NOV.

29, 2011 DATE

NR # 2602C
REF. NO.

Committee on Ways and Means decides to subpoena DOF Secretary and BIR Commissioner to attend hearing Members of the House Committee on Ways and Means today moved to subpoena Finance Secretary Cesar Purisima and Internal Revenue Commissioner Kim JacintoHenares to appear in next weeks hearing to defend the issuance of the controversial Revenue Memorandum Circular 40-2011 issued by the BIR last September 05, 2011 requiring the disclosure of additional detailed income information of taxpayers. Upon motion of Rep. Magtanggol Gunigundo (2nd District, Valenzuela City), the committee agreed to subpoena both officials who both failed to show up during the panels hearing today. Secretary Purisima should appear before the committee and defend the actuations of Commissioner Henares regarding RMC 40-2011, said Gunigundo. The committee decided to also subpoena Henares after failing to attend todays hearing despite a previous invitation. She managed to show up last week but refused to withdraw her RMC 40-2011 despite appeals of solons. In her letter to Committee Chairman Rep. Hermilando Mandanas (2nd District, Batangas), Henares said she had been informed that Purisima will not be able to attend the hearing because of a scheduled trip to Korea. It is for this reason that I will not be attending the November 29 committee hearing, she said. Rep. Rufus Rodriguez (2nd District, Cagayan de Oro City) said Purisima and Henares could be cited for contempt if they still fail to attend the hearing on December 6. In a separate letter sent to Mandanas dated November 28, 2011, Purisima said he will not be able to attend todays hearing because of a scheduled trip to Busan, Korea for the Fourth High Level Forum on Aid Effectiveness from November 29 to December 1, 2011. However, after discussions with Henares, Purisima said it was agreed that some revisions to BIR Form No. 1700, 1701 and 1702 be made. Hence, the issuance of Revenue Memorandum No. 57-2011 which effectively amends RMC 40-2011, he said. Purisima explained the amendments consist mainly of making the disclosure of Supplemental Information under BIR Form Nos. 1700 and 1701 optional on the part of the taxpayer for income tax filing covering and starting with calendar year 2011, due for filing

NOV. 29, 2011 DATE

NR # 2602C
REF. NO.

on or before April 15, 2012, and renaming of BIR Form No. 1702 as a November 2011 version. But lawmakers expressed disappointment and disagreement to the non-withdrawal of RMC 40-2011. Rodriguez cautioned that optionality as provided in RMC 57-2011 can lead to the prosecution of a taxpayer. Rep. Ma. Milagros Magsaysay (1st District, Zambales) said the BIR would be incriminating taxpayers by exacting additional information about their passive income in compliance with the new revenue memorandum circulars. You can use this additional information as basis to go after taxpayers. You can harass taxpayers because you know this information about their income. That is witch hunting. Rep. Sigfrido Tinga (2nd District, Taguig City) said the BIR is chasing data on tax that is already collected. Im at a loss why we are debating this. It should be thrown out. It doesnt accomplish the goal of BIR to raise revenue. Henares was represented by lawyer Jethro Sabariaga, chief of the legal office of the Commissioner. He said it would folly on the part of the BIR to assume there is income when there is no such declaration on the part of a taxpayer. (30) rbb