Tag Archives: Bureau of Internal Revenue

DOLLAR REMITTANCES TO THE PHILIPPINES WILL BE TAXED 35 PERCENT

imageMANILA, Philippines (The Adobo Chronicles® ) –  It seems like the Philippine government has waged an all-out war against its own citizens — especially overseas Filipino workers (OFW) and their families.

First, the Bureau of Customs announced new rules on balikbayan boxes, including opening them for inspection when they arrive at the Philippine port of entry. (Balikbayan boxes are those corrugated boxes used by OFWs to ship goods and gifts to their loved  ones in the Philippines. Until recently balikbayan shipments have been tax-free. )

Today, Commissioner Kim Henares of the Bureau of Internal Revenue (BIR) announced that dollar remittances from OFWs will be subject to a 35 percent ‘gift tax.’

The Philippines ranks as the fourth biggest recipient of remittances worldwide with an estimated $24-billion inflow annually,  according to a World Bank (WB) study. Remittances accounted for 12 percent of the Philippines’ Gross Domestic Product (GDP) the report said.

The Philippines trailed India , China and Mexico in terms of remittances received.

Henares said that the BIR is always looking for ways to earn tax revenue in order to sustain the Aquino administration’s anti-corruption policy of ‘Daang Matuwid’ (straight path).

“Strictly speaking, dollar remittances would be considered income for Filipino families and individuals on the receiving end of the money and should therefore be subjext to tax,” Henares said.

Updating: Henares Responds

KIM HENARES: PHILIPPINES’ TAX WOMAN QUITS, JOINS THE MILITARY

imageMANILA, Philippines (The Adobo Chronicles® ) – Filipino champion boxer Manny Pacquiao can now breathe a sigh of relief. Kim Henares, the Philippines’ chief tax woman who has been aggressively going after his prize winnings, has resigned.  Effective immediately, Kim Henares is no longer the commissioner of the Bureau of Internal Revenue (BIR).

The reason? Henares has a found a new calling as a member of the Philippine military. Not just an ordinary member, but a Lieutenant Colonel in the Air Force.

The now former BIR chief said that she is tired of being criticized for her no-nonsense campaign to collect taxes from Filipinos, especially highly-paid athletes and celebrities. “If I can’t do my job without being seen as a villain, what’s the point?” she asked.

Henares received her credentials at formal ceremonies held today at Camp Aguinaldo, the main headquarters of the Armed Forces of the Philippines.

Incidentally, Pacquiao is also a lieutenant colonel in the reserve force of the Philippine Army.

PHILIPPINE TAXWOMAN CAN’T WAIT TO LAY HER HANDS ON MANNY PAQUIAO

Henares, left, and Pacquiao
Henares, left, and Pacquiao

MANILA, Philippines (The Adobo Chronicles® ) – The Philippines’ tax woman, Bureau of Internal Revenue Commissioner Kim Henares, just can’t wait to lay her hands on Filipino champion boxer Manny Pacquiao, a member of Congress.

Pacquiao is the richest member of the House of Representatives and the only billionaire.

Based on his 2014 statement of assets, liabilities and net worth (SALN), Pacquiao is worth P1.6 Billion, an increase by P343 Million from the year before.

However, the figure does not include the reported $150 Million Pacquiao earned from his fight with American Floyd Mayweather last May. That alone is equivalent to P6.6 Billion which is six times his net worth in 2014.

In a statement following the release of Pacquiao’s 2014 SALN, Henares told reporters, “I want Pacquiao to pay up now and not wait for next year.  We need the money to cover the billions of pesos we lost in last year’s pork barrel scam involving businesswoman Janet Lim Napoles, senators and other elected officials.”

Henares said Pacquiao should show that he is sincere in his role as a public servant and elected official by voluntarily paying all taxes due.  “He should do it now, and not wait for next year,” she added.

Seven of the richest members of the House of Representatives have grown richer by a combined P1 billion, while former first lady Imelda Romualdez Marcos of Ilocos Norte has gone poorer by P5 million.

Still, Marcos is the third wealthiest House member and is worth P917.8 million, based on her 2014 SALN.  She became poorer because she increased her liabilities from P10 million in 2013 to P15 million. The value of her real properties remained the same at P920 million and personal assets at P12.8 million.

The second richest congressman, Speaker Feliciano Belmonte Jr., grew his wealth by P102 million, from P819.7 million to P921.6 million.