5 lawyers floated as candidates for DOF usec

The government is choosing among five lawyers from the public and private sector as the possible replacement for former Finance Undersecretary Gaudencio Mendoza Jr. whose resignation took effect last April 1.

Industry sources said the government is looking at two BIR assistant commissioners, Estela Sales and James Roldan, assistant commissioners for inspection service and legal service, respectively.

The government is also considering Philippine Stock Exchange general counsel Ruel Refran, lawyer Danilo Uy of the Office of the Solicitor General and lawyer Catherine Manahan of Isla Lipana & Co.

Sources said Refran was chief of staff of former Sen. Ralph Recto while Roldan previously served as director of the International Finance Operations Office of the Finance department.

Mendoza, who used to head the DOF’s Legal and Revenue Operations Group, cited personal reasons for his resignation.

During the weeks leading to his resignation, however, he has been at the center of controversies with Finance department insiders saying that he has been the reason for the delay in Finance Secretary Margarito Teves’ appointment by the powerful Commission on Appointments.

This as Mendoza caught the ire of lawmakers after he issued a ruling reducing the excise tax slapped on Pall Mall cigarettes produced by British American Tobacco.

This DOF ruling, which has been widely and strongly criticized by lawmakers, reversed a decision by the Bureau of Internal Revenue (BIR) on Pall Mall cigarettes.

The BIR had slapped the Pall Mall brand of cigarettes an excise tax rate of P26.06 per pack, saying that the brand is high-end and is sold at duty-free-shops.

British American Tobacco, the owner of the Pall Mall brand, appealed to the DOF which then reversed the ruling and instead taxed Pall Mall at a lower rate of P6.74 per pack.

The controversial ruling has been criticized by lawmakers and cigarette firms. Mendoza later on reversed the ruling anew and affirmed the BIR’s original ruling which slapped Pall Mall an excise tax rate of P26.06 per pack.

Prior to his resignation, Mendoza heads the DOF’s all-out campaign against erring revenue officials and employees under the RIPS (Revenue Integrity Protection Service).

Finance Undersecretary Gil Beltran has been tasked to oversee the operations of the agency’s Revenue Operations Group so as not to derail the government’s campaign against corrupt officials and employees.