Duterte prefers ‘compromise’ with tax evaders over filing cases

Pia Ranada

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Duterte prefers ‘compromise’ with tax evaders over filing cases
President Rodrigo Duterte is still convincing Finance Secretary Carlos Dominguez III and BIR chief Cesar Dulay to let tax evaders settle with the government instead of filing cases against them

MANILA, Philippines – For President Rodrigo Duterte, requiring big tax evaders to just settle with the government is much more practical than filing a case against them.

Duterte told Filipino-Chinese business groups in Pasay City on Friday, March 24, that he wants his administration to take the “compromise” approach in dealing with tax evaders, but he is yet to convince concerned government officials about this.

“Even those with evasion of taxes, the law allows a compromise. And I will allow compromises,” he said.

Among the members of the audience were Tessie Sy-Coson and Lucio Tan, whose companies are among the country’s biggest tax payers.

Duterte argued that the resolution of tax evasion cases takes too long, while settling with tax evaders would give the government much needed money for public services.

“If they choose to fight it in court, and it is so very slow [a] process, I would rather a compromise be made. No particular party. Maski sino ‘yan (It applies to anyone)…I am suggesting it so we can use the money,” he said.

He plans to use money from the settlement of cases to fund hospitals in Sulu and Basilan, among the poorest areas in Mindanao.

But there is resistance to his idea. In particular, Finance Secretary Carlos Dominguez III and Internal Revenue chief Caesar Dulay are opposed to his proposal.

“For those of you with big tax cases, Sonny Dominguez, the finance officer; and Dulay, the BIR, I have yet to convince them to compromise,” said Duterte.

The President had earlier challenged cigarette company Mighty Corporation to enter settle with the government for P3-billion than face a tax evasion complaint over its alleged use of fake cigarette stamps. At the time, Duterte had estimated that Mighty owed the government P1.5 billion, so he believed that  it should settle for double that amount.

The President made the challenge after he ordered the arrest of the company owner, Alex Wongchuking for “economic sabotage.” The company agreed in writing to pay P1 billion up front, and the rest, on installment.

Despite this, the BIR went ahead and filed a P9.56-billion tax evasion complaint against the firm and its executives. – Rappler.com

 

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Pia Ranada

Pia Ranada is Rappler’s Community Lead, in charge of linking our journalism with communities for impact.