Senate panel warns BIR over failure to submit tax documents

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MANILA — Senator Juan Edgardo Angara on Tuesday threatened the Bureau of Internal Revenue (BIR) to issue subpoena decus tecum if the agency still fails to submit the projected revenue losses on the proposed bills which aim to lower taxes imposed on the ordinary Filipino people.

Angara made warning after the BIR representatives failed to bring the documents, data and the information during the Senate public hearing on the Senate Bills 2223 and 2227 exempting the marginal income earners (MIEs) from taxes.

”As of now, we’re still giving them the benefit of the doubt. But we’re losing patience here. If they will not give it in two weeks, we’ll have to issue the subpoena,” he warned.

Angara noticed that the BIR was quick to submit the required documents if the proposed measures aim to increase the taxes.

”If we want to help the ordinary people to reduce their taxes, eight months have passed but they still haven’t produced the documents,” he said.

Angara, however, assured the BIR that the Senate will make sure that the proposed tax measures would not affect both the government’s revenue collection effort and the ordinary people to have decent lives.

Under the tax regulations, the MIEs are individuals not deriving compensation as an employee, and are self-employed and deriving gross sales not exceeding Php100,000 in any 12-month period.

The proposed bills filed by Senators Ralph Recto and Paolo Benigno Aquino IV aim to increase the threshold amount or income cap to P150,000 “to provide for inflation and considering the current minimum wage rate.”

”In recognition of the importance of the MIEs to our economy and to alleviate their sorry plight, this proposed bill seeks to exempt MIEs from the payment’s of income tax and value added tax ad to institutionalize their exemption from the registration requirements under the tax code,” Recto said.

During the hearing, the Confederation for Unity, Recognition and Advancement of Government Employees (COURAGE) expressed support to the bill even as they also called for decrease of taxes of wage earners by extending the range subject to a lower tax rate.

”This will lead to increase of net take home pays of government workers who are reeling from the increase of basic commodities and services,” said COURAGE president Ferdinand Gaite.

The Senate employees union also took the opportunity to reiterate their call for the BIR to stop the recently-imposed 32 percent tax on the allowances and benefits of government employees.

The Supreme Court (SC) en banc is expected to decide on Tuesday on the COURAGE’s petition to stop the 32 percent tax, according to Senate employees union president Dakila Millamena.