Tax raps under Aquino govt now at 160

MANILA, Philippines – The complaints filed under the name-and-shame campaign of the Bureau of Internal Revenue (BIR) under the Aquino administration has reached 160 on Thursday, April 4. 

The BIR, which collects about 3/4 of the government’s total revenues, added model and TV host Solenn Marie Adea Heusaff, as well as hardware and office supply traders on Thursday in its growing list of erring companies and individuals it filed a case against under its Run After Tax Evaders (RATE) program.

None of the complaints filed before the Department of Justice has led to a conviction, but BIR Commissioner Kim Henares, Finance Secretary Cesar Purisima, as well as President Benigno Aquino III have been persistent in warning taxpayers. 

On March 22, President Aquino warned the nation’s Filipino-Chinese businessmen who are failing to pay the correct amount of tax to stop evading the law or face prosecution.

In the run up to the April 15 tax payment deadline, Henares and Purisima have declared war against the self-employed, such as lawyers and doctors, as well as professionals, in their latest campaign against tax evaders.

Purisima said in a #TalkThursday interview that the country’s gross domestic product could grow by 3% from taxes alone if Filipinos pay the right taxes.

Henares said the filing of cases against tax evaders are already having an effect on Filipinos. In 2012, tax collections grew 14.48% to P1.058 trillion, slightly below the agency’s target of 1.066 trillion. 

Purisima said that they aim to bring the tax effort up from the current 13% up to 16% by 2016.

Improving tax administration instead of increasing tax rates was one of the campaign promises of President Aquino.

April 15 deadline 

Henares reminded Filipinos through a press briefing at the Department of Justice on Thursday that there is no escaping the April 15 deadline in paying taxes.

She said there will no extension of the deadline and all late payments will be fined. 

“Ang plano namin is kelangan magsumikap pa kaming lahat at siguraduhin na ang mga tao na dapat magbayad ng buwis ay magbayad ng tamang buwis [Our plan is to work harder and ensure that people who should pay taxes, pay the right taxes],” the tax chief said.

To stress this, the BIR slapped criminal complaints before the Department of Justice against two businessmen for tax evasion. It said that Kristian P. Soriano and Thomson Ong Lua failed to to settle their tax liability of P101.9 million and P61.16 million, respectively. 

Soriano is a sole proprietor engaged in the trading of various office supplies under the name and business style Natriks Enterprise which is based in Sta. Mesa, Manila, while Lua runs Thompson Hardware & Lighting Center, a distributor of hardware and lighting products, in Mandaluyong City.

The BIR said in a statement that Soriano underdeclared the sales of Natriks Enterprise in 2010. This was validated by a confirmation by the PNP, one of its clients, and certified by the Commission on Audit (COA) that they paid Soriano P133.66 million in 2010. Soriano declared only P935,382.77 in his income tax returns (ITR). 

Soriano’s accountant, Crisanto M. Laguardia Jr., was also charged for clearing Soriano’s financial statements despite the underdeclaration. 

Lua, meanwhile, was charged for tax evasion and his deliberate failure to supply correct and accurate information in his ITR for taxable years 2008 and 2009. He only declared an income of P40.13 million in 2008 and P48.01 million in 2009.

Based on the investigation of the BIR, Lua received P45.11 million in 2008 and P134.71 million in 2009 from clients, such as: 

• SM Investments Corporation
• Makati Shangri-La Hotel and Resort
• Costa del Hamilo, Inc.
• Shang Properties Realty Corporation
• Ayala Land, Inc.
• Megaworld Corporation
• Serendra, Inc.
• North Triangle Depot Commercial Corporation
• Makati Development Corporation
• United Laboratories

– with reports from Cai Ordinario/Rappler.com