Abad clarifies income tax payments

I am writing with respect to the article “Before joining Cabinet, Abad paid P8,150 income tax,” which was written by Jess Diaz and was subsequently published yesterday (May 30) in The Philippine Star.

I have always believed that it befits public servants – particularly those in positions of authority – to conduct themselves with absolute transparency and accountability, and to welcome public scrutiny when the need for it arises. Public office, as they say, is public trust, and for good reason: we serve at the pleasure of the Filipino people, and the standard of our work must do justice to that. It is likewise apt for us to exercise great prudence in managing our assets and finances, and to make timely and accurate disclosures on our net worth as the law requires.

I mention all this because Mr. Diaz’s piece – and the inflammatory headline that accompanies it – seems to imply that I had not been paying the proper taxes before serving as DBM Secretary under the Aquino administration. Despite the fact that I had sufficiently clarified the issue with Mr. Diaz, the story was not only published by The Philippine Star; it was also featured prominently on the paper’s front page, along with a photograph of myself rubbing my eyes, with my hands obscuring half my profile.

I question The Philippine Star’s decision to run a story that serves no clear purpose, except perhaps to cast doubt on my integrity as a public servant. Such a piece would have been valuable if I had been slyly evading my tax duties from 2007 to 2009. But I did satisfy my income tax requirements for those three years, all in full accordance with tax rules.

That I paid only P8,150 in taxes was, as I explained to Mr. Diaz, reflective of the fact that I was not regularly employed from 2007 to 2009. I can assure you that such a position is not enviable, and that paying only so much in taxes as a result was no cause for celebration. But what did bring me comfort then were the advocacies I could finally devote my time and energy to, causes that I knew could make a real and positive impact on Philippine governance reform. Among these was the work that I did with the International Center for Innovation, Transformation and Excellence in Governance (INCITEGov) – which I and the other members of the so-called Hyatt 10 organized – as well as other initiatives that were aimed at exposing the rampant corruption and impunity of the Macapagal-Arroyo administration.

True, I didn’t earn much from all this; the taxes I paid in that three-year period almost seem like a joke. But bigger and more urgent things were at stake for the country, and this was work that I was more than willing and happy to accomplish.

But more objectionable than Mr. Diaz’s piece, however, was the picture that The Philippine Star chose to publish with the article. I’m not one to complain about unflattering photos of myself – and believe me, I’ve had my share of these – but the image that accompanied the article was not merely unbecoming. It was inappropriate and uncalled for. The article by itself was damaging; the picture that came with it was nothing short of damning. With such a suggestive photo paired with Mr. Diaz’s article, how could the ordinary reader resist the conclusion that I had indeed shirked from my tax duties and robbed the state of precious revenue?

Over the last year, I have had to defend myself from a broad scope of allegations, ranging from the fantastic to the downright malicious. I don’t wish to paint myself the victim here; these challenges are par for the course when you immerse yourself in the Philippine bureaucracy, where dubious interests and the unrelenting pursuit of power continue to hold extraordinary influence.

Still, I do believe that The Philippine Star must neither encourage nor tolerate these forces and interests. I have nothing but the deepest respect for your publication, and have frequently observed your reportage to be both fair and balanced. I’m afraid, however, that Mr. Diaz’s piece – and more significantly, the picture used for it – don’t particularly agree with the journalistic values that The Philippine Star has been known to uphold.

I respectfully ask that you publish this letter in full, and I thank you as well for your generous consideration. – Florencio B. Abad,
Secretary,
Department of Budget and Management