Solons thumb down lifting of bank secrecy law for tax purposes

Administration and opposition lawmakers crossed party lines yesterday as they vowed to block the passage of a proposal seeking to lift bank secrecy for tax purposes.

Speaker Feliciano “Sonny” Belmonte Jr., and House Independent Bloc Leader and Leyte Rep. Martin Romualdez said the anti-tax evasion measure being pushed by the Bureau of Internal Revenue (BIR) would shoo away businessmen and could be used as “a tool for persecution or harassment against members of the political opposition.”

“I am against it because this will scare off local and foreign investors,” Belmonte said as he rejected the BIR’s proposal.

Even as he recognizes that the proposal is “good and very laudable for transparency and accountability,” Romualdez warned that its passage will be misconstrued as the administration’s act of persecuting the political opposition.

“Passing this right now is ill-timed because we have a color-blind government or selective in giving justice and not sincere in prosecuting violators of the country’s laws,” he said.

“This could be used as a tool for persecution or harassment against members of the politi-

cal opposition. This government has a track record of demolishing the image of its enemies,” he added.

Buhay Hayaang Yumabong (Buhay) Party-list Rep. Lito Atienza also sees the measure as a political tool for persecution.

“I would support that under a different condition, kapag nakikita mong fair play ang labanan, ngayon peligroso. I am not in support now because this can be used politically. We can’t do this under a regime behind selective justice, mabigat iyan. Kawawa naman ang oposisyon,” he said.

Marikina Rep. Miro Quimbo, chairman of the House Committee on Ways and Means, had earlier said they will urgently deliberate on the BIR’s proposal after Commissioner Kim Henares disclosed that they are preparing the draft bill to be submitted to the Department of Finance (DOF).

“We will tackle the bill soonest. I am personally willing to sponsor the bill so it can be discussed immediately. If it is truly the solution for BIR to finally meet its targets, then we should take a look at it seriously,” he said.

Quimbo also said there is no reason for the current administration not to support the measure seeking to lower personal and corporate income taxes.

“One thing is for sure, the status quo is unacceptable. We cannot let our ordinary salaried worker keep shouldering 90 percent of the tax burden while the rest of the entrepreneurs and professionals do not pay taxes,” he said.

Henares said they are amenable to measures lowering income taxes of fixed-income earners if Congress could ease the restriction on bank accounts for “tax purposes” before President Aquino steps down in June 2016.

She noted that the Philippines is one of the three countries in the world that still have restrictive banking laws. (Charissa M. Luci)