BIR goes after Makati for P1.2-B tax evasion case

The Bureau of Internal Revenue's P1.2-billion tax evasion case against Makati City is directed against the local government and not on its former mayor, Vice President Jejomar Binay. BIR Commissioner Kim Henares made this clarification Wednesday when asked to comment on fears that the tax evasion case may be compromised because of Binay's new political role. "The case is against the city of Makati. It's an assessment on the city of Makati for taxes they did not remit. It's not against an individual on his individual capacity. Whether or not Vice President Binay has other tax liabilities, it is really a separate issue other than the issue of collecting taxes from the city of Makati," Henares said. The BIR had assessed that Makati City owes the national government P1.2 billion in withholding and value added taxes that the local government failed to remit from 1999 to 2004. Henares said that Binay had discussed the case with the BIR when he was still Makati mayor, but since he became vice president, he has not contacted the BIR chief or any BIR official regarding the case. Henares said that the BIR has an ongoing discussion with the Makati City Treasurer "as to when and how they would pay the national government." "They should pay us those taxes," Henares said, adding that the Makati City government is interested in settling the case. —JE/VS, GMANews.TV