House to probe Del Monte tax issue

The House of Representatives is planning to fast-track the passage of a bill that will put in place a more stringent procedure that the Bureau of Internal Revenue (BIR) must follow when dealing with protested assessment cases.

Quirino Rep. Dakila Carlo Cua, who chairs the House ways and means committee, also told reporters that they would launch an inquiry on the huge discrepancy of the taxes paid by Del Monte Philippines Inc. to the BIR for the period 2011 to 2013.

During a briefing hosted by the committee, BIR officials said the tax assessment for Del Monte for the three-year period totaled P8.7 billion. However, Del Monte ultimately paid only P65 million to the BIR.

This development irked House Speaker Pantaleon Alvarez, who berated Internal Revenue Commissioner Caesar R. Dulay during the briefing.

While Dulay said that he did not personally approve the transaction, which he clarified was not a tax settlement, Assistant Commissioner Teresita Angeles said “it was approved under the authority of the BIR Commissioner, as delegated to me.”

“In the assessment and collection process of the BIR, we follow the Tax Code. They do not have to pass through the office of the commissioner,” Dulay explained.

But for Alvarez, the BIR commissioner should put in place parameters guiding cases of protested assessments. “You should adopt a new policy on that,” Alvarez told Dulay.

In response, Dulay said that while a more stringent process would result in more work for the agency, they would study the Speaker’s proposal.

But Alvarez was stern and ordered Dulay: “Do not study it—do it! Even if it’s difficult, you must do it.”

For his part, Cua said the Speaker’s proposal could still be included in the first tax reform package.

“It’s still pending in the Senate and since [the Speaker’s proposal] is on tax administration, the Senate can still take it up,” Cua noted.

“We need to prioritize that because, as the Speaker said that we wanted to pursue tax reform, there were doubts about how the BIR collects taxes. There has to be change in the bureau,” Cua added.