Osmeña supports BIR stand to lift PHL bank secrecy law

The chairman of the Senate bank committee on Tuesday said he supports the proposal from the Bureau of Internal Revenue (BIR) to lift the Philippine bank secrecy law.

In an interview, Senator Sergio Osmeña III said more transparency in bank accounts can help increase tax collection.

"I have always been in favor of lifting it but I can never get it passed here," Osmeña said Tuesday.

Adopting the BIR proposal will make it easier for the government to run after tax evaders, he added.

"In our country, when you say I’m violating the law, you have to prove it. When you say I’m evading taxes, you have to prove it. In America, it’s the other way around. When they say you’re evading taxes, I have to prove that I earn it and how did I earn it, so mas madali doon," the senator said.

On Monday, BIR Commissioner Kim Henares urged the Philippines "to lift bank secrecy for tax purposes to help determine whether a person is paying the right taxes."

The BIR failed to meet its tax collection last year, despite increased efforts to file charges against tax evaders. 

Republic Act 1405 considers the unauthorized disclosure of information on an individual's bank deposits as a criminal offense. 

Osmeña, however, said he wants the House of Representatives to act on the BIR proposal first before processing it at the Senate.

"I want them to pass it in the House first, because... kung dadalhin nila sa Senado ipapasa namin dito tapos wala namang mangyayari sa House... waste of time 'yun," he said. – VS, GMA News