Tax collector to officials: Provide truthful, but modest SALN

CEBU, Philippines - A veteran tax collector has warned public officials against boasting their wealth in their Statement of Assets, Liabilities and Networth (SALN) saying that any increase is taxable under the law.

Estrella Martinez, a Cebuano accountant and a lawyer who spent 32 years with the Bureau of Internal Revenue, made the warning as she is drafting her forthcoming book entitled, Matuwid Na S.A.L.N.

"SALN can make or break a government official, elected or designated," Martinez told The Freeman.

She said the SALN could be a good source of government revenue.

Martinez cited the Tax Code as the basis in the imposition of a 32-percent tax on the "increase in net worth."

"Any increase in net worth is taxable under the Tax Code  – a chilling realization on officials and employees with skyrocketing net worth," she said.

Any increase should always coincide with the income taxes paid in that particular year, she said.

"If we will observe this principle, a lot of public officials would be prosecuted," she said.

Martinez explained that a SALN is a balance sheet of government officials and employees and as such, it should adhere strictly to the general accepted principles of accounting to include cost, consistency, materialism, conservatism, objectivity and full disclosure.

"Truthfulness is not a principle in a balance sheet as cited in Arsenio Reyes vs. CIR, 1958 Supreme Court decision which enunciated that a balance sheet is more consistent than truthful," Martinez said.

She also pointed out that the waiver mentioned in the SALN is a gross violation of Article 6 of the New Civil Code, which provides that rights may be waived, if not contrary to law, public order, public policy, the likes.

Martinez also criticized public officials boasting millions worth of jewelries in their SALN saying they are "digging their own grave" as a government official is mandated by law to be modest in the conduct of their lives.

"I'm surprised why declare millions of jewelries, that's political suicide," she said.

She also said that donated and inherited properties should also be declared in SALN, but as a parenthetical disclosure and not part of the networth.

"Declare properties which are listed in your name, if not in your name, do not declare that," she said.

Martinez also cited the alleged billions of pesos of incoming President Rodrigo Duterte deposited at the BPI.

 She said that is not taxable income but a donation intended for political expenses and should not be declared in the SALN of Duterte.

"There was misapprehension of fact and the law by the person exposing the alleged scam of Duterte," she added.— (FREEMAN)