Singer Claire de la Fuente, whose real name is Clarita de Guzman, is facing tax evasion charges for her alleged failure to pay more than P417 million in taxes from 1997 to 2004, the Bureau of Internal Revenue (BIR) said on January 22.

Senior Assistant Chief State Prosecutor Severino Gana Jr. had approved the filing of charges against the singer, also known as the “Karen Carpenter of the Philippines,” in her capacity as vice president and treasurer of the Philippine Corinthian Liner Corporation.

The Philippine Corinthian Liner Corporation runs King of Kings Transport, which owns more than 200 buses mostly plying the Alabang-Baclaran-Monumento route.

Deputy Commissioner for Legal and Enforcement Gregorio Cabantac said the decision was made after deficiencies were discovered in the taxes paid by the company from 2002 to 2004—this based on the company’s income statements submitted to the Land Transportation Franchising and Regulatory Board (LTFRB).

In her counter-affidavit, De la Fuente claimed her company did not operate from 1996 up to 2004 and, hence, could not have had any tax liability. She also refuted the signatures appearing in the company’s statements of income in 2002 and 2004, alleging they were forged.

Internal Revenue investigators, however, presented proof—including the financial statements submitted to the LTFRB, company expenses that included salaries and wages, and the SSS, Pag-IBIG, and PhilHealth contributions of employees.

These, they said, are evidence that De La Fuente’s company had been operating and had, in fact, earned substantial income from 1997 to 2004.

“The claim that she has no knowledge of the subject financial statements, and that they were not responsible for the submission of the same to the LTFRB, and [that] her signatures were forged is unbelievable,” the Justice Department said.

The department also harped over De La Fuente’s own admission that she had been engaging in the “kabit system,” a term used to describe an illegal practice whereby operators who own one or two buses use the franchise granted to a different and legitimate bus company to be able to ply their route.

The transport board grants franchises only to companies that own a minimum of 10 buses.