By Ina Reformina, ABS-CBN News
Batangas 2nd District Rep. Hermilando Mandanas filed with the Supreme Court (SC) this morning a petition for certiorari, mandamus and prohibition against government’s alleged misappropriation of Internal Revenue Allotment (IRA) funds for local governments.
In his 23-page petition, Mandanas asked the high court to issue a temporary restraining order (TRO) and/or writ of preliminary injunction on the Aquino Government’s General Appropriations Act (GAA) for 2012, specifically on some P60.75 billion appropriations for capital outlays which he said, is taken off the IRA.
“The National Government, in the persons of the Respondents, should automatically release the Internal Revenue Allotments (IRA) or the just shares of the Local Government Units (LGUs) in the national taxes as determined by law. The unreleased amount due to the Provinces, Cities, Municipalities and Barangays from 1992 to 2012 has already reached P500 billion. Compliance by the National Government with the Constitution and existing laws will enable the LGUs to efficiently and expediently serve the Filipino people, and hasten the delivery of much needed and long delayed basic services,” Mandanas said.
“Hiling natin ay kilalanin at i-automatic release ang IRA… labag sa batas na ginagamit yung [IRA] dahil ang pondong yun ay dapat sa local governments,” he added.
His petition stated that the automatic release of the IRA to the LGUs is “clearly provided for in Sec. 6 of Art. X of the Constitution” which states:
“Local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them.”
He further claimed that Sec. 284 on Allotment of Internal Revenue Taxes of Republic Act(RA) No. 7160 (Local Government Code), clearly defines “just share” regarding the IRA.
The said section states:
“Sec. 284. Allotment of Internal Revenue Taxes. Local government units shall have a share in the national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year, as follows:
a) On the first year of the effectivity of this Code, thirty percent (30%);
b) On the second year, thirty five percent (35%);
c) On the third year and thereafter, forty percent (40%).”
“It is clear that the legally mandated revenue base to compute the IRA should include the entire national internal revenue taxes collected annually,” Mandanas said.
The national internal revenue taxes, according to Mandanas, are specifically enumerated in Sec. 21 of RA 8424 (National Internal Revenue Code):
“Sec. 21. Sources of Revenue. – The following taxes, fees and charges are deemed to be national internal revenue taxes:
a) Income taxes;
b) Estate and donor’s taxes;
c) Value-added tax;
d) Other percentage taxes;
e) Excise taxes;
f) Documentary stamp taxes; and
g) Such other taxes as are hereafter may be imposed and collected by the BIR (Bureau of Internal Revenue).”
The petition also stated that the Bureau of Customs (BOC) collects national internal revenue taxes such as value-added tax(VAT), excise taxes, and documentary stamp taxes on imported goods as an agent of the BIR, as provided for in Sec. 12 of the National Internal Revenue Code (NIRC).
“However, the BIR has not been including the collections of the BOC of the national internal revenue taxes in the legally mandated revenue base to compute the IRA for the LGUs since 1992 up to 2012. And when included in accordance with the Philippine Constitution and other applicable laws, then the LGUs should receive P498.85 billion or very close to P500 billion,” Mandanas said.
In seeking immediate temporary relief from the high tribunal on the P60.75 billion capital outlay appropriation, Mandanas said: “This amount is equivalent to the IRA for the LGUs in accordance with law that has been misappropriated by the National Government in the 2012 GAA. And if the unconstitutional release of the P60.75 billion is not restrained by the Supreme Court, then again the misuse of Local Funds for National Projects will go unabated.”
Mandanas, meantime, denied his petition against Executive Secretary Paquito Ochoa, Budget Secretary Florencio Abad, Finance Secretary Cesar Purisima, BIR Commissioner Kim Henares and National Treasurer Roberto Tan was in retaliation for his ouster as House Ways and Means Committee Chairman for his refusal to sign the impeachment complaint against Chief Justice Renato Corona.
“Nag-file din naman ako ng kaso dati against the administration of Pres. Gloria Arroyo, nanalo ako noon and some P60 billion in IRA was released to the local governments. Nagfile ako uli ngayon sa Aquino administration dahil patuloy ang paggamit sa IRA ng national government,” he said.
Mandanas filed the petition along with 8 local officials. His lead counsel is former Aquilino Pimentel, Jr., author of the Local Government Code.
PINOY SNIPER 