Press Release
March 19, 2007

TAX INVESTIGATIONS MUST BE SUSPENDED
DURING ELECTION SEASON -- PIMENTEL

Senate Minority Leader Aquilino Nene Q. Pimentel, Jr. (PDP-Laban) today urged Jose Mario C. Buag, Chief of Bureau of Internal Revenue (BIR) to suspend all investigations of suspected tax deficiency or evasion cases during the election period to allay apprehensions that such activity may only be used to harass taxpayers and extort money from them to beef up the already bulging campaign kitty of the administration.

Pimentel, however, said that there should be no disruption of normal or regular tax payment and collection activities especially with the deadline for the payment of income tax on March 15 for those in the public sector and April 15 for those in the private sector.

The BIR should stop tax investigations during the election season. By doing so, it would end speculation that it is being taken advantage of by the administration for election-related fund-raising activities, he said.

The opposition leader said that the tax investigation during this period would only prove disadvantageous to the government because of the likelihood of tax-fixing whereby the tax liabilities of taxpayer would be considerably reduced in exchange for bribe money to the revenue officers.

Pimentel said it is also possible that some corrupt revenue examiners and collectors may engage in extortion activities by making it appear that they are under instruction from highers-up to collect contributions from wealthy taxpayers and meet the so-called quotas to fund the administrations election campaign even if there is no such fund-raising directive.

The minority leader called on taxpayers to be vigilant by resisting and exposing such despicable and unlawful practice by reporting it to the authorities.

Pimentel said the government will be able to collect enough money to finance much-needed projects and basic services and avoid or greatly reduce its budget deficit if tax evaders already identified by the BIR are assessed and dunned for what is due to the government.

The people will even be spared of paying Value Added Tax or higher VAT rate if the BIR can collect from notorious, big-time tax-evaders, he said.

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