News update Philippines gets tough on tax cheats, smugglers

MANILA, July 8, 2010 (AFP) – The Philippines' new government announced Thursday it planned to file one criminal case a week against tax evaders and smugglers as part of its high-profile crackdown on graft.

Finance Secretary Cesar Purisima said he imposed this schedule on the tax and customs bureaus to show how serious President Benigno Aquino's administration was in tackling endemic corruption.

"Every week you will see a case filed, alternating tax evasion with anti-smuggling cases," Purisima told reporters.

"We're working with the Department of Justice to implement the big programmes. Just to put more teeth into them."

Purisima said newly appointed Justice Secretary Leila de Lima had expressed her enthusiasm in helping in the crackdown, adding that this would speed up the process.

He expressed confidence that government revenue agencies would find more than enough people to file cases against under this time frame.

Purisima and other finance officials said that they would also audit various government agencies and corporations to look for "leakages", particularly in agencies whose liabilities had sharply risen in recent months.

Even the salaries of officials of government corporations and agencies will be reviewed to see if they are "reasonable," he added.

Aquino, who took office on June 30, has said his top priority as leader of the Philippines is to eradicate corruption that has infected all sectors of society for generations.

He said it particularly thrived under the nine-year reign of his predecessor, Gloria Arroyo, and has vowed to have her investigated for allegedly corrupt activities.

Aquino said fighting corruption would rake in much-needed revenues to turn around a spiralling budget deficit.