The taxman cometh

The taxman, rather, the tax lady, cometh  and from the looks of it, she means business. President Noynoy Aquino’s choice as commissioner of the Bureau of Internal Revenue, Kim Jacinto Henares seems well-prepared to take on the herculean task of delivering two-thirds of the government’s revenues in the face of widespread tax evasion, plus corruption and inefficient systems and administration in the agency.

Lawyer-certified public accountant Henares is not new to the game, having served as deputy commissioner to then Commissioner Willie Parayno from 2003 to 2005, during which time she was in charge of the large taxpayers unit that accounts for more than half of the BIR’s collections.

This early, Henares has sent a strong signal about her determination to increase the country’s tax collection rate of only 12.8% of our Gross Domestic Product to at least the same level of 16% average in the region. The signal or “pa-sample” (in street lingo) came last week in the form of a tax evasion case that the BIR filed with the Department of Justice against a prominent businessman who owns a chain of pawnshops.

The fact that the businessman had not, according to BIR records, been paying the correct amount of taxes in the face of his recent acquisition of a luxury sports car obviously caught the eye and ire of Henares. “We find it not just criminal but perhaps immoral for a person who earns profits out of people in need of financial assistance, yet fails to do his civic duty to the country and pay his proper taxes,” Henares said.

Well, the tax lady may just wish to turn her attention to yet another intriguing case of still another prominent businessman who, by the BIR’s own accounts, was one of last year’s biggest taxpayers but is now the subject of a criminal case filed against him for misdeclaration of the price of a property in Nasugbu, Batangas that he bought in August 2009.

From all indications, the businessman whose publicly-listed company is into telecom, media and technology, acquired the real estate property for $1.2 million or roughly P56 million at current exchange rates. However, when he gave the owner a copy of the Absolute Deed of Sale, the latter was shocked to see that the selling price had been altered to a mere P16 million, and her signature had been forged. Despite her demands for the businessman to provide her with a signed copy of the Original Deed of Sale, all she could get was the falsified document. It was on this basis that she filed a criminal case against the buyer, citing the businessman’s obvious intent to evade payment of the proper tax due to the government. This includes, among others, taxes for capital gains, documentary stamp, transfer and registration fees.

With the BIR’s crackdown on the pawnshop owner-sportscar aficionado, I am certain that others who’ve done some magic in their tax returns are hurriedly getting their accountants and auditors to clean up their books — with the connivance of course, of BIR insiders who by now, must also be sweeping their own dirt under the rugs.

If the BIR and the Bureau of Customs deliver the goods to P-Noy’s doorsteps in Malacanang, and in such figures as to stimulate the economy, it just might be the dawning of an era where we, Noynoy’s bosses, can finally expect to get the kind of service and benefits that a healthy national cash flow can bring, the kind that we have not experienced nor seen for the longest time.

In the case of Customs, we hope that the golf score cheating issue that’s been hounding Commissioner Joselito Alvarez since Day One of his appointment is resolved soon. It has, understandably, sidetracked him from focusing on his task of initiating much needed reforms in the bureau. Unfortunately, the controversy will not go away that easily. It has come down to his either relinquishing his post in a magnanimous act of delicadeza or his getting yet another vote of confidence, not only from his immediate boss, Finance Secretary Cesar Purisima but more importantly, from President Noynoy himself.

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On another front, Christian Stewardship Association is producing the 3rd CSA conference on July 24 at Asian Theological Seminary, on the theme “Good governance:  Responsible stewardship for non-profit organizations and churches.”

The conference will feature plenary sessions and break-out seminars with Dr. Manfred Kohl as keynote speaker. Dr. Kohl is an international fundraising guru who stresses the role of the non-profit board in resource mobilization and fundraising. Lawyer Fetan Tangconco will address the non-profit board’s role in securing the future of non profit organizations.  He is the BDO head of legal and government compliance. Participants can also choose to attend the any of the five seminar-workshops on “The role and responsibilities of the board”; “What influences people to give”; “First steps in fundraising”; “Strategic planning for churches and non-profits,” and “The board and fundraising.”

The CSA conference aims to equip church and nonprofit leaders in good governance and strategic leadership. Board members of churches and non-profit organizations can benefit from this learning event. CEOs, denomination heads, pastors and those engaged in fundraising such as resource development officers of NGOs will learn from the experts in the field.

The purpose of CSA is to advance biblical stewardship education and practice among church and the christian nonprofit organizations. This is done by providing training, seminars, conferences and networking opportunities. Since 2000, CSA has equipped fundraisers from various Christian NGOs and para churches in mobilizing resources for the God’s work. Our vision is to see the Philippine Church lacking nothing because people freely give and share.

Registration to the conference is P1,000 inclusive of meals and materials. Organizations which will send six participants will only have to pay for five. Registration fees can be deposited to Christian Stewardship Association, BDO SA account number 16-200-50887 Timog Branch. Fax deposit slip to 9297806 together with name and contact information. You may also contact Zenet Maramara at 0917-8031154.

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My email: [email protected]