STARTING this year, the association dues paid by homeowners living in subdivisions will go up by 3 percent. The additional amount, which is intended to enrich the government coffers, represents the 3-percent tax the Bureau of Internal Revenue (BIR) has imposed on the monthly contribution of homeowners to their association. The collection starts this month.
Here is the impact of the Aquino administration’s 3-percent tax on association dues: As early as December 18, 2013, we were informed by the Santa Rosa Estate 1 Association Inc. of the additional financial burden, which, as computed, would amount to P470.34 million. This means we were to pay our association P16,148.34 for 2014. If a million homeowners living in subdivisions who are as willing as we are in being forced to become good tax-paying citizens, then this administration would be able to raise P470.34 million in one year.
Where and how President Benigno Aquino 3rd and his Budget secretary, Florencio Abad, would spend the billions that would result from the BIR’s share from the non-stock-non-profit homeowners’ associations would be anyone’s guess. Remember our subdivision is only one of so many in this country where workers in Metro Manila preferred to live to escape the city’s high-cost of living. Then Henares became BIR commissioner and has been going after them. Harassing them—and us—would be the better two-word phrase to use.
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Aquino must really love Kim Henares, who as BIR head is his chief tax collector. With their effective partnership in making subdivision living more costly, the public should worry more about what she would do next to please his boss in Malacañang. Definitely, she would not run after Golden Donuts Inc. (GDI) to be able to collect P1.51-billion tax deficiency the company owes BIR for fiscal year 2007.
With her selective policy in going after tax evaders, Henares should stop BIR’s “Run-after-Tax-Evaders” program. A slogan becomes useless when its leader applies the rule and the laws selectively. Is she afraid to touch the friends of the regime like GDI? To her and to her president, boxing champion Manny Pacquiao would be easier to fight than the businessmen who sell a round sweet bread with a hole in it that Henares and Aquino must love very much.
The problem with Henares and her RATE effort is that her campaign may not rate anymore. Who would report tax evaders even if reporting would merit them some financial rewards? What if you, for instance, squeal on some a big business who owes a billion or may be more, but happens to be a powerful to be feared or happens to be a friend of some powerful people in government? Chances are, your letter would be end up among the BIR’s dead files waiting for the next commissioner of the succeeding administration to pick it up for potential source of public funds. But the next president, whoever he or she would be, should be someone without any link to anyone among Malacañang’s present occupants led by their chief. Otherwise, the dead files would continue to accumulate until they cover the entire BIR building.
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We have received feedbacks from the public regarding our expose on GDI’s P1.5-billion tax deficiency. Not a few wondered how this has been allowed to happen. Due Diligencer has already identified GDI’s stockholders and it is up to the readers of The Manila Times to judge for themselves where the company’s owners draw their power that President Aquino and Henares fear them very much.
Certainly, President Aquino and Henares would not be afraid of Dunkin’ Donuts America Inc., which owns the product, while GDI is its Philippines’s exclusive seller. They should not because DDI deals only with its local franchisee who remits to it its share from the Philippine business.
What DDI would be more interested in is its fair share from the local sales. But the question that may be asked is this: Did GDI compute DDI’s share based on its audited financial filings with the Securities and Exchange Commission or its reports to the BIR?
Incidentally, a finding of an audit done by Otello Dalanon, who is a former revenue officer having resigned from the BIR after the results of his audit have been ignored by Henares and her predecessor, showed the truth: GDI had two sets of numbers on sales in a certain year. One contained a “net taxable income of P135.2 million” while the annual income tax return reflected a net loss of P44.9 million.”