Palace vows relentless drive vs tax cheats

Malacañang reiterated its determination yesterday to go after tax evaders in line with its efforts to raise badly needed revenue and plug the budget deficit.

This came after it was reported that the government has lost in court against 22 large companies accused of tax evasion.

Presidential Spokesman Ignacio Bunye described the court decisions as merely "temporary setbacks."

"The government is determined to prosecute tax evaders to the hilt and has mustered the best legal support it can from the official ranks and from volunteers," Bunye said in a statement issued by the Palace.

Bunye said a "strong drive against tax cheats is being waged alongside our program to raise more revenues."

"Tax litigation is at times costly, tedious and lengthy but our prosecutors will be relentless in their efforts."

The Arroyo administration plans to save or raise at least P100 billion to narrow the perennial budget deficit, which it says is crucial to its 10-point program aimed at easing the wrenching poverty in the country.

Also part of the plan are eight administration-backed tax bills that the Palace expects to bring in an additional P80 billion. But the measures are encountering some resistance in Congress.

To stamp out corruption, which has partly been blamed for the budget deficit, President Arroyo has batted for a program to protect whistleblowers.

Pampanga Rep. Juan Miguel Arroyo, a son of Mrs. Arroyo, filed House Bill 2388 last week proposing protection and rewards for whistleblowers. It also seeks immunity for informants if necessary.

Surigao del Sur Rep. Prospero Pichay, who supports the bill, said the measure would give teeth to the government’s ongoing anti-corruption campaign and help win convictions in court cases.

"For this to happen, we must ensure adequate safeguards are in place for our witnesses," Pichay said in a statement.

Various international agencies have expressed concern about massive corruption in the Philippines, which analysts say has discouraged foreign investors.

Independent estimates suggest at least a fifth of the government budget is lost through graft.

One local watchdog group, Procurement Watch Inc., estimates that the Philippines loses P21 billion a year to corruption in the procurement of government goods and services alone.