Countering the immigration crisis

Immigration continues to trend as a major political issue in different parts of the world.

In the US, an immigration policy overhaul with a promise of deporting millions of undocumented immigrants became the central feature of President Trump’s campaign for his return to the White House. In Europe, unauthorized migration is being linked to an upsurge in crimes, stirring up anti-immigration sentiment and resulting in member states introducing stricter policies.

In the Philippines, there was also no shortage of frustrating headlines related to illegal immigration. Criminal activities including money laundering, cryptocurrency scams, illegal land ownership and human trafficking were uncovered, allegedly perpetrated by undesirable aliens and fake Filipino citizens. The comprehensive probe into these issues placed incredibly high pressure on the immigration authorities that led to a sudden change in leadership, review of appointments and efforts to ramp up intelligence.

Strict compliance with a country’s immigration regulations can deliver a reliable accounting of foreign nationals in that country and lead to an improved monitoring of foreign investments, a better understanding of the labor market and prevention of unauthorized employment in positions that citizens could be occupying.

It can improve tax compliance and help ensure that foreign nationals working and residing therein contribute to the country’s revenues. It can also promote transparency in the financial activities of foreign nationals and help detect illegal activities such as money laundering or tax evasion.

While most of the Philippine immigration compliance required for foreign nationals take place prior to or upon arrival, there are still measures in place to monitor their activities and continued presence in the country, one of which is called the Annual Report. This program, which runs from Jan. 1 to March 1 of each year, requires all registered foreign nationals (i.e., holders of the Alien Certificate of Registration card including voluntary registrants) to report to the Bureau of Immigration (BI) office and update their information. Through this process, the BI can keep track of who is legally residing in the country and whether they are complying with the conditions of the visa they are holding.

Another measure is the conduct of operations based on mission orders on suspected acts of violation by foreign nationals in an identified establishment. During an authorized operation, foreign nationals within the premises of the establishment may be subject to investigation and asked to present their valid immigration documentation to officers for verification. The raids on suspected illegal offshore gaming operations were conducted based on these mission orders. Recently, the bureau reported that a manhunt has been ordered for the remaining foreign workers from such operations who were required to leave the country by the end of 2024 but have not complied.

The hearings conducted by the Senate and the House of Representatives may have strained the bureau’s resources, but they were necessary to uncover loopholes in the system, hold officials accountable and create opportunities to advance strategies and intelligence to secure our borders.

Just as equally important, foreign nationals and their Philippine sponsor entities must closely monitor their continuing compliance requirements based on updated rules and regulations and take steps to correct any irregularity as early as possible. Ultimately, the fight against illegal immigration and the protection of national security must be a shared responsibility between the government and the public.

Jozette Issel Dizon is a Partner from the Tax Group of R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The firm has been recognized as a Tier 1 in Transfer Pricing Practice and in General Corporate Tax Practice by the International Tax Review. For more information, you may reach out to Jozette Issel Dizon or Karen Jane Vergara-Manese through [email protected], social media or visit www.home.kpmg/ph.

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International or R.G. Manabat & Co.