Aquino warns Filipino-Chinese businessmen who evade paying right taxes-A A +A
Friday, March 22, 2013
MANILA -- President Benigno Aquino III warned Friday the Filipino-Chinese businessmen who would continue to evade paying the right taxes that the government will go after them.
The Chief Executive issued the warning in front of the members of the Filipino-Chinese Chamber of Commerce and Industry, Inc. (FFCCCII) during its 29th Biennial Convention at the Mall of Asia Complex in Pasay City.
"Let me share with you some friendly—and practical—advice—and I have just learned this, so again, forgive me if I make any mistakes: hui sin pa la tyo seh. (Please pay correct taxes)," Aquino said.
"Today, I am appealing to you to correct the situation and fulfill your civic duty. There is still time. After April 15, you will have to deal with (Bureau of Internal Revenue) Commissioner Kim Henares herself—with Justice Secretary Leila de Lima at her back," he warned.
The President admitted that he was shocked to learn from the BIR that only few FFCCCII members pay taxes.
From 207 firms included in the group's directory in 2011-2013, only 105 of them have a Tax Identification Number (TIN), the President said, adding that of those who have TINs, only 54 filed tax returns.
"To make matters worse, 38 firms and organizations actually filed returns with zero tax due. This means that only 16 out of the 207—or only around eight percent—of your member-organizations paid taxes," he explained.
Of the 552 FFCCCII individual members, 424 have TINs, he added.
"It is interesting to note that only 185 of these members with TINs—or almost 44 percent—filed income tax returns. Of those that filed tax returns, 14 filed returns with zero tax due. What this means is 354 out of 552 members—or 64 percent of you—did not pay taxes for the same reasons: no TIN, no tax due, or nothing filed at all," Aquino further said.
"In fact, of those who filed and paid income taxes, a lot of you paid less than 100 thousand pesos. There were some who paid less than one thousand pesos in taxes. I was shocked, to say the least, when I learned this, because that would mean that you are making even less than what I receive every month," he added.
The President said that the news he received from the BIR was "truly unexpected."
He called the FFCCCII members to pay their correct taxes as he assured them that the money to be generated from them will be spent on correct projects and programs of the government.
"Gone are the days when your taxes disappeared into the pockets of an unscrupulous few, or when bending the rules may have been the only way for otherwise honest companies to keep operating. Things have changed," he explained. (SDR/Sunnex)