BIR blocks opening of Sara Duterte, husband’s tax returns

The Bureau of Internal Revenue (BIR) on Wednesday blocked the House Committee on Justice from opening a box containing the income tax returns (ITRs) of Vice President Sara Duterte and her husband, Manases Carpio.

BIR Commissioner Charlito Mendoza said the ITRs, which were covered by a subpoena issued by the House panel, may only be disclosed when the request is in aid of legislation and must be examined in an executive session, not in a public hearing attended by media.

He cited Section 20 of the National Internal Revenue Code, which states that the Commissioner shall, upon request of Congress and in aid of legislation, furnish its appropriate committee with pertinent information, including taxpayer returns.

However, any return or return information that can identify a taxpayer shall be disclosed only when the committee is sitting in executive session, unless the taxpayer consents in writing.

“When we submit the documents, it must be in aid of legislation. Our premise in submitting the documents is that this proceeding is also in aid of legislation.

"Now, applying what the law expressly provides, the tax returns can only be examined if two requirements are met: in aid of legislation and in an executive session,” Mendoza said.

Mendoza explained that the BIR turned over the documents based on the view that the House proceeding also qualifies as an inquiry in aid of legislation.

“When we submitted the documents, our premise is that this proceeding is also in aid of legislation because whatever is discussed here could be the basis of future amendments to laws, such as the Bank Secrecy Law or the Tax Code,” he said.

House Senior Deputy Minority Leader Leila de Lima of the ML party-list questioned Mendoza on whether he was aware that the subpoena was issued in connection with impeachment proceedings against the Vice President.

Mendoza replied: “Alam po namin na ito ay impeachment proceedings (We know this is an impeachment proceeding)."

“We produced the documents because we were served the subpoena, and we believe submission is one of the exceptions provided by law,” he added.

De Lima rejected this position, arguing that the Tax Code does not override Congress’ constitutional power in impeachment proceedings.

“I take the stronger legal position that Congress, in its impeachment capacity, can compel the production of ITRs of an impeachable official. The doctrine of constitutional supremacy over ordinary statutes supports this view,” said De Lima, a former Justice secretary.

“The confidentiality provisions of the NIRC do not immunize a public official from disclosure in a constitutionally mandated accountability proceeding. The Constitution prevails over an ordinary statute,” she added.

Asked again by reporters why the BIR interpreted the impeachment proceedings as an inquiry in aid of legislation, Mendoza said it was based on Congress’ legislative powers.

“Our interpretation is that the discussions may be used for future legislation when we submitted the documents to the committee. Anything that can be discussed there falls under that context,” he said.

Mendoza, however, said he could not yet determine whether the Senate—should the impeachment case reach it for trial—may open the Vice President’s tax returns.

“Pag-aaralan namin (We will study it). This is a gray area,” he said.

The House Committee on Justice later suspended the hearing, with the sealed box of income tax returns remaining in its custody.

The panel had earlier issued a subpoena for the ITRs of the Vice President and her husband in connection with impeachment allegations that she had accumulated unexplained wealth.—MCG, GMA News