Purisima, Henares take back controversial tax memo

BIR Commissioner Kim Henares. INQUIRER FILE PHOTO

Finance Secretary Cesar Purisima and Revenue Commissioner Kim Henares blinked first.

On Tuesday they bowed to pressure being brought to bear by lawmakers seeking to block a revenue memorandum circular that would have it made it mandatory for taxpayers to disclose any extra income.

Batangas Representative Hermilando Mandanas said Purisima and Henares “reluctantly” agreed to recall Memorandum Circular No. 57-2011 due to mounting concerns the additional information that would be required of taxpayers would violate their right to privacy.

Henares issued the circular on Nov. 25 to compel individual taxpayers to submit supplemental information detailing their financial transactions—from bank deposits to stock trading to property sales—beginning next year.

Mandanas said Purisima agreed to issue a new revenue regulation, in coordination with members of Congress, by the end of the week which would make the filing of additional information optional.

Last year, the BIR issued a similar order (MC 40-2011) which also generated a howl of protest.

Purisima and Henares had initially resisted calls to junk MC 57-2011 at the start of Tuesday’s ways and means committee hearing at the House of Representatives.

But the two wilted in the end from the vigorous criticism voiced by committee  members Magtanggol Gunigundo of Valenzuela City, Giorgidi Aggabao of Isabela, Toby Tiangco of Navotas City, Tomas Apacible of Batangas and Luis Villafuerte of Camarines Sur, who said the BIR order was unconstitutional and violated the Bank Secrecy Law.