Gov’t employees in tax row with BIR

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Photo by Joel Leporada/Rappler

Government employees across agencies sought the intervention of the Supreme Court (SC) August 6 to permanently void provisions of a June 2014 revenue order that effectively taxed their “minimal” benefits. Key respondents in the case were Finance Secretary Cesar Purisima and Internal Revenue Commissioner Kim Henares, who issued a new order asking government agencies to tax bonuses, allowances and benefits of the estimated 1 million workers in the bureaucracy. By issuing Revenue Memorandum Order 23-2014, Henares usurped Congress’ power to legislate, said the petitioners which include employee union groups in the 3 branches of government. The government has been aggressive in its tax campaign as it strives to meet revenue targets.

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