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Marcos claim on assessment of unpaid estate tax inaccurate, PCGG tells Isko camp

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Marcos claim on assessment of unpaid estate tax inaccurate, PCGG tells Isko camp
This screengrab taken March 3, 2022 shows Isko Moreno's political strategist, Lito Banayo (left) and Aksyon Demokratiko chair Ernest Ramel (right) speaking to reporters at a press conference.
Philstar.com Screengrab / Isko Moreno Domagoso on Facebook

MANILA, Philippines — The Presidential Commission on Good Government said the assessment of estate tax owed by the Marcos family — said to be at  P23,293,607,638 — had been completed in the 1990s, making a claim by the Marcos camp that collection was put on hold because it was unclear how much they should pay inaccurate.

The agency issued the statement in response to a letter from Aksyon Demokratiko — the political party of Manila Mayor Isko Moreno, a candidate for president  — in response to the claim that the PCGG and Bureau of Internal Revenue had agreed to put the matter on hold.

In a letter responding to Aksyon Demokratiko and released to media, PCGG Chairman John Agbayani said the BIR had "already issued its final assessment."

What did Marcos say?: To recall, Aksyon Demokratiko Chairman Ernesto Ramel Jr. wrote Agbayani seeking clarification on the statement of Marcos' campaign on March 9. Ramel, in a statement sent to media, said the PCGG replied to his letter on Friday, March 11.

The two-page response was jointly signed by Chairman Agbayani and Commissioners Raymond Anthony Dilag and Rhoderick Parayno. 

"Even BIR and the PCGG have arrived at an agreement for the BIR to wait for the decision on the said case before any collection enforcement activities and to establish ownership of the subject properties with certainty to determine with accuracy the fair and just tax base to be used in computing estate taxes, if any," lawyer Vic Rodriguez, Marcos' spokesman, earlier claimed in response to Ramel.

What did the PCGG say?: The PCGG, the agency created to recover ill-gotten wealth from the Marcoses and their cronies, said this was not true.

"While it is true for reasons above-stated, there was a 2003 verbal understanding between the BIR and the PCGG, it may not be accurate to state that the agreement was 'to determine with accuracy the fair and just tax base to be to be used in computing estate taxes, if any' because, as early as 1993, BIR already executed its final assessment when it levied and sold 11 real properties in Tacloban City, and, as early as 1997, the judgment on the tax case had become final and executory," the PCGG letter said. 

Citing findings by a Special Audit Tax Team from the BIR, the PCGG said in its letter that the tax bureau determined the following liabilities in 1991:

  • Deficiency Estate Tax Assessment against the Estate of Ferdinand Marcos in the amount of P23,293,607,638.
  • Deficiency Income Tax Assessments against Ferdinand Marcos and Imelda Marcos in the aggregate amount of P184,159,289.70 for the years 1985 to 1986
  • Deficiency Income Tax Assessment against Ferdinand Marcos Jr [for the years] 1982 to 1985 in the aggregate amount of P20,410.

BIR has yet to respond to earlier letter 

Ramel called the PCGG's statement "proof that the camp of Marcos Jr. has again lied as they always do in so many issues about their family, including their ill-gotten wealth."

The Aksyon Demokratiko chair earlier said the Marcos family’s avoidance of paying the estate tax is a clear demonstration of "abuse of power, disregard for the laws enforced by the government and lack of respect to citizens who religiously pay their taxes imposed on them."

The BIR has yet to reply to Ramel’s March 7 letter.

Ramel earlier wrote BIR Commissioner Caesar Dulay asking him if his office has sent a new written demand to the Marcos family to pay their estate tax. He pointed out that ousted dictator Ferdinand Marcos passed away almost 32 years ago on September 29, 1989.

“His heirs — widow Imelda, only son Ferdinand Jr. and daughters Imee and Irene did not file the estate tax return with the Bureau of Internal Revenue as required by law. Neither did they pay any estate tax," he wrote. 

READ: Here's what you need to know about presidential candidate Isko Moreno

Ramel claimed that the Marcos heirs ignored all the notices sent by the BIR.

Marcos Jr. filed a petition before the Court of Appeals, which dismissed said petition on June 5, 1999, on the ground that the estate tax assessment of BIR had already become final and unappealable — a decision that no less than the Supreme Court would later affirm. 

"The BIR, which you now head, must renew written demands on the Marcos heirs to pay these tax liabilities once every five years, otherwise they prescribe and become uncollectable. Past administrations under Presidents Ramos, Arroyo and Aquino have faithfully issued such written demands," Ramel wrote the BIR. — Franco Luna 

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