Connivance between BIR, big taxpayers seen

Connivance between the Bureau of Internal Revenue (BIR) and several big companies is the reason behind the government’s failure to reach its income targets, according to President Gloria Macapagal Arroyo’s adviser on revenue enhancement. In an interview with GMA News, Narciso Santiago Jr. said BIR officials have constantly ignored his requests for a list of some of the country’s biggest taxpayers and the computation of their taxes. He said the BIR’s failure to comply with his requests is a violation of Administrative Order 236, which transfers the power of the Large Taxpayers’ Service (LTS) to his office. “‘Yung mga lumalabas na malisyosong pananalita na ako nakikipag-away, na kinukuha ko itong power na ito, ito ay pawang kasinungalingan. Natatakot sila na malaman ng Pangulo ang kanilang katiwalian," he told GMA News. (There are news reports saying that I am at war with BIR officials, that I am usurping their power. These are all untrue. The BIR officials are only afraid that their wrongdoings would be exposed.) The LTS includes the top 1,000 corporations in the country, or those who pay taxes of up to P1 million per year.

Ignored requests Santiago, husband of Arroyo ally Senator Miriam Defensor Santiago, said he had repeatedly wrote letters to BIR Commissioner Sixto Esquivias IV, who resigned last Sunday reportedly over health reasons, asking for the LTS documents. He said Esquivias ignored his requests. BIR officer-in-charge Joel Tan-Torres denied the connivance allegation, saying all their actions were in accordance with Palace orders. “We are just following the orders signed by our President and we are awaiting the beneficial results," Tan-Torres said. He maintained that the authority of the presidential adviser on revenue enhancement (PARE) over the LTS is only limited to oversight and policy direction. Tax expert sides with BIR The BIR found an ally in tax expert Benedicta Du-Baladad, who agreed that reviewing taxpayers’ books is an exclusive task of the bureau, which she said is beyond the power of PARE. “If it is an investigation that requires a reopening of the books of the taxpayers, in which case, I think that’s not OK. The taxpayers, under existing rules, are protected under double investigation," Du-Buladad said. “Who is competent to review a tax case? Isn’t it the BIR? Unless of course you don’t trust the BIR," she added. The authority over the LTS has already been the subject of an argument in the Senate budget hearing last month, with Sen. Santiago chiding then BIR chief Esquivias for failing to transfer the power to her husband. In the Senate hearing, Sen. Santiago accused Esquivias of being “possessive" of the BIR’s large taxpayers’ unit. - GMANews.TV