Look: Post alleges planes at Roxas’s disposal during campaign sorties were acquired VAT-exempt

A post alleged that Mar Roxas’s campaign jets were tax-exempt for millions of pesos in VAT, unlike other imported aircrafts.

Mar Roxas controversial private planes

Mar Roxas’s controversial private rides

In a Facebook post shared 143 times as of Monday evening, the Facebook Page Pinoy Buzz provided the juicy details of the sweetheart arrangement between the Daang Matuwid of Pnoy and Mar with their buddy identified as Francis Eric Gutierrez.

According to Pnoy Buzz, billionaire Francis Eric Gutierrez received the favor sometime in October 2012, just days after it made the request.

Billionaire-pals who lend Roxas their jets wangled the tax breaks within just days of request. The aircraft are traceable to Roxas’ financiers Francis Eric Gutierrez and Liberal Party Rep. Edgardo Erice. Aside from the two jets, the six other aircraft enjoy tax-free privilege, sources say.

According to the source of Pinoy Buzz, a Cessna Caravan jet, valued at $2,335,275, was granted VAT exemption on Oct. 1, 2012, only ten days upon request on Sept. 21, 2012.

Because of the sweetheart deal, the government lost a sizeable revenue amounting to $280,233, or P14,011,650 or equivalent to 12-percent VAT.

Pinoy Buzz further added that the application for VAT exclusion was from Miguel Alberto V. Gutierrez, vice president of Air Juan Aviation Inc.

By the way AirJuan is known in the small general aviation business to be owned by Eric Gutierrez. It was incorporated only on Jan. 18, 2012, under SEC registration certificate No. CS-201200959.

If you’ve visited Coron, Palawan, AirJuan airplanes are a common sight at the Coron airport flying in and out to their destinations.

The exemption was granted on very general grounds alleged the airline industry source where Pinoy Buzz based their post described the deal as legal but immoral.

That said importation is necessary in the operation of its business. No other aircraft importation or aviation firm was granted such privilege. “Legal but not moral.

The exemption was signed by no less than Carlo A. Carag, Undersecretary for Revenue Operations and Legal Affairs Group on behalf of Finance Sec. Cesar Purisima.

Pinoy Buzz wrote that the exemption was granted because Undersecretary Carag noted that AirJuan had a Certificate of Public Conveyance and Necessity
“as shown by the Annual Certificate of Registration from the Civil Aeronautics Board, dated May 17, 2012. The CAB is an agency under the Dept. of Transportation, at that time headed by Roxas.”

Pinoy Buzz revealed that the VAT-exempted Cessna Caravan has serial number 208B2338.

Aside from the controversial Cessna plane, Roxas’s pal Eric Gutierrez own three more Cessna Caravans, each worth $2.5 million. Other aircraft traceable to him are a Citation Mustang worth $2.5 million; a Citation CJ4, $9 million; a Cessna Sovereign, $19 million; and a Bell 429 helicopter, $6.5 million.

In another post circulating online, Roxas has six planes at his disposal during the campaign period courtesy of his pal.

Pinoy Buzz alleged that Gutierrez and Erice are reported to have bankrolled not only Roxas’ 2010 vice presidential run but also Aquino’s presidential bid. Their only aircraft then was the Citation Mustang, which Aquino and Roxas flew.

The said Citation Mustang was also tax-exempt, alleged Pinoy Buzz.

Here is the excerpt from Pinoy Buzz’s post to give you an idea of the circumstances surrounding the Citation Mustang.

The exemption was given to Galeo chairman Isagani P. Ferrer on Dec. 22, 2009, only three weeks after request on Dec. 1, 2009. Again, no other aircraft, aviation firm, or miner was granted such privilege.

Galeo had applied for VAT exemption of its two-year lease of the Citation Mustang from Boom Line Investment Ltd. (No record exists of that supposed lessor based in the British Virgin islands, a money-laundering haven.)
The lease was for $30,000 a month for 24 months starting Dec. 1, 2009, totaling $720,000. The foregone 12-percent VAT amounted to $86,400, or P4,320,000.

The reason for the exemption was again very general: “That Galeo intends to use the aircraft in transporting passengers and/or cargo from points within and without the Philippines.”

Signing the tax break on behalf of the BIR commissioner was James H. Roldan, Assistant Commissioner for Legal Service.

A condition for the grant of the VAT exemption was that Galeo would re-export the Citation Mustang to Boom Line after the two-year lease. There is no record of such compliance.

You may read the original post below.

Mar Roxas’ campaign jets are exempt from tens of millions of pesos in value-added tax, unlike others’ imported aircraft,…

Posted by Pinoy Buzz on Sunday, February 14, 2016

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