Former presidential economic adviser Michael Yang and executives of Pharmally Pharmaceutical Corp. paid meager income taxes or none at all in recent years, documents obtained by the Senate from the Bureau of Internal Revenue (BIR) showed.
Senate Minority Leader Franklin Drilon said at the 13th hearing of the Senate Blue Ribbon Committee Thursday (October 28) that Yang did not file his income tax return from 2014 to 2017, according to information from BIR.
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Showing a presentation made from BIR’s records, Drilon said Yang paid an income tax of P7,600 in 2018 from a taxable income of P208,000.
However, his tax records for 2018 and 2019 were “unreadable,” according to Drilon’s presentation.
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Speaking through a translator, Yang confirmed paying P7,600 in taxes in 2018 but said he needed to verify his tax records with his accountant.
“If that is what is reported [with the BIR], I think it is correct because that is prepared by our accountant,” Yang said.
The Senate panel led by Senator Richard Gordon is investigating the contracts awarded by the government to private companies, including Pharmally, for COVID-19 pandemic-related supplies.
Drilon said there was “no information” according to the BIR about Pharmally Secretary and Treasurer Mohit Dargani’s ITR for 2018.
For 2019, Dargani paid P22,062 in income taxes and P97,241 in 2020.
Dargani’s sister, Twinkle, who was Pharmally’s president, paid P29,187 in income taxes in 2018, and only P1,000 in 2020.
Drilon said BIR had no information on Twinkle’s tax returns for 2019, while documents on her taxable income for 2018 and 2020 were unreadable.
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“The ITRs of the Darganis are incomplete and have several unreadable portions, but the taxable incomes and taxes paid appear to be very low, especially considering that they were able to buy luxury cars during relevant periods,” Drilon said.
Records from the Land Transportation Office shown in previous Senate hearings showed Twinkle had a 2021 Lamborghini Urus registered under her name in December 2020, months after Pharmally bagged major contracts from the Procurement Service of the Department of Budget and Management. The vehicle was worth P25 million.
Mohit, meanwhile, has an P8.5-million 2021 Porsche 911 Turbo S registered under his name.
Drilon said the BIR had “no records available for the taxable year 2019 up to present” for Pharmally Chairperson Huang Tzu Yen.