Bebot Alvarez hits BIR’s double standards: Easy to forgive companies, eager to tax Hidilyn Diaz

By Billy Begas

Former Speaker Pantaleon Alvarez said it is unfortunate that the Bureau of Internal Revenue (BIR) “was quick to forgive and compromise” billions of uncollected taxes from multinational companies while it shows eagerness to collect taxes from the rewards and winnings of Hidilyn Diaz.

“This is alarmingly unfortunate. And it is both morally and legally wrong,” Alvarez said.

To make matters worse, Alvarez said the compromise entered into by the BIR with big companies “appears to have skirted legal procedures designed to prevent abuse” under the National Internal Revenue Code of 1997 (Republic Act 8249).

Alvarez said that while the BIR claimed that the awards and prizes of Diaz are exempted from income tax it said that the donor’s tax of six percent applies.

He expressed belief that BIR is applying the wrong law against Diaz. He cited Republic Act 7549, “An act exempting all prizes and awards gained from local and international sports tournaments and competitions from the payment of income and other forms of taxes and for other purposes…”

Alvarez explained that under Section 1 of RA 7549 it is clear that “all prizes and awards granted to athletes in local and international sports tournaments and competitions held in the Philippines or abroad and sanctioned by their respective national sports associations shall be exempt from income tax: Provided, That such prizes and awards given to said athletes shall be deductible in full from the gross income of the donor: Provided, further, That the donors of said prizes and awards shall be exempt from the payment of donor’s tax.”

“That’s how important this piece of legislation is. The BIR, if it can be generous to MNCs (multinational companies) and reduce their tax dues through questionable compromises, should – at the very least – be mindful insofar as how it treats the awards and prizes of our national athletes who have worked hard and given honor to our country. Our athletes deserve better,” he pointed out.

“The legal basis to exempt Hidilyn Diaz’s awards and prizes is found in Section 1 of R.A. 7549, a law which took effect on May 22, 1992,” Alvarez added.

Alvarez said that if the BIR insists that Diaz’s awards and prizes are taxable, “Congress should investigate why its leadership is making certain decisions, compromises included, that are not supported by law.”

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Source: Latest Politics News Today (Politics.com.ph)