BIR chief, assistant commish point at each other on Del Monte tax liabilities

Bureau of Internal Revenue Commissioner Caesar Dulay and Assistant Commissioner for Large Taxpayers Service (LTS) Teresita Angeles pointed fingers at each other during a hearing at the House of Representatives  to find out who supposedly reduced the three-year tax liabilities of Del Monte Philippines, Inc. from P8.7B to P65M

House Speaker Pantaleon Alvarez quizzed Dulay on why the taxman allowed Del Monte to have a reduced tax assessment for the taxable years  2011 to 2013.

"From an assessment of P8.7 billion ay pumayag na lang siya ng P65 million," Alvarez noted during the House committee on ways and means hearing Wednesday on a compromise deal between the BIR and Del Monte Philippines.

Dulay claimed he did not approve lowering Del Monte's tax liability to P65 million and that it was the assistant commissioner for LTS who did so.

But Angeles denied that she did, saying the approval of a reduction in tax assessment is a function of the BIR commissioner.

"It was under the authority of the commissioner. It was a delegated function," Angeles said.

Again, Speaker Alvarez turned to Dulay. "Ikaw ang commissioner. Ang assessment ng gobyerno ay P8.7 billion mahigit at pumayag kayo na bayaran lang ng P65 million. Hindi ka ba interesado doon bilang commissioner?"

The BIR commissioner insisted that reducing the tax liability assessment of Del Monte did not go through his office. "Hindi dumaan sa 'kin, Your Honor," Dulay said.

The House Speaker lashed back at Dulay. "Is that how you administer 'yung bureau mo?" Alvarez said.

"Ang tanong ko lang sayo bakit hindi ka na-alarma na mayroong P8.7 billion at binayaran lamang ng 65 million at hindi mo alam at hindi umabot sa opisina mo, bakit?" the House speaker asked.

"Because, Your Honor, the present procedure in the Bureau of Internal Revenue, in this particular case of Del Monte, which is a protested assessment case, does not have to pass through the Office of the Commissioner," Dulay said.

"With all due respect, Your Honor, in the collection and assessment process in the BIR, we follow the Tax Code and the procedures set out by revenue regulations," he added.

During the same hearing, BIR Assistant Commissioner Marissa Cabreros noted that the correct tax assessments on Del Monte was P8.7 billion from 2011 to 2013, not P30 billion as reported earlier.

Del Monte said the P30 billion assessment was "outrageous" in light of its actual revenues during those three years.

The P65 million paid by Del Monte was not an amount based on a compromise agreement, but was a result of a protest raised by Del Monte, Dulay noted. "It's a protested assessment not a compromise," he said. — VDS/KVD, GMA News