It seems like the BIR is doing a good job running after tax evaders under its ongoing Operation: RATE. I've read that it has already filed cases against famous showbiz personalities Richard Gomez, Regine Velasquez, and recently Judy Ann Santos. BIR says that 92.5% of these showbiz personalities pay only about 0-1.5% tax on their gross incomes. Now, why am I not surprised to know that there is widespread tax violation in the entertainment industry?
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Aside from showbiz personalities, BIR also have filed cases against some big companies (Mendez Medical Grp., Columbia Sports, CAP, PT&T..), a former AFP comptroller, Taulava (basketball star), and Douglas Quijano.
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Finance undersec Bonoan said that "Power and fame are not tickets to immunity". (Really?) And in fairness, there is a good indication that they might be true to their words. But not until they run after the 'bigger' fishes (politicians e.g. the President herself, big time businessmen, e.g. Henry Sy, Lucio Tan..) will my apprehensions dissipate.
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I just hope that tax collections go to where it should go. Meaning, not to the pockets of greedy and shameless politicians (which is quite unlikely).
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An issue came out that the BIR runs after entertainers who sided with FPJ last elections (i.e. Juday and Goma). Like duh?! Ikonek ba lahat?
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What bothers me is an article in Inquirer last week (I'm not sure if its in the Editorial because I could not find it in the Archives of its website anymore) that says something to the effect that it would already be easier for the common people to accept the increase in VAT, after all, the 'big fishes' are already made to pay the right amount of taxes. Am I the only one who thinks this is absurd? This VAT issue is not an issue of bandwagon effect. Increase in VAT is widely opposed because of several reasons and not just the mentality that 'many people do not pay taxes, why should I?'
For one, an increase in VAT does not take into consideration the root cause of the problem (the fiscal crisis as the government claims). What it offers is a mere quick-fix solution to satisfy the demands of our creditors (IMF, World Bank). Second, an increase in VAT will be worsened by increase in the prices of goods and services (is it not apparent that the consumers are the ones who will shoulder this?). And lastly (I think), 78% of us do not even earn enough to meet the daily cost of living of P492.19 (Ibon facts and figures)... do I need to explain why the people need not be further burdened by an increase in VAT? Geeez!
