Henares: Philrem not registered as remittance company

MANILA, Philippines – Bureau of Internal Revenue (BIR) Commissioner Kim Henares on Tuesday disclosed before the Senate Blue Ribbon Committee that the Philippine Remittance Co. (Philrem) wasn't registered as a remittance company.

Henares, who attended for the first time the Senate probe on the $81-million banking heist, was asked to discuss her observations with the receipts of Philrem. She mentioned that the BIR discovered that Philrem is registered as a land transportation contraction and not as a money changer and remittance company.

“We looked at the registration of Philrem with us (BIR) I think there’s something wrong with their registration. Kasi their registration with us is as other land transportation transaction, hindi ho as money changer and remittance company,” Henares said.

“They amended the articles of incorporation in 205 but they did not update their registration with us,” she added.

Asked by Sen. Vicente “Tito” Sotto III if Philrem’s wrong registration means it is unauthorized to do money remittance or delivery transactions, Henares did not answer but mentioned that the company is paying the wrong tax.

Henares explained that a remittance company is a non-bank intermediary, which meant that such companies are expected to pay a 5 percent gross receipt tax and not value added tax. She said she cannot disclose the exact amount Philrem paid last year but hinted that it was lesser than six figures.

Aside from the registration discrepancy, Henares also noted that Philrem violated the National Internal Revenue Code since its receipt is not registered with the BIR as mandated in 2013.

“First ho, violation ho ito ng batas ng National Internal Revenue Code. Noong 2013 dapat nakarehistrado na lahat sa BIR,” the commissioner said.

“We require na lahat ng klaseng resibo, delivery receipt, acknowledgement receipt, registered with BIR. Hindi pwedeng gumamit ng resibo na hindi registered,” she added.

Henares said that Philrem’s “issuance of receipt is a clear violation of the regulation.” She explained that Philrem’s receipt has no authority and was not serialized.

“Ito ho is not a legitimate and right receipt. Kasi may requirement ho kami address, TIN number, ATP, kung sino nag-print, wala ho ito e,” Henares said.

During the hearing, Sen. Ralph Recto also asked Philrem’s president Salud Bautista to present other receipts apart from the transaction involved with the alleged money laundering case. However, Bautista refused, citing the protection of her other clients.