosecution’s inability to identify the likely sources of the unreported or undeclared income of the taxpayer was a sure index of its failure to discharge the quantum,” the high court said.