Senate fails to amend AMLA

AMITA O. LEGASPI, GMA NEWS
In two days, remittances from overseas Filipinos could be subjected to stringent scrutiny by monetary authorities of other countries, Sen. Teofisto Guingona III warned in his manifestation during the Senate plenary session late Wednesday.

Guingona sounded the alarm after the Senate on Wednesday failed to approve a bill amending and strengthening the Anti- Money Laundering law.

Senate Bill 3123 seeks to widen the scope of AMLA to include reporting entities, a broader definition of money laundering, and encompass predicate crimes such as bribery, malversation of public funds, human trafficking, tax evasion and crimes against the environment.

With the bill unpassed and the law unmodified, other countries may decide to include the Philippines on the Financial Action Task Force’s blacklist – also called the list of Non-Cooperative Countries or Territories or NCCTs.

“Mr. President, in two days, the Financial Action Task Force will decide whether or not our efforts against the global fight against corruption and criminal money are enough,” the senator said in his manifestation, addressing Senate President Juan Ponce Enrile.

FATF is a standards-setting, inter-governmental body that aims to promote effective implementation of legal, regulatory and operational measures against money laundering, terrorist financing, and other related threats to the integrity of the international financial system.

As a policy-making body, it strives to generate the necessary political will to bring about national legislative and regulatory reforms.

The task force comprises 34 member jurisdictions or countries and two regional organizations, the European Commission and Gulf Cooperation Council, representing most major financial centers worldwide.

‘Commitment… not supported’

Failure to comply with FATF sends “a strong message to the international community that the Philippines’ commitment against criminal money is not supported by a strong will to establish the correct policies and laws against those who steal from the government, those who profit from the destruction of the earth, from those who rob individuals and corporations alike,” Guingona said.

Sen. Sergio Osmeña III, chairman of the Senate committee on banks, financial institutions and currencies, said FATF is now meeting in Paris, France, and the deadline for the Philippines to approve the bill is on Friday, Oct. 19. But the Senate already adjourned on Wednesday, Oct. 17, and is scheduled to resume its session on Nov. 5.

Some senators deliberately blocked the passage of SB 3123, Osmeña said, without divulging any names.

During the plenary debates late Wednesday, however, Sen. Ferdinand Marcos Jr. said there were still many issues that needed to be clarified.

“It is a very complicated bill and it is very important but it is very intrusive in the economic life of the whole country,” said Marcos.

“We’re not operating in an idea that there is a deadline, but we will work and continue to deliberate it. As I said it is too complicated for me,” he added.

On Tuesday, Sen. Joker Arroyo said he had asked for additional documents regarding the changes, but did not specify what these were.

Remittances by overseas Filipinos contribute to the country’s consumer-led economy, making it resilient and less vulnerable to external shocks by boosting consumer spending.

According to the Bangko Sentral ng Pilipinas, total remittances for the first half reached $10.13 billion, up by 5.1 percent from $9.64 billion in the same period last year. Remittances totaled $20.1 billion in 2011.

In January to June, money transfers by Filipinos were sent largely from the United States, Canada, Saudi Arabia, Japan, the United Kingdom, Singapore, and the United Arab Emirates.

‘Running against time’

Guingona said he had hoped that lawmakers would recognize the inherent weakness of the country’s Anti-Money Laundering Law and exert the necessary efforts to improve it.

“… SB 3123 was sponsored on May 16, 2012. One hundred fifty-five days have passed since this bill was sponsored, and it has been on the agenda for 20 days, but it sadly still remains on the floor today,” he said.

“I hope that we can strengthen our efforts to improve this bill and pass it at the soonest possible time,” he added.

Once the Philippines is blacklisted and tagged as an NCCT, the FATF and its member-organizations will start global-wide sanctions against Philippine-related financial transactions such as stringent documentation and other requirements and closer, if not restrictive, scrutiny of all related transactions.

Also, transactions with Filipino individuals and corporations might be examined more strictly because of suspicions that these could involve money laundering.

Guingona said lawmakers owe it to every Filipino citizen who wants to see the government effectively win in the fight against corruption and dirty money to pass the bill immediately.

“We cannot be remiss in that duty. Not now,” he said. — VS/YA, GMA News

BIR files P59.9m tax evasion charges against Pampanga based businessmen

The Bureau of Internal Revenue today filed tax evasion cases worth P59.9 million at the Department of Justice against three Pampanga-based businessmen, two are concessionaires of the Philippine Amusement and Gaming Corporation in Angeles City and one against an eye doctor who also owns a clinic and a pharmacy.

The BIR is suing Dr. Noel J. Lacsamana, sole proprietor of Lacsamana Eye Clinic, IEC Eye Center and IECON Pharma& Medical Services for P7.08 million in taxes for attempting to evade the payment of income tax and for failing to supply the BIR with correct and accurate information in his tax returns, or violation of sections 254 and 255 of the National Internal Revenue Code.

The BIR used third party information from entities such as the PhilHealth and other private hospitals.

In its investigation, the BIR learned that Dr. Lacsamana earned a total of P7.08 million from Philhealth alone in 2007 and 2008. Private patients and customers also paid him a total of P2.626 million in the two-year period. Lacsamana, however, declared only P2.626 million in gross receipts for from 2007 to 2008 for a substantial underdeclaration.

According to the BIR Dr. Lacsamana paid only P1,604 in income tax for the two year period despite substantial earnings from his medical practice and other businesses.

The BIR also filed tax evasion charges against PAGCOR concessionaires in Angeles City—Yolanda Macabulos, sole proprietress of Luring’s Barbecue Franchise, and Maila Baluyot Laxamana, sole proprietress of Fracojan Catering Services.

The BIR is suing Macabulos for P45.31 million in deficiency taxes, including surcharge and interest, broken down into P32.17million deficiency income tax and P13.14 million in deficiency value added tax.

Macabulos is being charged for violation of sections 254 and 255 of the NIRC or willful attempt to evade taxes and willful failure to supply correct and accurate information in her income tax return for 2009, 2010 and 2011 and value added tax return from the fourth quarter of 2009 and for 2010 and 2011. He also failed to file value added tax returns for the second and third quarter 2009, itr from 09 to 2011 and vat from 4q 09 and 2010 and 2011, and willful failure to vile VAT returns for 2q and 3q 09.

PAGCOR certified that it paid Macabulos a total of P56.88 million from 2009 to 2011 but Macabulos only declared sales of P16.41 million, resulting in a substantial underdeclaration.

Macabulos’ total tax deficiency of P45.308million can be broken down into P32.17 million in deficiency income tax and P13.14 million in deficiency VAT.

Laxamana is also being sued for violation of sections 254 and 255 of the NIRC, or will attempt to evade taxes and willful failure to file percentage tax returns and register as a VAT taxpayer.

Based on PAGCOR’s certifications, Laxamana paid her a total of P15.65 million for 2010 and 2011 but she declared an income of only P7.53 million in 2011 and did not file a return for 2010.

For 2010, Laxamana’s sales amounted to P4.08 million and should have registered as a VAT taxpayer as her sales were already higher than the P1.5 million requirement. Her deficiency income tax can be broken down into P6.84 million in deficiency income tax and P2.61 million in deficiency VAT.

BIR files P240.31-M tax evasion raps vs. supplier of popular food chain

The Bureau of Internal Revenue (BIR) on Thursday filed before the Department of Justice (DOJ) a P240.31-million tax evasion case against Great Wall Promotionals Company, Limited (Great Wall) and its executives, the supplier of Jollibee Foods Corporation (Jollibee).

In a press conference, BIR Commissioner Kim Jacinto-Henares said that Great Wall and its officials failed to supply correct information in its Income Tax Return (ITR) for taxable year 2008 in violation of Sections 254 and 255 of the National Internal Revenue Code (NIRC) of 1997.

Great Wall is a partnership duly registered with the Securities and Exchange Commission (SEC) whose principal office is located at National Rd., Sta. Cruz, Zambales.

Henares identified those charged as Carlito Pancho, Flordeliza Casimiro, George Co, Jr. and Roberto Co.

Investigation showed that Great Wall had reported total sales of P1.47 million in its ITR and Quarterly Value Added Tax (VAT) returns for taxable year 2008.

However, verification of its reported income with Jollibee showed that Great Wall received from the former income payment amounting to P266.48 million.

Comparing the information received from Jollibee with its declarations with the BIR, investigators found that Great Wall deliberately failed to declare its correct tax base by substantially underdeclaring its income for 2008 by 18,076.26% or by P265.01 million.

Under Section 248 (B) of the NIRC, a substantial underdeclaration of more than 30% constitutes prima facie evidence of fraud tantamount to tax evasion.

Henares said that for taxable year 2008, Great Wall was slapped with a total deficiency tax assessment of P240.31 million, inclusive of surcharges and interests, broken down as P173.81 million in Income Tax; and P66.50 million in VAT.

The case against Great Wall, Pancho, Casimiro, George Co, and Roberto Co is the 85th filed under the BIR’s Run After Tax Evaders (RATE) program. (PNA)

Supreme Court sustains conviction of Abu Sayyaf men behind kidnapping of nurses

The guilty verdict against 17 Abu Sayyaf men behind the kidnapping of hospital workers in Basilan province a decade ago has been sustained by the Supreme Court, GMA News reported.

The SC’s Second Division denied with finality the appeals of the accused, who were already convicted for the kidnapping of nurses Ediborah Yap, Shiela Tabunag, Reina Malonzo, and hospital accountant Joel Guillo in June 2001 at the Jose Maria Torres Memorial Hospital in Lamitan, Basilan.

In a resolution, those convicted were Urban Salcedo alias Wahid Guillermo Salcedo, Abdurahman Ismael Diolagla alias Abu Sahrin, Abdulajid Ngaya alias Abu Ajid and several others.

Also convicted were Haber Asari alias Abu Habs, Absmar Aluk alis Abu Adzmar or Abu Aluk, Bashier Abdul alias Abu Jar, Toting Hano alias Abu Jakaria, Jaid Awalal alias Abu Jaid, Mubin Ibbah alias Abu Black, Annik/Renne Abbas alias Abu Annik, Margani Hapilon Iblong alias Abu Nadim, Lidjalong Sakandal/Sabandal, Imran Hakimin y Sulaiman alias Abu Imran, Nadzmer Isnani Mandangan alias Abu Harun, Kamar Jaafar alias Abu Jude, Sonny Asali alias Abu Teng or Abu Umbra, and Bashier Ordonez alias Abu Bashier.

The 17 men abducted the three nurses and the lone hospital accountant on June 2, 2001.

In October that year, accountant Guillo escaped from his captors while nurse Tabunag was released supposedly after paying ransom.

Malonzo was also released a month later.

A year after her abduction, Yap died in the hands of the Abu Sayyaf during a rescue operation by the military.

Government forces later captured the 17 Abu Sayyaf men and held them for trial.

“The Court resolves to deny the motion with finality, the basic issues therein having been duly considered and passed upon by the Court in the aforesaid decision and no substantial argument having been adduced to warrant the reconsideration sought,” said the high court.

In 2004, the Isabela, Basilan Regional Trial Court convicted the accused of kidnapping and serious illegal detention.

They were also sentenced to death.

The convicted kidnappers then appealed the lower court’s ruling to the Court of Appeals, which in 2008 affirmed the guilty verdict but modified the death penalty to life imprisonment because the death penalty was repealed in 2006.

They brought the matter to the Supreme Court, which sustained the decisions of the Basilan Regional Trial Court and the Court of Appeals. (GMA News)

Only 195k out of 3-M professionals in Phl pay taxes

Only 195,000 out of 3 million registered professionals are paying taxes, Bureau of Internal Revenue (BIR) Commissioner Kim Jacinto-Henares said.

At a press conference, Henares said records from the Professional Regulations Commission (PRC) showed that there are about 3-million registered professionals.

“Of course the 3-million will go down because we have to remove the seamen and nurses but even if we reduce it to 1.5 million, still it is very far from 195,000,” Henares said.

She added that even if assuming that 750,000 of the 1.5 million are abroad “there are still a lot of professionals who are engaged in businesses, practicing their profession but are not paying taxes.”

Henares added that the 195,000 registered at the BIR are those who filed their income tax returns. However, she said “whether they filed the correct return or not compliant is another issue.”

Today, the BIR filed tax evasion complaint against two medical practitioners and a lawyer.

Based on separate complaints, facing one count of unlawful pursuit of business and 918 counts of failure to issue receipts in violation of the National Internal Revenue Code (NIRC) are spouses Marcelle Marie Palanca Tan-Chen, a licensed medical practitioner and Tenglee Tengsico Taan.

Investigation showed that Life Force 1 medical clinic of the couple showed that

Tenglee is not a registered taxpayer and has no business registered under his name. Also, a comparison of the confiscated receipts issued to patients revealed that only two receipts were issued contrary to what is shown in their appointment books of 920 patients.

Henares said under the law, an establishment should issue a receipt per transaction.

“As a result of their unsound practice of not issuing Ors, the spouses Tan-Chen accumulated revenues worth P3.12 million in July and August 2011,” Henares said.

On the other hand, lawyer Danilo Cariaga has been slapped with a separate complaint for violation of the NIRC specifically for willful attempt to evade or defeat taxes, willful failure to supply correct and accurate information in his income tax return and failure to file value added tax returns for taxable year 2007.

Investigation showed that Cariaga’s total declaration was only P220,456.22 when his actual income was P2.43 million.  The BIR complaint said his total tax liability is P1.95 million. (pna)