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BSP disputes BIR figures on pawnshops

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The Bangko Sentral ng Pilipinas (BSP) has disputed the Department of Finance’s (DOF) records on the numbers of pawnshops, which have become the latest target of authorities in their crackdown on tax delinquents.

BSP Deputy Governor Nestor A. Espenilla Jr. said the central bank’s and the Bureau of Internal Revenue’s (BIR) records might have to be reconciled to avoid the unfair portrayal of the pawning industry as a haven for tax evaders.

“We keep track of active pawnshops in the system. A lot of those (that didn’t pay taxes) are probably closed already,” Espenilla told reporters.

Government records showed that of the 6,301 pawnshops in the country, 5,230 were registered with the BIR and were paying taxes, Finance Secretary Cesar Purisima said earlier.

This meant, he said, that at least 1,071 pawnshops did not file returns and, therefore, did not pay taxes last year. The average tax payment of each pawnshop also fell to P315,812 last year from P363,085 in 2011, he said.

The release of the records on pawnshops is part of the DOF’s shame campaign that focuses on certain industries to illustrate the extent of tax evasion across the country, particularly among businesses and self-employed individuals.

While Espenilla did not deny the existence of possible tax cheats in the pawning industry, he noted efforts in recent years of the BSP to clean up the sector, which historically had been prone to certain criminal activities.

“Pawnshops are legitimate financial intermediaries. They meet a need,” Espenilla said. Unlike banks, pawnshops do not use deposits from the public to lend to clients. Hence, pawnshops are subjected to an entirely different set of rules. “The issue is not safeness and soundness,” he said.

He said the main issue with pawnshops revolved around anti-money laundering allegations. Pawnshops in the past have also been a favorite for thieves looking to unload stolen products, in violation of local “anti-fencing” regulations.

To counter this, the BSP requires banks to follow strict “know-your-pawner” rules. “We have a very active program on inspecting pawnshops,” he said.


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  • iamjustjuan

    i wonder how much this drive will net? P10billion sana to make up for the stolen pork…?

  • linobog

    Mr. Espenilla has forgotten that pawnshop is a very lucrative business, in fact branches are growing everywhere like mushrooms. Your information that some may have already closed is a flimsy reason. You are just putting your banking competence in a questionable position. Nevertheless, can you tell the people how many were closed and how many were newly opened? Let’s see………

  • eight_log

    Hindi ako magtataka kung ang mga mayari ng mga pawnshops na yan ay karamihan ay mga taga BSP or mga kaibigan at kamaganak!!! What a very convenient place to launder money and to evade taxes ….!!!!

    • Eddwardd

      dre, posibleng tama ang hinala nyo..pero kung batas ang pag uusapan, malabo mangyari yang sinasabi nyo…eh kung mag aaplay ka palang sa bangko for any vacant position kung anu ano na ang mga info ang hihingin sau how much more sa BSP…like, may kamag anak ka bang nag work sa bangko–if yes, anong branch, position, etc…

      dre, nauunawaan ko ang saloobin nyo pero mag ingat nmn kau paminsan minsan sa mga usaping ito at sinisingit nyo pa o dinudugtong nyo pa ang iyong ‘political wrath’ and dissatisfaction sa bawat sangay ng pamahalaan..maging maingat kung wlang sapat na kaalaman sa usaping financial regulation,, atbp…(disclosure: ako po’y isang pribadong tao at wlang kamag anak na nagtatrabaho sa bsp.)

      experience-wise, tama ang sinabi ng bsp..sna nmn bir maging responsible nmn kau sa mga ginagawa nyo…bago maglabas ng mga pangalan o impormasyon base sa data nyo dpat i verify nyo muna ito gaya ng pagpunta sa address ng mga pawnshops na ito…

      nalaman ko nlng ang ganitong bagay nung ang kaibigan ko ay nagkaroon ng negosyo at kinalaunan isinara din nya..khit hindi na nag ooperate ang negosyo nya patuloy pa rin siyang nag file ng tax dun sa bir na umabot pa ng 11 months khit wla na siyang babayaran khit isang sentimo dhil nga sarado na ang kanyang negosyo…at itoý ayon sa payo ng kanyang cpa-lawyer…

      • eight_log

        Ang kalakalan sa Pinas ay kung legit ka … pahihirapan ka …. kung gusto mo walang hirap … pwede rin. Of course meron kapalit!!! Marami dyan na magkakapatid magpipinsan na sa bangko nagtatrabaho. Ilan bang bangko na pagaari lang ng isang pamilya at ang buong pamilya ay empleyado ng bangko?

        Umutang ka sa bangko … kung ano anong collateral at certificates ang hahanapin sa yo … pero kung kagaya ka ni Ongpin … laway lang ang kailangan! Umuobra ba ang batas sa ganyan? Sa mga maliliit at mga legit lang nagaapply ang sinasabi mo law.

        Ngayon merong nagtatayo ng pawnshops para lang magevade ng tax … register it … kunwari you are doing a business …. you infused so much capital … at the end of the year sabihin mo nalugi … laki ng tax deductions mo … Lol!!! Payo din yan ng CPA LOOyer!!!!

      • californiaflip

        High ranking BSP official owns a rural bank that should have been closed a long time ago. Guess who?

      • californiaflip

        Dexter naman, the Rural Bank of San Jacinto was founded in 1968. I research my comments.



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