Solon raps Bañez for ‘economic sabotage’

Resigned Bureau of Internal Revenue (BIR) Commissioner Rene Bañez has been accused of "economic sabotage" at the tax agency for failing to appeal a tax case that resulted in over P1 billion in losses.

The accusation against Bañez was made in a privilege speech by Leyte Congressman Aniceto Saludo the other night in which he detailed what he termed as the "grand scam of the millennium."

According to Saludo, Bañez’s non-appeal of a tax case involving his former employer Fort Bonifacio Development Corp., (FBDC) resulted in P1.1 billion in losses. This will trigger additional losses of P10 billion due to other tax cases involving the same issue, he added.

Bañez, however, refuted Saludo’s charges, saying that "all of these accusations are pure lies. I don’t know what his (Saludo’s ) motives are, but his facts were erroneous."

Banez added that he is exploring the legal options he has against Saludo, who he also accused of derailing the government’s efforts to clean up the BIR.

"Congressman Saludo is hiding under the mantle of privilege speech and I’m sure if he checked his records he would have found out that all his allegations were old and were already resolved by the appropriate authorities," Bañez said.

‘Economic sabotage’

Saludo said the BIR let the government shoulder the payment of documentary stamp taxes (DST) that accrue on the winning bid of FBDC of P71.2 billion for the Fort Bonifacio property.

The Leyte solon also said that FBDC, due to acts of omission by Bañez, will be able to get tax refunds and tax credits of P6 billion. He said the entry of judgment issued Jan. 30, 2002 involving FBDC’s tax became final and executory and will set a precedent for other cases.

"It is clear from all this that Banez is liable for economic sabotage, gross negligence and gross violation of the Anti-Graft and Corrupt Practices Act," Saludo said.

He also accused Bañez of causing the reduction of the violation of Fort Bonifacio land from P100,000 per square meter to P35,000 per square meter thereby giving "unwarranted benefits to a private corporation.

"What is unfortunate in this whole sordid episode is that Bañez was conniving with his former employer in evading payment of the correct taxes due the government even as he was harping on reforming the country’s tax collection system," Saludo said.

Citing Bañez for being "bantay-salakay," Saludo said the ex- BIR chief should not blame others for "his own colossal failure" since he himself is to blame for the loss in revenues of the government resulting in a huge collection shortfall.

"Contrary to his own sworn duty to protect the public interest as head of a sensitive government agency. Bañez was, in fact, using the BIR to protect private interests," Saludo said.