Palace cites tax reform, high-profile tax cases in 2017 accomplishment report

High-profile tax settlement cases and the passage into law of the Tax Reform for Acceleration and Inclusion (TRAIN) bill were among the key accomplishments of the Duterte administration this year.

In the “Duterte Administration Year-End Report, 2017 Key Accomplishments,” the Executive branch cited tax and other cases pursued by the government this year, which resulted in the following:

• Philippine Airlines (PAL) settling P6 billion of unpaid dues

• Mighty Corp. settling its P40-billion tax liabilities

• Sunvar Realty Development Corp. leaving the “Mile Long” commercial property

In October, flag carrier PAL settled its financial obligations in full through the Department of Transportation (DOTr) its unpaid navigational and other charges to the Manila International Airport Authority (MIAA) and Civil Aviation Authority of the Philippines (CAAP).

The settlement came after President Rodrigo Duterte threatened business tycoon Lucio Tan, chairman and CEO of PAL, that the government would be compelled to close the NAIA Terminal which the flag carrier has been using exclusively unless the airport charges are paid in 10 days.

Also in October, cigarette maker Mighty paid nearly P40 billion as part of a compromise deal with the government regarding unpaid excise taxes after the Bureau of Internal Revenue discovered that the company used fake tax stamps on its cigarette packs.

The compromise deal compelled owner Alexander Wongchuking to sell his cigarrette business to Japan Tobacco Inc.

Prieto-Rufino-led property firm Sunvar Realty Development Corp. vacated in August the controversial Mile Long property after receiving an order from a Makati court.

Duterte ranted repeatedly against the Philippine Daily Inquirer (PDI), a national newspaper critical of the administration, and that the Mile Long property must be returned to the government.

The Prieto family also owned PDI. The Prietos eventually divested in the Inquirer Group of Companies in favor of business mogul Ramon Ang .

The tax reform law also adjusts excise taxes on petroleum products, automobiles, and impose tax on sugar sweetened beverages as compensating measures to make for the potential revenue losses from lower personal income tax rates.

Earlier this month, the President signed Republic Act 10963 or the TRAIN law, which embodies the first package of the administration comprehensive tax reform program.

The most significant breakthrough in the tax reform is that those who are earning P250,000 a year are exempted from paying the income tax.

Here is the report:

— John Ted Cordero/VDS, GMA News