BIR files tax evasion complaint vs Kapa founder's wife

MANILA, Philippines – The Bureau of Internal Revenue (BIR) filed on Thursday, August 29, a P168.2-million tax evasion complaint against Reyna Apolinario, the wife of Kapa Ministry founder Pastor Joel Apolinario.

The complaint, filed with the Department of Justice (DOJ), accused Reyna of not declaring income worth P307.7 million from 2017 to 2018.

On top of this, BIR said Reyna did not file her income tax returns (ITRs) for 2012 to 2015.

The BIR also said Reyna did not declare 9 vehicles registered with the Land Transportation Office (LTO) under her name, and 13 businesses, including gasoline stations, bakeshop, a media company, and a hotel.

"As a result of her acts and omissions, Reyna was sued for an estimated total income tax liability amounting to P168.2 million, inclusive of surcharges and interests, broken down into: 2017 – P163.9 million; and 2018 – P4.3 million," said the BIR in a statement.

 ITR vs financial statements

According to the BIR, Reyna declared income worth P171,000 in 2017 and P12.06 million in 2018.

But an audit of her financial statements revealed that Reyna had a declared beginning capital of P306.9 million in 2018.

This points to undeclared sources of income amounting to P307.7 million for taxable year 2017, which includes cash (P140 M), luxury vehicles (P27.6 M), heavy equipment (P65.7 M), real properties (P45.19 M) and other assets/investments," said the BIR.

3rd complaint vs Kapa

This is the second complaint vs Reyna and the 3rd Kapa-related.

The ministry is accused of running a ponzi scheme, where they supposedly recruit members to donate a minimum amount of P10,000 in exchange for a 30% monthly return for life.

The Court of Appeals has since frozen Kapa's assets following a petition by the Securities and Exchange Commission (SEC) and the Anti-Money Laundering Council.

The SEC filed the first complaint, for violation of the Securities Regulation Code (SRC), against the Apolinarip couple and other Kapa officials.

The National Bureau of Investigation followed with a syndicated estafa complaint – a non-bailable offense – against Joel and other officials, excluding Reyna.

There is a hold departure order (HDO) against them, with Justice Secretary Menardo Guevarra threatening warrantless arrests against any Kapa member caught collecting contributions. – Rappler.com

Lian Buan

Lian Buan covers justice and corruption for Rappler. She is interested in decisions, pleadings, audits, contracts, and other documents that establish a trail. If you have leads, email lian.buan@rappler.com or tweet @lianbuan.

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