2 congressmen reject proposal to lift Bank Secrecy Law

House Speaker Feliciano Belmonte Jr. and House Independent Minority Bloc leader Rep. Ferdinand Martin Romualdez expressed yesterday their opposition to the Department of Finance (DOF) and Bureau of Internal Revenue’s (BIR) proposal on lifting the Bank Secrecy Law for tax inquiry purposes.

“I told finance officials (in a recent meeting) that it (bank secrecy lifting) will scare aware businessmen, local and foreign investors,” Belmonte was quoted as saying in a report by Philippine Star.

“My challenge to the BIR is to expand the miniscule tax base of the country, and start with the country’s richest families and those, although ostensibly not rich, who wallow in luxury,” he added.

The Palace’s proposal on the Bank Secrecy Law will not be supported by the Congress, nor will it be approved by President Aquino, Belmonte told The Standard.

“Passing this right now is ill-timed because we have a color-blind government or selective in granting justice and not sincere in prosecuting violators of the country’s laws. This could be used as a tool for persecution or harassment against members of the political opposition. This government has a track record of demolishing the image of its enemies,” Romualdez told the Standard.

“The Speaker was right to reject the proposed measure and I am with him that the government should run after bigtime smugglers, money launderers and tax evaders,” he added.

Section 2 of Republic Act No. 1405 (Bank Secrecy Law) says that “all deposits of whatever nature with banks or banking institutions in the Philippines” are “considered as of an absolutely confidential nature and may not be examined, inquired or looked into by any person, government official, bureau or office, except upon written permission of the depositor, or in cases of impeachment, or upon order of a competent court in cases of bribery or dereliction of duty of public officials, or in cases where the money deposited or invested is the subject matter of the litigation.”

“Any violation of this law will subject offender upon conviction, to an imprisonment of not more than five years or a fine of not more than twenty thousand pesos or both, in the discretion of the court.”