BIR has too few people to run after usurers

CEBU, Philippines – The officials of the Bureau of Internal Revenue in Cebu City cannot act on the request of councilor Nida Cabrera to run after informal moneylenders unless the concerned local government unit will assist them.

Zenen Tabanao, head of the BIR's Special Investigation Division, said their agency lacks manpower as his office alone only has five personnel while its juris-diction covers the cities of Cebu, Mandaue and Talisay.

Tabanao explained that with the limited number of personnel in his office he cannot initiate his own case against the usurers for possible tax evasion, but will just rely on complaints with supporting documents.

BIR public information officer Bel Suelto Jr. supported Tabanao by saying that while they were tasked to intensify the so-called Run After Tax Evaders pro-gram they might not be effective without enough personnel.

According to Tabanao the city officials like Cabrera should also help by providing the BIR with the names of those who are engaged in lending without a proper permit, including some Indian nationals.

Cabrera, a resident of Barangay Luz where the BIR regional office is situated, wants the BIR to make the initiative so these informal moneylenders can be taxed by the government.

She received reports that many persons, some of them Indian nationals, are engaged into usury or what is called "5-6" in Cebu City and other parts of the prov-ince.

Some of the charge interest rates up to 20 percent, meaning that for every P100 loaned the one who availed of the loan will pay P20 in interest every month, which is too high compared to banks and other legitimate lending institutions.

But many still avail of these loans because they feel the payments are minimal because these are collected everyday and usurers do not require collateral from their clients. (FREEMAN)