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BIR admits it demanded Marcos family for estate tax, Bongbong cries 'fake news'

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BIR admits it demanded Marcos family for estate tax, Bongbong cries 'fake news'
In a report, the BIR said preliminary figures show the agency reached its target of collecting P2.08 trillion in 2021, beating by about seven percent the 2020 total of P1.95 trillion.
BW file photo

MANILA, Philippines — The Bureau of Internal Revenue confirmed it sent a written demand to the Marcos heirs regarding the payment of their estate tax liabilities amounting to P203.8 billion, the political party of Manila City Mayor and presidential candidate Isko Moreno disclosed Wednesday. 

In a letter addressed to Aksyon Demokratiko Chairman Ernesto Ramel Jr., BIR Commissioner Ceasar Dulay said his office “did send a written demand to the Marcos heirs on December 2, 2021, regarding their tax liabilities.”

Dulay’s letter dated March 14 was received the following day, March 15, at Moreno's campaign headquarters. Aksyon Demokratiko released the letter to the media on Wednesday, March 16.

At a campaign stop in Silay City, Negros Occidental, Moreno Domagoso thanked Commissioner Dulay for sending a demand letter to the Marcos heirs, saying they have yet to pay the P203-B estate tax liability they owe the Philippine government. 

“We have received the copy of the letter of Commissioner (Cesar) Dulay of BIR that they wrote on December 2, 2021, urging the Marcos family to pay their taxes because this is what they rightfully owe,” Moreno told reporters in Silay Plaza shortly before embarking on a motorcade. 

As in past administrations, the BIR's admission that it indeed demanded the tax means Marcos' tax liabilities did not prescribe under the Duterte administration.

Moreno pointed out that while the current BIR commissioner did his job last December, there is a possibility that the P203 billion tax liability of the Marcos heirs will not be collected and will eventually be waived should another Marcos become president in May. 

“Now, there is a challenge. There is a rule that we checked that after five years if nothing is rewritten or prescribed, all that will be waived. Now, if that is the case, if that family is elected and they run the government for six years, the P200 billion will be for nothing,” Moreno warned. 

READ: Marcos claim on assessment of unpaid estate tax inaccurate, PCGG tells Isko camp

Marcos camp cries 'fake news'

How much is owed, exactly? Citing findings by a Special Audit Tax Team from the BIR, the Presidential Commission on Good Government, the agency created to recover ill-gotten wealth from the Marcoses and their cronies, said that the tax bureau determined the following liabilities in 1991:

  • Deficiency Estate Tax Assessment against the Estate of Ferdinand Marcos in the amount of P23,293,607,638.
     
  • Deficiency Income Tax Assessments against Ferdinand Marcos and Imelda Marcos in the aggregate amount of P184,159,289.70 for the years 1985 to 1986
     
  • Deficiency Income Tax Assessment against Ferdinand Marcos Jr [for the years] 1982 to 1985 in the aggregate amount of P20,410.

At the Kapihan sa Manila Bay session earlier Wednesday morning, Marcos — whose camp falsely claimed that collection was put on hold because it was unclear how much they should pay — said it was an issue of fake news. 

"There’s a lot of fake news involved there, let’s leave it to the lawyers to discuss it because the so-called facts that they quote are not facts at all,” Marcos said when asked about the estate tax issue.

"They are just presumptions, they are not familiar with the cases or they choose not to be familiar with the case so yeah, it’s in the courts...In my case whatever the court orders me to do, I will do."

Retired Supreme Court Senior Associate Justice Antonio Carpio told reporters that the assessment of the tax owed is "already final and inappealable, regardless of any error in the computation."

"This is like income from illegal sources like stock manipulation or theft - the income is still taxable even if later on the stock manipulator or thief is convicted and ordered to reimburse. In estate taxation, the gross estate includes assets in the name of the deceased and claimed by the heirs as part of the estate," he said. 

"The PCGG letter shows that the BIR and PCGG had no intention of suspending or delaying the collection of the estate tax which they admit has already become final, executory and inappealable.  They agreed that the estate tax will be collected first from Marcos assets that are not in custodia legis to maximize the collection of the government. If the Marcoses are later declared owners of the assets in custodia legis, then the BIR will just execute on such assets."

Moreno vowed that if he becomes president, he will see to it that the P203-B Marcos tax liability will be collected by his administration and will be used for Filipinos affected by the COVID-19 pandemic.

He said he would use the money as “ayuda” or cash assistance to ordinary Filipinos who lost their jobs and who are now reeling on the continuous rise in fuel prices that would eventually affect the cost of electricity and other basic commodities.

“Sadly, almost all of us, the general population, pay taxes. The call center agents, who pay taxes at that time, pay taxes. I think the sauce for the goose is sauce for the gander. That is, there must be a certainty,” Moreno said.

Moreno camp on the offensive vs Marcos' tax issues 

To recall, Ramel on March 7 wrote the BIR chief to inquire if his office has renewed written demands on the Marcos heirs to pay their tax liabilities. 

“The BIR, which you now head, must renew written demands on the Marcos heirs to pay these tax liabilities once every five years, otherwise they prescribe and become uncollectable. Past administrations under Presidents Ramos, Arroyo and Aquino have faithfully issued such written demands,” Ramel said. 

Ramel pointed out that former President Ferdinand Marcos Sr. died on Sept. 29, 1989, almost 32 years ago. “His heirs - did not file the estate tax return with the BIR as required by law. Neither did they pay any estate tax.” 

Ramel had earlier said the Marcos family’s avoidance to pay the estate tax is a clear demonstration of “abuse of power, disregard for the laws enforced by the government and lack of respect to citizens who religiously pay their taxes imposed on them.” 

On Monday, the Presidential Commission on Good Government denied the claim of the spokesman of former Sen. Ferdinand Marcos Jr. that the issue on the P203 billion tax liabilities of the Marcos heirs is under discussion by the PCGG and BIR. 

Ramel said the PCGG rebuff of Atty. Rodriguez is another proof that the camp of Marcos Jr. has again lied as they always do in so many issues about their family, including their ill-gotten wealth.

— Franco Luna with a report from Kristine Joy Patag 

2022 ELECTIONS

BUREAU OF INTERNAL REVENUE

ISKO MORENO

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