Lacson grills PhilHealth over not withholding taxes on IRM releases

Senator Panfilo Lacson on Tuesday interrogated PhilHealth why it did not impose withholding taxes on the releases it made under the Interim Reimbursement Mechanism (IRM).

"Medyo magulo. Kasi kung nakapag-release na kayo P14.9 billion in IRM, wala kayo na-withhold na tax—and you are a withholding tax agent—pag hinabol kayo ng BIR (Bureau of Internal Revenue) sino magbabayad? PhilHealth? So how would you handle that?" Lacson asked PhilHealth officials during a Senate hearing.

PhilHealth Senior Vice President Renato Limsiaco Jr. from the Fund Management Sector said the state insurer only imposes withholding taxes on private health care institutions.

"Ibig sabihin po sa total ng P14.97 billion po, halos kalahati lang po doon ang subject to withholding tax," Limsiaco said.

Lacson asked if PhilHealth was able to withhold taxes among the private health facilities that received IRM.

"I'm sorry to say na ito pong IRM natin ay advances... It was discussed sa execom that PhilHealth will remit the withholding tax intended para sa BIR natin na kumbaga it is amounting to I think P156 million na binayaran po ng PhilHealth sa ating BIR because August 3 po ang deadline," Limsiaco answered.

"Dapat winithhold ninyo 'yun from the private health hospitals, hindi niyo winithheld so nag-abono ang PhilHealth?" Lacson pressed.

"Yes po, your honor. During the liquidation ay doon po natin kukunin ang ipinambayad natin sa BIR," Limsiaco replied. "Hindi ho namin alam na magwi-withhold kami sa umpisa, your honor that's the reason why na hindi tayo naka-withhold."

Former PhilHealth anti-fraud officer Thorrsson Montes Keith said Limsiaco was lying.

"During the previous calamities or fortuitous event, they all withhold taxes. He's saying that he does not know but he knows because he's a CPA and they have already past experiences, they always withhold," the whistleblower said.

Keith further underscored that the P156 million mentioned by Limsiaco was inaccurate.

"The minimum that PhilHealth could withhold should be P300 million and the maximum will be P1.7 billion if they're really going to withhold taxes," he said.

Lacson advised Limsiaco to fire his tax consultant for not being able to advise right away about the proper course of action.

"The way I listen to your explanations, talagang mahihilo nga si General [Ricardo] Morales sa inyo," Senate President Vicente Sotto III said.

Morales, in turn, said Board member and whistleblower Alejandro Cabading knew about the process of withholding taxes but did not advise the executives "because he wants the management to fail."

In response, Cabading said it was not his duty because it was a matter of operations.

"The one who handles the disbursement, they know that in and out they are withholding taxes eh. Why would we discuss that on the level of the Board?" he asked. — DVM, GMA News