Presidential bets asked for stand on tax account secrecy lifting

Negros Oriental Rep. Herminio G. Teves, House ways and means committee senior vice chairman, has challenged all presidential candidates to categorically bare their position on the proposed new legislation that seeks to remove the confidentiality of individual and corporate tax accounts.

Teves addressed his challenge to President Arroyo and her rivals: Fernando Poe Jr., Sen. Panfilo Lacson, Brother Eddie Villanueva and former Education Secretary Raul Roco.

"The candidates are duty-bound to declare openly and unconditionally whether or not they intend to endorse the lifting of the secrecy of tax accounts," Teves pointed out.

"Voters are entitled to know whether or not the aspirants are in favor of spotless transparency in tax compliance," he added.

A Tax Code provision prohibits the Bureau of Internal Revenue (BIR) from divulging the details of a taxpayer’s account, including his or her income tax return.

Teves and other senior members of Congress want the provision revoked to promote absolute transparency in tax collections and discourage connivance between corrupt BIR examiners and unscrupulous taxpayers in understating taxable income.

They have introduced House Bill 2716, which seeks to require the BIR to publish an annual report of all taxpayer accounts. The report, in book form, shall contain such details as name of individual or enterprise, type of business, taxable income, gross sales or receipts, amount of taxes paid by type of tax and presumptive input tax.

"We maintain that one sure way to strengthen tax compliance and deter collusion in (tax) evasion or avoidance is to make all taxpayer accounts part of the public record, for all to see and scrutinize," Teves said.

Department of Finance officials have objected to Teves’ proposal, saying it would render wealthy taxpayers vulnerable to kidnappers and other criminal elements and expose trade secrets of business enterprises.

Teves, however, dismissed the argument as "foolish".