PNoy warns Chinoy businessmen who avoid paying taxes

President Benigno Aquino III on Friday called on Chinoy  businessmen to pay and file their taxes correctly, vowing such transgressions would not "disappear into a black hole," unlike in past administrations. Chinoy is a combination of the words Chinese and Pinoy. "I hope that you will allow me to bring up a sensitive topic... In fact, this came from a report from Commissioner Kim Henares that was a bit unnerving,” the President noted, referring to the Bureau of Internal Revenue chief. “Based on your own 2011-2013 directory, your federation includes 207 firms and organizations as members. Only 105 of these have a Tax Identification Number. Of these 105 firms, only 54 filed tax returns," Aquino said during the 29th biennial convention of the Federation of Filipino Chinese Chambers of Commerce & Industry (FFCCCII) in Pasay City. "To make matters worse, 38 firms and organizations actually filed returns with zero tax due. This means that only 16 out of the 207—or only around eight percent—of your member-organizations paid taxes," Aquino added, noting that some companies even paid “less than a thousand pesos in total taxes. "I was shocked" “Of those who filed and paid income taxes, a lot of you paid less than P100,000. There were some who paid less than P1,000 in taxes,” Aquino said. BIR data showed that only 424 of 552 individual members of the FFCCCII have Tax Identification Numbers or TINs. Of the 424, only 185 or 44 percent filed tax returns for the past year, the President noted. “Of those that filed tax returns, 14 filed returns with zero tax due. What this means is 354 out of 552 members—or 64 percent of you—did not pay taxes for the same reasons: no TIN, no tax due, or nothing filed at all,” Aquino added, saying he was surprised that businesses with glowing portfolios have not paid what they should have. “I was shocked when I learned this, because that would mean that you are making even less than what I receive every month,” Aquino said, noting companies’ that do not comply with tax laws could be worrisome to their investors. “Stockholders of your companies must be surprised by this as well. In fact, they would probably be even more disturbed than I am right now. After all, is it not true that earnings should imply a corresponding tax? After hearing of this strange news, would they not be worried about their investment?” Aquino said. Businessmen have enough time to pay their taxes, but that they will answer to the law when the deadline for filing has lapsed, the President warned. “Today, I am appealing to you to correct the situation and fulfill your civic duty. There is still time. After April 15, you will have to deal with Commissioner Kim Henares herself—with Justice Secretary Leila de Lima at her back. Beyond corporate responsibility The President also assured the businessmen that their taxes will work for them and for the Filipino people, instead of being pocketed by some corrupt officials. “Gone are the days when your taxes disappeared into the pockets of an unscrupulous few, or when bending the rules may have been the only way for otherwise honest companies to keep operating. Things have changed,” Aquino said, touting his administration’s thrust on transparency and accountability. Aquino called on the Chinoy businessmen to go beyond corporate responsibility and fulfill their roles as law abiding citizens by filing and paying their taxes correctly and on time, saying that, more than anything, this will benefit Filipinos in need. “Aside from being your civic duty, paying taxes fits into our strategy of empowering the Filipino people. The money you pay to government now also goes to classrooms, teachers, textbooks, healthcare, food, disaster relief, and other initiatives that ensure that our people are given the opportunity to live dignified lives,” Aquino said. “The taxes you pay are not lost in some black hole. They redound to real, concrete benefits for businessmen like yourselves, and for the rest of our people,” he added, boasting that his administration’s “tuwid na daan” platform has yielded concrete results. “[We have been] leveling the playing field, weeding out corruption, and ensuring a just, honest, and stable environment. But complete solidarity requires reciprocity—and today, I am only asking you to make good on your federation's commitment to tread the straight path with us and live it out in your individual lives,” the President said. — VS, GMA News