Hold order sought for tax evaders

MANILA, Philippines – President Duterte yesterday proposed placing suspected tax cheats under a hold departure order and charging them for “cheating the government.”

“I will order the BIR (Bureau of Internal Revenue) to file cases. Once a case has been filed in court, your freedom to travel is curtailed,” Duterte said. “It is always a crime if you don’t pay your tax properly and correctly.”

Duterte expressed disappointment at how many millionaire-businessmen have not paid the right taxes to the government. 

“You are enjoying the planet (called the) Republic of Philippines. You enjoy its roads, you have the protection of the police. You are rich and you have police officers as security guards or the military. And we kept a blind eye on that,” Duterte said.

“If internal revenue commissioner (Caesar) Dulay can give me a list of violators, then you travel a lot. I will ask the immigration (to put you in a watchlist) so that you cannot travel anymore,” he added.??

At the same time, Duterte gave assurance that businessmen who pay the proper taxes will be left alone. “We will have no problems. And I will never allow anybody to disturb you,” he said.

Leaders of local and foreign business groups said they have no problem with such undertaking as long as those corporations or business personalities to be named are really violators.

“We think this is good as it will instill fear in the hearts of those tax evaders. We see no problem (in naming them) provided that there is basis and it is really clear that they are indeed tax evaders,” Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr. said.

“It’s a good idea to go after tax evaders. Best way to start is with those who have existing cases. This way there is a basis,” National Competitiveness Council co-chairman for the private sector Bill Luz added.

Philippine Chamber of Commerce and Industry president George Barcelon said Duterte’s pronouncement to shame tax evaders is a welcome sight for the business community as he is “simply stressing for everyone to pay their taxes and reminding the BIR to collect them.”

Barcelon said it would be best for the government to follow due process in prosecuting the proven violators.

The foreign business community also expressed their support.

“While the shame campaign is certainly a deterrent for small and big evaders, I believe legal consequences are a much more effective deterrent, especially for businesses,” European Chamber of Commerce of the Philippines (ECCP) president Guenter Taus said.

“We support all legal efforts to make taxpayers pay what they should pay. We would like to see more tax evaders lose their stolen tax assets and go to jail under the two to four year provision of RA 7642. The US Tax Code provides for much heavier penalties and up to five years in jail for tax evasion,” American Chamber of Commerce of the Philippines senior advisor John Forbes added.

For ECCP’s Taus, he said another option is for the government to instead highlight those companies which are paying their taxes on time by publicly showcasing them as a best practice and give them tax incentives to continue doing so.

Purge is coming

Duterte vowed to clean the government of its bad eggs, particularly those involved in illegal drugs.

“There will be a purging, actually. Without declaring martial law, I will cleanse this government,” Duterte told reporters Monday night at a local hotel here.

After naming 159 individuals that included judges, mayors, policeman and soldiers, the President said he is set to come up with another list of people allegedly involved in the illegal drugs trade, this time prosecutors and barangay captains from all over the country.

Duterte said he would soon bare the names included in the new list, particularly the prosecutors and village chiefs who are into illegal drugs.

There will also be a possibility that a new set of local executives would be named in the next list.

Duterte seemed to be addressing those complaining that other local officials were not included in the drug list announced last Sunday.

“Do not worry, we will catch up,” Duterte said. “There will be more, barangay captains, more policemen, including prosecutors coming.”

Duterte explained the list is still being prepared and validated.

Duterte said the prosecutors in the list had handled drug-related cases.

He also pointed out the judges who were included in the earlier list were known to have also dealt with drug cases before. 

“Nine of 10 (cases) dismissed, read my resolution. I would know (why you did not file the case). When the case comes to court, the judge could be bought, so acquitted,” he said.

Duterte also warned the public against buying claims of politically motivated accusations, noting that some may have vested interests in linking certain personalities to illegal drugs.

When he was mayor, Duterte admitted he knew of the complexities of the drug problem. But he was also shocked to realize the magnitude of the drug menace after he was elected president.

Duterte said this prompted him to direct military intelligence and the Philippine National Police to come up with a validated list of all personalities engaged in the illegal drug trade.

Duterte said he was baffled how the drug syndicates have infiltrated the country – only to learn from his intelligence people that there were many officials from local government, the judiciary and law enforcement agencies who – unwittingly or wittingly – allowed themselves to be part of the protection racket.

Noting the global criticisms, Duterte maintained his determination to destroy drug syndicates in the country.

Duterte defended the inclusion of dead people in target list. He also shrugged off reports that the list was not validated or updated because it included names who have died in recent years. 

Duterte said the intelligence community is not notified about one’s death.

“Death is a private affair to the family. It is not announced to the world except through the obituary… Somebody must inform government, that this person or so has died,” he said.

A former prosecutor, Duterte also justified his shame campaign and anchored his defense on the Freedom of Information (FOI) executive order he signed at the start of his term.

“(This is) in line with the EO I signed… so who should be faulted? You, me and even media, you made me do it,” he told reporters.

Duterte said the media repeatedly asked him to reveal the names of local officials involved in illegal drugs.

“It is raw intelligence but in view of the problem, the seriousness of the problem, I need to tell you. And nobody can stop. Do not tell me what to do to run this count,” he said, telling his critics to shut up.

The President also blamed the slow justice system in prosecuting criminals, which is why he has resorted to his shame campaign. It is a warning for drug personalities to stop their illegal activities, he said.

“It’s not criminal information. It’s just my word against the others because I have a duty to tell the public so that they will know the danger to our nation, and so that we know who made the industry prosper,” he added.

“If I will wait for arrests, once a day, then they will have their lawyers, the wait for trial… conviction, then appeal before… it will take 10 years for one person…with 600,000 around, we have to agree that there is a crisis,” Duterte added. – With Edith Regalado, Richmond Mercurio