BIR chief: Philrem not registered as remittance company

Bureau of Internal Revenue (BIR) Commissioner Kim Henares told senators investigating the $81-million money laundering scheme on Tuesday that Philrem Service Corp. is not a registered remittance company.

Discussing BIR's observations on Philrem's receipts, Henares said there was something wrong with the registration of Philrem, which served as one of the channels through which $81 million was laundered in the Philippines after being stolen from Bangladesh's bank account in New York.

“We looked at the registration of Philrem with us. I think there’s something wrong with their registration. Kasi their registration with us is for other land transportation contractor hindi ho as money changer and remittance company,” Henares told the Senate blue ribbon committee.

“They amended their articles of incorporation in 2005 but they did not update their registration with us,” she added.

Asked by Senator Vicente Sotto III if Philrem is authorized to represent itself as a remittance company, Henares did not give a categorical answer.

She pointed out, however, that a non-bank financial intermediary such as Philrem is mandated to pay a 5-percent gross receipt tax, which the company allegedly did not pay.

“The taxes they paid are wrong because when you are a money changer and a foreign exchange company, you are a non-bank financial intermediary, so you’re supposed to pay a 5-percent gross receipt tax. You’re not supposed to be paying VAT (value-added tax),” Henares said.

Henares also noted that Philrem's receipts do not conform to BIR standards established in 2013.

She said the receipts were not serialized and lacked details such as Authority to Print receipts, tax identification number and business address.

"Ito ho is not a legitimate and right receipt," the BIR chief said.

Philrem president Salud Bautista said they are paying VAT.

"For January 2016, we paid P45,301. For February P36,580, we are still doing the one for March," she said.

Henares declined to divulge the taxes Philrem paid last year but hinted that it was lesser than six figures. —ALG, GMA News