Prosecution: Sara Duterte got salary from Davao City in 2023 despite constitutional prohibition

MANILA — Vice President Sara Duterte received compensation from Davao City government in 2023, according to tax documents revealed before the Senate impeachment court, which is a potential violation of the constitution, a prosecution counsel asserted Thursday.

Anne Loraine Garcia-Marquez, a certified public accountant and a lawyer who works as the chief of staff at the Bureau of Internal Revenue Office of the Commissioner, confirmed in the trial that Duterte also submitted BIR 2316 to the agency as part of her tax returns.

BIR 2316 is a certificate issued by an employer which states the income paid to an employee as well as the witholding taxes deducted by the employer, Garcia-Marquez explained during the direct examination by prosecution lawyer Erwin Matib.

Garcia-Marquez noted that Duterte submitted two BIR 2316 certificates in which the indicated employer was the city government of Davao, where her brother Sebastian “Baste” Duterte has been serving as mayor since 2022.

One BIR 2316 document dated 2023 was signed by city accountant Vingelin A. Bajan of the city government of Davao, and it showed Duterte as the employee, testified the BIR official, who did not disclose the amount of the compensation income and the nature of work rendered by Duterte to the local government when she was already the vice president.

Matib asked the CPA-lawyer whether Duterte, also a lawyer, can practice her profession and accept professional fees and other income aside from her salary as vice president.

Duterte’s counsel Kristine Ferrer objected to the question, but presiding officer Francis Escudero allowed the BIR witness to read relevant portions of the 1987 Constitution, specifically Sections 13 and 6 of Article VII.

Section 13, which was invoked by the prosecution panel in previous impeachment proceedings, bars the vice president and other top government officials from holding any other office or employment during their tenure.

It states that the president, vice president, members of the Cabinet and their aides during their tenure should not “directly or indirectly, practice any other profession, participate in any business, or be financially interested in any contract with, or in any franchise, or special privilege granted by the Government or any subdivision, agency, or instrumentality thereof, including government-owned or controlled corporations or their subsidiaries.”

It also directs the public officials to “avoid conflict of interest in the conduct of their office.”

Section 6, meanwhile, prohibits the president and vice president from receiving “during their tenure any other emolument from the Government or any other source.”

Asked by Matib whether the BIR still deducts taxes from prohibited income, Garcia-Marquez replied in the affirmative.

The National Internal Revenue Code states that all income derived from whatever source, lawful or unlawful, are taxable, she said.

Asked by Escudero whether the BIR could determine whether an income is legal or illegal, Garcia-Marquez said revenue officers during audit may examine the books and all other documents to make a determination.

She noted, though, that the agency should first issue a letter of authority to determine whether or not proper taxes are paid or if an income is legal or illegal.

Asked by the presiding officer whether the BIR had issued a letter of authority against either the vice president or her spouse, the CPA-lawyer answered “yes” but immediately stressed that the details of the investigation were “confidential” and cannot be disclosed in the Senate court.

The impeachment tribunal is currently discussing Duterte’s alleged unexplained wealth.