50 billionaires, 42,500 millionaires not paying proper taxes

[hagiber]

50 billionaires, 42,500 millionaires not paying proper taxes’
By Jose Rodel Clapano
The Philippine Star 10/13/2004

At least 50 billionaires and 42,500 millionaires in the country are not paying the correct taxes, a spokesman for the Filipino Chinese Chamber of Commerce and Industry (FCCCI) told the Senate yesterday.

Guillermo de Joya told the Senate committee on ways and means that after a series of "highly confidential and privilege communication" he had with the billionaires and millionaires, they have committed to avail themselves of any tax amnesty offered by the government.

De Joya claimed the 50 billionaires and 42,500 millionaires who are not paying the correct taxes are pure Filipinos, Chinese and Chinese-Filipinos whose businesses are based in the country.

De Joya was among the resource people invited by the Senate committee led by Sen. Ralph Recto over the proposal of the Department of Finance (DOF) to impose a three percent tax amnesty rate.

Although the billionaires and millionaire businessmen are not properly declaring their true net worth in their income tax returns (ITRs), De Joya said "they would be very willing to state and declare their net worth at true value" if the DOF proposal is made into law and implemented.

"But then, if the three percent (as proposed by the DOF) would be strictly adopted, it would be very likely that they would still be part, whatever is due at one percent, but declaring a net worth much less," he said.

According to De Joya, there are at least 50 billionaires having at least P1 billion in assets; 7,500 businessmen with assets of P100 million each; 15,000 businessmen with P50 million assets and 20,000 each with at least a million pesos worth of assets and are engaged in the so-called "underground economy," or non-traditional businesses.

During the hearing, Sen. Sergio Osmeña III asked De Joya to identify the billionaires and millionaire tax evaders but the spokesman refused, citing privileged communication.

"Sir, we get their names (50 billionaires) on a very confidential and best effort basis and we have that privilege communication and we cannot and I don’t think we should do that because insofar as we are concerned, that is a privilege communication," De Joya said.

De Joya stressed the multi-millionaire tax evaders may avail of the three percent tax amnesty rates proposed by the DOF but this might destroy their data base.

"They (tax evaders) will file, instead of a billion, probably P330 million or at three percent, they will still pay P10 million," he said.

Osmeña claimed there was an apparent loophole in De Joya’s statement, pointing out the flawed logic in deflating one’s net worth.

"I’ve thought that the reason for filing of tax amnesty is to cover up the illegal income that they have amassed in the past. But (which) they have paid taxes on," Osmeña said.

"So why would he be motivated to deflate his net worth. If anything, he would be motivated to inflate his net worth," he said.

Osmeña said the intent of establishing a base on the very first statement of assets and liabilities and net worth of a taxpayer is to catch the next year’s increment in net income.

On the other hand, Sen. Juan Ponce Enrile said it was apparent that the Bureau of Internal Revenue (BIR) was not able to discover the anomaly.

"Are we saying here that you have not encountered these people over time? These 50 billionaires, one of you people has (not) even encountered anyone of them? (Nor) the other 20,000 millionaires?" Enrile threw the question before the BIR officials during the hearing.

The BIR officials led by Deputy Commissioner Lilia Guillermo replied that they are constantly upgrading their tax mapping activities.

"We are more than willing to know who these people are," Guillermo said.

The members of the Senate committee were also unconvinced with statements of the DOF claiming it has revised the revenue target from the tax amnesty to a range of P8 billion to P20 billion.

Finance Undersecretary Emmanuel Bonoan told the committee that the imposition of a three percent tax amnesty rate will yield a low estimate of P8 billion in revenues, or at medium estimate of P13.86 billion and a high of P20.46 billion.

"We revised (yesterday) morning the estimated revenues from the tax amnesty... After conferring among ourselves, we err on the more conservative side to the low of P8 billion to a high of P13.86 billion." Bonoan said.

However, he failed to explain the details of the revenue projection.

But he said the revenue estimates were based on a survey of the 2000 taxpayer database which showed total taxpayer assets of P11.8 trillion and total net worth of P4.4 trillion.

Of the P4.4 trillion total net worth, Bonoan said 90 percent or P3.96 trillion belongs to large taxpayers with the remainder to the medium and small taxpayers.

Bonoan claimed large taxpayers failed to pay an estimated P54.052 billion in corporate income taxes or 1.44 percent of the total P3.96 trillion net worth.

[pajerokid]

Now you know why they became rich :bwahaha:

[odell]

matindi din pala ang style nila.. magaya nga .haha

[GlennSter]

Originally posted by odell
matindi din pala ang style nila.. magaya nga .haha

haaay.baluktot ka talaga mag isip bata ka.

[chieffy]

galit ang magnanakaw(politicians) sa kapwa magnanakaw(billionaire tax evaders)...

[jolog1]

and 20,000 each with at least a million pesos worth of assets and are engaged in the so-called "underground economy," or non-traditional businesses.

Is this really worth mentioning? P1 million pesos is only $17,700. Wala pang isang Pajero yan eh. "worth of assets" pa to no? Hindi cash or liquid asset.

Sa lahat ng mga multi-millionaires and billionaires, ilan kaya ang government employees, army, or police?

[glntVR]

baka kasi hindi nila mapagkatiwalaan ang pera sa goverment. kaya ayaw i declare lahat!