Kris Aquino tops BIR list of individual tax payers

(Updated 4:16 p.m.) In President Aquino's drive to increase tax collections, his kid sister is leading the way, according to newly released BIR data. Kris Aquino paid the government P49.87 million in income tax for her 2011 earnings, making her the top individual taxpayer in the Philippines, more than P11 million more than the second highest tax payer, relatively obscure business executive Gregory Deane Reicho. The Sunpower Philippines vice president paid P38.2 million while finance executive Lauro Baja III was third at P34.26 million. The original BIR list had the name of his father, Lauro Baja Jr., former Philippine ambassador to the United Nations, who denied the sizeable income tax after many questioned how a civil servant could be so generous to the government. The top 3 individual tax payers based on their 2011 income surpassed many of those popular names in the the corporate world, according to data released by the Bureau of Internal Revenue (BIR) on Monday, the deadline for income tax payments. However, Baja Jr. is claiming he should not have been on the list. In an interview aired Tuesday on GMA News' “Unang Balita,” he said he retired 2007 and could not have earned that much in 2011. “... All my withholding tax are being withheld by DFA,” he noted, saying he already informed the BIR about this. In a text message to GMA News Online, BIR Commissioner Kim Jacinto-Henares clarified that the Baja on the list is... the son, Lauro C. Baja III. The younger Baja is managing director of UBS Investments Philippines Inc., the local arm of global financial services firm UBS AG. "The Lauro Baja referred to in the list is that of his son with the same name," Henares said. The BIR chief said, "There is nothing to correct," noting that in the government's data base are two Lauro Bajas, one born in 1972 and the other born much earlier. "If the ambassador was not born in 1972, then we are not referring to him," Henares said, adding, "We copied whatever it is that was stated in the registration of the taxpayer, which the taxpayer himself filed. The entry on the BIR list, however, was explicit:

3. Lauro Baja, Jr. (senior diplomat) - P34,257,368.88.  

"If there is a mistake in the registration, we cannot just update it, the taxpayer, which in this case if he is the son, and he is III, then he should be the one to update his registration. Otherwise, we cannot on our own change it," Henares said. Interestingly, some of the reportedly wealthiest people in the Philippines, who regularly appear on annual richest Filipinos lists published by Forbes magazine, are not among the nation's top tax payers. The top 10 tax payers Joining Aquino, Reicho and Baja in the top 10 of the BIR's list of individual tax payers are:

• Businessman Manuel V. Pangilinan who paid the government P25.99 million

• Bank of the Philippine Islands president Aurelio R. Montinola III who paid the government P24.47 million

• Manila Water president and CEO Gerardo C. Ablaza Jr. was in sixth place for paying P22.65 million

• Philippine Ambassador to Portugal and owner of the Lhuillier chain of pawnshops Philippe J. Lhuillier was seventh at P21.65 million

• Victor M. Angeles was eighth at P21.20 million

• Roberto L. Panlilio was ninth at P19.61 million

• GMA Network Inc. chairman Felipe L. Gozon was 10th at  P19.59 million.

Forbes list against BIR list Only one of the richest Filipinos cited by Forbes in 2011 made it to the BIR's Top 10 individual tax payers, and six from the Forbes list were included in BIR’s Top 500 taxpayers in the same taxable year. The BIR list is based on the income tax returns filed and the corresponding income tax paid by individuals, while the Forbes list ranks people based on their registered assets that include shares of stocks and other investments and, when available, proof of income. The comparisons were made based on the individuals' 2011 ranking in Forbes Magazine and the BIR data on how much income tax a person paid for that same taxable year. In the case of GMA Network's head honcho, Gozon was the 32nd richest man in 2011, according to Forbes. Shopping mall tycoon Henry Sy Sr., tagged by Forbes as the richest man in the Philippines, paid  P16.58 million for his 2011 earnings which made him the 15th biggest tax payer for that year. Lucio Tan, labeled by the magazine as the Philippines' second richest man, paid the BIR P10.79 million, which made him the 35th biggest individual tax payer. Tan has business interests in banking, airline, liquor, tobacco and real estate. David M. Consunji, the fifth richest man on the Forbes' list, was the 176th biggest Filipino tax payer, paying P5.91 million. Consunji is the chairman of DMCI Holdings Inc. and Semirara Mining Corp. Eric Recto of Petron Corp., the 24th richest man, was the 61st biggest taxpayer, paying P9.15 million. Recto was recently named Petron vice chairman after resigning as its president. Menardo G. Jimenez Jr., senior vice president of PLDT and a co-owner of GMA Network, was the 27th richest man and the 77th biggest taxpayer (P8.52 million). Manuel B. Zamora Jr., founder and chairman of miner Nickel Asia Corp. was the 28th richest man and the 240th biggest taxpayer (P4.97 million). Jon Ramon Aboitiz, president of Aboitiz Foundation Inc. and Aboitiz & Co., which is privately held by the family the 15th richest man, was the 381st, paying P3.97 million. He is the. Children and relatives The children and relatives of some of the 2011 richest Filipinos were also some of the biggest taxpayers There were the children of retail trade magnate Henry Sy. Hans T. Sy was 24th on the BIR list, paying P13.5 million; Harley T. Sy was 34th, paying P11.13 million; Herbert T. Sy was 54th, paying P9.51 million; Elizabeth T. Sy was 68th, paying P8.84 million; and Teresita T. Sy was 83rd, paying P8.37 million. Another notable businessman on the BIR list is Manuel Paolo Villar who placed 403rd on an income tax of P3.88 million. He is the son of businessman and Senator Manuel Villar. Aboitiz family members were also on the BIR list. Erramon I. Aboitiz, president and CEO of Aboitiz Equity Ventures Inc. (AEV) was in 31st place (P12 million); Enrique M. Aboitiz Jr., father of Erramon and senior vice president of AEV, was 69th on the list (P8.83 million); Stephen George Aboitiz Paradies, chief finance officer of AEV, was 122nd (P7.02 million); Roberto Eduardo Aboitiz, senior vice president of privately-held Abotiz & Co., Inc., was 180th (P5.86 million); and Jaime Jose Aboitiz, executive vice president of Aboitiz Power Corp., was  225th (P5.18 million). Joel Marcelo Gozon Jimenez, son of Menardo Jimenez, was 272nd (P4.76 million). The younger Jimenez, is a director of GMA Network and is also an entrepreneur in his own right. Some members of the MVP Group are also on the BIR list. Orlando B. Vea (16th, P16.25 million) and Ray C. Espinosa (20th, P14.48 million). Vea is president and CEO of Digitel Telecommunications Phils. Inc. and Espinosa is president of TV5 and head of Regulatory Affairs and Policies Group of PLDT. Also on the BIR list are:

• Winston Young Uy, president of tobacco manufacturer Universal Leaf Phils. (22nd, 13.98 million)

• Nickel Asia president Manuel Zamora Jr. (240th, P4.97 million)

• IPVG Corp. CEO Enrique Gonzalez (312th, P4.37 million)

• Punongbayan & Araullo founder Benjamin Punongbayan (319th, P4.33 million)

• ING Bank economist Jose Cuyegkeng (328th, P4.26 million)

• Philippine Airlines president Jaime Bautista (382nd, P3.96 million)

• SGV Group founder Washington Sycip (433rd, P3.74 million)

• Pampanga’s Best owner Angelo Hizon (479th, P3.57 million).

Politicians and other celebrities Former President Joseph Estrada, who is currently running for mayor of Manila, ranked 490th (P3.51 million), while Mandaluyong City Mayor Benjamin Abalos is 300th (P4.5 million). Abalos owns Ben’s Burjer, a burger joint with two branches in Mandaluyong City. A number of Kapuso celebrities are also on the list. Eat Bulaga hosts Vic Sotto and Joey de Leon ranked 19th (P14.73 million) and 28th (P12.48 million), respectively, and Ryan Agoncillo—also a host of Eat Bulaga—placed 194th  (P5.6 million). Actress, model and TV host Solenn Heussaff ranked 99th (P7.79 million). Earlier this month, the BIR slapped Heussaff with a P3.6-million tax evasion case. In explaining why Heussaff was on the 2011 list, BIR commissioner Kim Jacinto-Henares told GMA News Online it merely reflected that the actress filed her tax returns for that year. “It does not mean that when you file your ITR, you pay the right taxes. Her case is still ongoing in the DOJ,” the BIR chief said, noting that there were discrepancies in how much the celebrity really earned and how much in taxes she actually paid. The BIR said she declared P6.73 million in gross income in her 2011 income tax return, and a taxable income of only P3.3 million for the year but a check with her clients and employers revealed that she actually earned at least P13.39 million in 2011. Boxer, incumbent Saranggani representative and GMA talk show host Manny Pacquiao ranked 158th (P6.11 million); singer-songwriter Ogie Alcasid placed 184th  (P5.81 million), and GMA broadcaster Mike Enriquez took the 411st spot (P3.85 million). ABS CBN president and show host Charo Santos-Concio was 33rd  (P11.61 million); Derek Ramsay at 120th (P7.08 million); Piolo Pascual at 123rd (6.98 million); Kim Chiu at 133rd (P6.71 million); Willie Revillame at 181st (P5.85 million); Sharon Cuneta-Pangilinan at 191st (P5.74 million); John Lloyd Cruz at 205th (P5.41 million). List as a tool The list of top taxpayers is being closely monitored and analyzed by BIR and the Department of Finance from the national down to the Revenue District Office (RDO) level. “We closely review the top taxpayers’ lists when we analyze our tax collection data. Based on our research and benchmarks, we have expectations for the profile of taxpayers that appear on these lists and we investigate findings that diverge from our conclusions,” Finance Secretary Cesar Purisima said in a statement. He noted that the lists are valuable tools in the drive to increase tax compliance. Movements within and from the list could be part of the reasons why the government would audit tax-eligible entities. "These lists serve as another way to double- and triple-check income tax payments in populations that are historically difficult to track, such as the self-employed, businesses, and professionals,” Purisima noted. “Our most successful business personalities and corporate citizens should also be top taxpayers—and if that is not the case, we need to find out why,” the Finance chief added. Not on the 2011 list There were notable names, including those who were on the previous list, that did not make it to the BIR’s 2011 Top 500 taxpayers. Jaime Augusto Zobel de Ayala, who ranked 23rd in 2010, and Fernando M. Zobel de Ayala (37th) were missing from the 2011 list. Oscar M. Lopez, chairman emeritus of Lopez Holdings Inc., was 11th in 2010 but was no longer on the 2011 list. The Top 3 individual taxpayers of 2010—Vicente T. Lao, Rolando B. Hortaleza and Carlo J. Caparas—were also absent from the 2011 list. Henares said the list only shows individuals who regularly file their ITR and does not translate to tax evasion for those who are not on the the list. “The list released by BIR only showed the Top 500 individual taxpayers for taxable year 2011, based on income tax returns filed. Hindi dahil hindi sila nag-file ay hindi na sila nagbayad ng tax. May reason. For those working in companies, there are those who undergo substituted filing,” she added. — VS/HS, GMA News