BIR to lawmakers: No new tax measures this year

Tax authorities have assured lawmakers that they won't push for new tax measures between now and end of the year. Bureau of Internal Revenue (BIR) chief Kim Henares expressed the assurance before the House ways and means committee, which was hearing the controversial annual information return. Henares told La Union First District Rep. Victor Ortega that the bureau has decided not to introduce any new tax measure during the first 18 months of the Aquino administration. "We are not imposing any new tax measure at least for the first 18 months under President Aquino," Henares said. Lawmakers have criticized the mandatory filing of a report on a private individual's assets, liabilities and networth, which lawmakers claimed would be unconstitutional and unlawful. "We are not passing anything that is [a] new tax… We recognize that the power to tax belongs to Congress," Henares told committee chairman Hermilando Mandanas. Henares also told Valenzuela Rep. Magtanggol Guinigundo that the measure on annual information return was intended "simply to increase taxpayer compliance." The annual information return applies to individuals whose annual income exceeds P500,000, including resident aliens and non-resident aliens engaged in Philippine trade and commerce. Previously, the BIR acknowledged that the measure would capture famous and wealthy individuals who have not been paying the correct tax dues. The annual information return will also by the basis for approving loans, licenses, franchises and other privileges down the line. Earlier, Finance Secretary Cesar Purisima said those who can afford to take out loans are necessarily able to pay the appropriate tax. — JE/VS, GMA News