Tax audit involving VP, hubby confirmed

The Bureau of Internal Revenue (BIR) has issued a Letter of Authority (LoA) for a tax examination involving either Vice President Sara Duterte or her husband, lawyer Manases “Mans” Carpio, but declined to identify which spouse was covered.

BIR official Anne Loraine C. Garcia-Marquez confirmed the LoA during Duterte’s Senate impeachment trial on Thursday after Presiding Officer Francis “Chiz” Escudero asked whether the agency had authorized a tax examination involving either spouse.

“In this case, did you issue a letter of authority against either the Vice President or her spouse?” Escudero asked.

“Yes, Your Honor,” Garcia-Marquez replied.

Garcia-Marquez said she could confirm only the issuance of the LoA because its details were confidential.

“We have to issue a letter of authority to conduct audit to determine whether or not proper taxes are paid,” she said.

Combined income

Earlier, Garcia-Marquez testified that Duterte and Carpio reported combined net income after taxes of P85,343,803.23 from 2007 to 2025, based on a summary of their income tax returns.

Prosecution lawyer Erwin Matib then pointed to what he described as a difference between the couple’s combined net income after taxes and Duterte’s declared net worth of P98.66 million in her 2025 Statement of Assets, Liabilities and Net Worth (SALN).

Defense lawyer Kristine Ferrer objected, arguing that Garcia-Marquez had no personal knowledge of the entries in Duterte’s SALN.

The court sustained the objection but did not strike Matib’s statement. Escudero reminded the prosecutor not to “testify for the witness.”

Net income and net worth are separate financial measures. Net income refers to earnings after taxes and applicable deductions over a period, while net worth is the value of assets minus liabilities at a particular point.

Cash balances fall

The prosecution also presented figures from the couple’s audited financial statements submitted to the BIR, showing cash on hand and in banks from 2022 to 2025.

The couple had P21.23 million in cash as of 31 December 2022, which increased to P28.97 million in 2023 before falling to P15.53 million in 2024 and P13.80 million in 2025.

Garcia-Marquez stressed that the audited financial statement figures were separate from the net income reported in the couple’s tax returns.

She said the statements were verified by an independent certified public accountant to determine whether they were “presented fairly and in accordance with the Philippine financial reporting standard.”