MANILA, Philippines—For the second time in less than a year in office, Bureau of Internal Revenue (BIR) Commissioner Kim Henares has been forced to retreat on a controversial measure designed to boost revenues.
Henares has agreed to pull out an agency order mandating private individuals earning more than half a million pesos a year to submit what was practically a statement of assets, liabilities and net worth (annual information return or AIR) after getting a virtual lecture from more than half a dozen lawmakers at the House ways and means committee hearing Tuesday.
Henares told the lawmakers she would recommend the withdrawal of Revenue Regulation No. 02-2011 issued March 1 compelling individuals earning P38,462 a month to file an AIR with their annual income tax return on a voluntary basis initially this year and to become mandatory starting next year.
Cagayan de Oro Rep. Rufus Rodriguez said that Henares apparently realized her error after lawmakers “argued with passion” against the AIR.
Unconstitutional
“It is illegal because it did not pass Congress. It is unconstitutional because it violates an individual’s right to privacy. It is undemocratic because it was done without any consultation,” Rodriguez said.
Bayan Muna party-list Rep. Teodoro Casiño said: “I am happy that Commissioner Henares has seen the light on this matter. The BIR already has all the information needed to enhance revenues and go against tax evaders. They should just do their job properly rather than burden taxpayers with questionable and practically useless regulations like the AIR. I hope this is the end of it.”
Question Hour
Rodriguez said that should Finance Secretary Cesar Purisima refuse to heed Henares’ recommendation to withdraw the AIR, lawmakers would compel her boss to appear before the House committee in a Question Hour.
This is the second time that Henares had to take a step back on a policy measure after the Supreme Court issued a temporary restraining order against her proposal to impose a 12-percent value added tax on toll rates, a proposal which was also savaged by representatives and senators.