Wanted: Patriotic accountants

Every so often, I get really good reader mail that yields out-of-the-box solutions to our everyday problems. One such comes from Ding dela Cruz. He writes on how we could slug those tax cheats and plug those tax leaks:

"Your commentaries are very timely. Just like the kidnappings in Metro Manila and Mindanao, the budget deficit is pulling the economy down at the same degree

"The only acceptable solution is to collect the uncollectibles.

"You know what? I was just thinking that the traditional approaches of the incumbent Secretary of Finance and BIR (Bureau of Internal Revenue) commissioner will not work the same way as previous approaches failed in plugging the corruption in the BIR and Bureau of Customs. There’s got to be a revolutionary way of plugging (corruption) within the limits of our statutes. Or maybe, Congress should rush passing a bill that would allow revolutionary ways.

"I heard from the radio and read from news clippings that Sen. Ralph Recto is proposing the publication of tax payers and the amount of taxes they paid. While I don’t know the detailed objectives and method of executing this proposal, I don’t think it will ‘click’ as the problems of corruptions are beyond identification of who paid what amount. Instead, acts of corruption are even encouraged or protected by laws.

"One example is tax amnesty. For me, tax amnesty is an evil. And yet, the Executive Department and Congress promote it. If you can only make an inventory of who availed of the previous amnesties, you can have a hint on who availed of it to legalize their tax evasion.

"The laws and administrative orders of Department of Finance and BIR are being circumvented too. Large taxpayers should be reporting to the BIR central office, but… (are allowed) to continuously deal with RDOs. This way, these large taxpayers deal with the old bad guys using old bad ways. Silly excuses for want of not dealing with the central office are accepted.

"I know for one a big group of companies (this is very big, owned by a taipan) who deals with Pasig RDO instead of the main office, I have a strong feeling that this group is a tax evader. Can you imagine VAT remittances being done arbitrarily, kung magkano lang ang gusto? Wow, hindi naman sa kanila yun. They just collect (taxes) on behalf of the government.

Tax returns should have external party certifications

"One revolutionary way that I just thought of is there should be a law that would require external auditors (SGV and the likes) to execute tax certifications. These external auditors can be deputized by the government for a fee (just like SGS at the Bureau of Customs); they, however, will have an obligation to the government. Tax returns will then be responsibilities of the taxpayers as well as the external auditors.

"Of course, this will cover only those companies that are required to hire external auditors. But these companies are really the movers of our economy. Companies appoint external auditors so they can’t accuse the government of unfair practice. All the government needs to do is deputize these external auditors, who by the way, are tax experts.

"The issue of independence that might be invoked by the external auditors to me can be reconsidered in favor of the government as our economic and political conditions are getting worst. We have to check corruption in a revolutionary way.

"When this happens, we hit two things. One is the correct declaration and payments, and the other is the (decreased) exposure of the revenue officers and examiners to arbitrary interpretations.

"Of course, corollary law is needed for the government to deputize good external auditors. Therefore, the taxpayer’s option of choosing external auditors will be limited to the accredited ones. Again, this should be considered in favor of the government as we are in a worse economic and political conditions. This will even help the accounting profession uplift their standards of services.

"I guess it is high time for accountants to do patriotic services."

Another gem of a suggestion comes from Gil Zarcilla, this time focusing on the BIR Regional District Officers (RDOs):

"With regards to our BIR RDOs, I would like to make the following suggestions:

a. Sub-divide each RDO into 10 smaller units or districts.

b. Place them into performance league tables, i.e., first, second, third and fourth divisions. All fourth division RDOs should be replaced by the first division officers and placed under a mentoring scheme.

c. All RDOs should be given personal protection by security service.

d. Triple the salary and benefits of the first divisions, and double those of the second divisions.

e. Work closely with the barangays and share extra revenues; (devise an) award system for information leading to the collection of unpaid taxes."

Reply from the PNCC

Luis Sison, Philippine National Construction Corp. (PNCC) chairman and CEO, sends a reply on the deadly waiting game ongoing with the Alabang Viaduct.

"We would like to correct the impression that PNCC as well as other concerned authorities are playing a deadly waiting game at the Alabang Viaduct. Instead, this is to inform you that we have long assembled the team to respond to the technical and financial concerns of the project, including the validation and updating of earlier studies to assess the structural integrity of the viaduct.

"The works on the Alabang Viaduct is not just a simple case of repair/rehab but it is a very complex facility, requiring assessment of traffic flows over and underneath the structure to assure the motorist at the very least, of an uninterrupted traffic flow during the construction period.

"Which is why the phased project implementation is being prioritized, and an introduction of additional lanes/carriageways prior to rehab works, are being considered at the Technical Working Group level which is spearheaded by the Toll Regulatory Board (TRB) with the assistance of experts and consultants hired by the PNCC, CMMTC and HCII jointly.

"By Wednesday (June 5, 2002), a more definitive construction and/or reconstruction program is set for deliberation and approval of all parties concerned. We will keep you informed of developments."

Still waiting

Obviously, June 5 has passed. But so have months and years since the deadly waiting game at the Alabang Viaduct was called to the public’s attention.

We all have our fingers crossed that this waiting game will not lead into a mass wake.

Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. If you wish to view the previous columns, you may also visit my website at http://bizlinks.linkedge.biz.