MANILA, Philippines - The Bureau of Internal Revenue (BIR) has filed tax evasion charges against former Social Security System (SSS) President Romulo Neri and former Chairman Thelmo Cunanan for underdeclaring their incomes or for not filing income tax returns (ITR).
According to the BIR, Neri earned a total taxable income of P11.3 million in 2008 and P34.2 million in 2009 as SSS president and as SSS nominee on the boards of Philex Mining Corporation and the Union Bank of the Philippines. Yet, the BIR computations show that Neri underdeclared his earnings in 2008 by 88 percent, meaning he only reported P1.4 million and in 2009 by 55 percent or P18.7 million. These translate into a 2008 tax deficiency of P6.29 million and P11.9 million for 2009, coming to a grand total of P18.26 million including surcharges and interests.
Cunanan, on the other hand, was accused by the BIR of ''concealing his true income by his deliberate and willful failure to file his ITR's for taxable years 2005 to 2007.'' BIR alleged that Cunanan earned P15.5 million in 2005, P25.27 million in 2006, and P31.07 million in 2007, mostly from the substantial allowances and benefits as past chairman and member of the boards of First Philippine Holdings Corporation, Belle Corporation, Philex Mining Corporation, and Union Bank. His aggregate tax liability amounts to P42.48 million, including surcharges and interests.
BIR Commissioner Kim Jacinto Henares stated that the BIR's investigation was triggered by the hearings conducted by the Senate Committee on Finance on the huge bonuses and allowances and other benefits of executives and employees of government-owned and controlled corporations and government financial institutions. I hope that more names will follow; otherwise the BIR could be accused of singling out two of GMA's ardent supporters. Commissioner Henares has promised to do that and we will be waiting for results ASAP.
The BIR may also start looking at the characters identified in other investigations of both the House and the Senate. The ''jueteng'' inquiry has come up with a list of ''jueteng lords'' located in all the regions of the Philippines. The inquiry on the fertilizer scam and ZTE scandal also exposed a number of personalities. The list of public works contractors who supposedly overcharged the government as well as suppliers of military equipment is also available. Of course, there are also those whose names came out as having been paid to support candidates in the 2004 elections as well as the 2010 campaign. Using this as the starting point, the BIR can conduct a lifestyle check and link information from other government agencies to show that their incomes were much bigger than what they reported in their ITR's.
If the Supreme Court decides not to allow the Truth Commission to function and Congress is unable to impeach the Ombudsman, the BIR may be the Aquino's administration only weapon to exact some form of justice from those who have stolen from the public coffers or acted in their selfish interests to the detriment of the Filipino people. If my memory serves me right, Al Capone was put to jail on tax evasion and not for his more gory crimes.
Business Bits. The recent Federal Reserve decision to buy $600 billion of US treasury issues should make life more interesting and challenging for central bankers in emerging economies, especially in Asia.
