Hontiveros says BIR final arbiter in Chinese firm's tax obligations

Senator Risa Hontiveros on Thursday said the Bureau of Internal Revenue will be the "final arbitrer" in the controversy involving China firm  Xuzhou Construction Machinery Group (XCMG), which supposedly had no tax record when it supplied COVID-19 equipment to the Philippines. 

Hontiveros was reacting to the XCMG's statement that denied allegations of tax evasion as all its dealings with the government were above board.

The XCMG had said that as an international exporter from China, it is not required to register in the destination country and was not obligated to pay income tax.

But during the hearing, Mon Abrea, Senate's resource person and certified public accountant, said XCMG, as a foreign company, is subjected to "25% withholding tax."

With this, Hontiveros said Xu Zhou must let the government's tax collection body act on the firm's obligations.

"Mukhang may misrepresentation ang Xu Zhou kung ano ang tax obligations nila sa gobyerno. Sa akin lang Mr. Chairman. Let the BIR be the final arbiter," the senator said during the resumption of the Senate blue ribbon committee probe on the COVID-19 supply procurement of the government.

(There might be a misrepresentation of Xu Zhou on its tax obligations from the government.)

There were no officials of Xu Zhou present on Thursday's hearing to answer Hontiveros' statement.

Aside from tax issues, the firm also admitted in an Oct. 19 Senate hearing that it was not an accredited importer of the Bureau of Customs.

It also disclosed that it is not registered under the Philippines' Security and Exchange Commission.—LDF, GMA News