MANILA, Philippines - The Bureau of Internal Revenue (BIR) reiterated its list of individual taxpayers with the highest income tax payments was based on compensation income, not from non-employment-related activities.
“The list is based on taxes due from regular income reported in the ITR (income tax return),†BIR commissioner Kim Henares said.
Henares made the statement following complaints received from several businessmen who were not on the annual list of the country’s top 500 individual tax return filers.
Some businessmen said the BIR’s list does not paint a good picture of them as they may be perceived as tax dodgers.
The BIR list also showed that some tycoons paid less than the amounts the agency received from other businessmen, bankers and celebrities.
Former senator Manuel Villar, who paid P72.29 million in taxes for the sale of shares in property holding company Vista Land and shopping and office concern Starmalls, was not included in the list of BIR’s highest individual taxpayers.
Villar also paid P72,950 in income tax in 2012 for his salary of P420,000 at the Senate.
Henares pointed out that passive income and other sources of income comprising interest from foreign and Philippine currency bank deposits as well as capital gains from sale of shares of stock are not subject to regular income tax.
“A stock transaction tax is not an income tax. It will not be counted if it is a stock transaction or capital gains tax or a tax on dividends and interest. That’s the reason why he was not included because the list refers to the top 500 taxpayers who paid regular income tax,†Henares explained.
Nick Lagmay, spokesman for businessman-stockbroker Robert Coyiuto, said the BIR should also include other kinds of income to be fair to those who pay other taxes.
Lagmay said Coyiuto, who was also not included in the list, paid P104.78 million in dividend tax to the government.