MANILA, Philippines — The defense on Friday questioned the Bureau of Internal Revenue’s (BIR) handling of the tax records of Vice President Sara Duterte and her husband, lawyer Manases “Mans” Carpio, focusing on whether the agency had issued a notice of discrepancy after authorizing an examination of their tax returns.
During the 37th day of Duterte’s impeachment trial at the Senate, defense counsel Kristine Ferrer asked BIR Office of the Commissioner Chief of Staff Anne Loraine Garcia-Marquez about the issuance of such a notice following the release of letters of authority (LOAs) for the examination of the couple’s tax records.
Ferrer cited Revenue Regulations 22-2020, which she said required tax examiners or revenue district offices to issue notices of discrepancy under the prescribed circumstances.
Garcia-Marquez acknowledged the regulation but declined to confirm whether a notice had been issued to Duterte and Carpio, citing the confidentiality of taxpayer information and ongoing investigations.
“I know the answer, but I cannot state it because it's confidential,” the BIR official said, invoking Section 270 of the National Internal Revenue Code and Revenue Memorandum Circular 26-2008 as bases for protecting information concerning taxpayer investigations.
The defense also presented copies of the BIR’s LOAs for Duterte and Carpio during the cross-examination, prompting a dispute over the public disclosure of confidential tax documents.
Private prosecutor Erwin Matib objected, noting that the defense had previously opposed the disclosure of confidential tax information during the prosecution’s direct examination of the BIR witness on Thursday.
Ferrer countered that the taxpayers had consented to the disclosure.
Presiding officer Francis Escudero allowed the defense to proceed.
The defense initially focused on provisions of the National Internal Revenue Code governing income taxation before presenting the BIR's LOA issued to Duterte on May 29, 2026, which Garcia-Marquez confirmed during her testimony.
The defense also presented the LOA concerning Carpio, including documents relating to the couple's income tax payments.
The presentation of the tax documents prompted an objection from the prosecution, which raised concerns over the confidentiality of the records displayed on the courtroom screen.
The defense maintained that it had obtained the consent of its clients to present the documents during the proceedings.
The prosecution, however, stressed that it was not authorized to disclose confidential information contained in the LOAs or reveal details of taxpayers' income tax records.
The exchange highlighted the issue of taxpayer confidentiality as the impeachment court examined evidence being used to support or challenge the allegations of unexplained wealth against Duterte.
Garcia-Marquez, a BIR official involved in the examination of the tax-related evidence, had testified about the reported combined earnings of Duterte and Carpio exceeding P85.34 million, a figure raised during the prosecution's questioning on the previous day of the trial.
The defense's cross-examination seeks to scrutinize the basis and interpretation of the tax information presented by the prosecution as the Senate impeachment court continues its assessment of the evidence. – (END)
