Monday, 23 May 2022

IRONY OF IRONIES: ONLI IN DA PILIPINS

 


“The three most important ways to lead people are: by example… by example… by example…” (Albert Schweitzer, German theologian)

“Setting an example is not the main means of influencing others, it is the ONLY means.” (Albert Einstein)

“What you are, speaks so loudly, I can’t hear what you are saying.” (Ralph Waldo Emerson)

Forbes reported, “When former President George W. Bush, Clinton, and Obama announced, they would receive their Covid-19 vaccinations on camera to help bolster public confidence in getting the shot, the three men provided business executives with a timely reminder about the importance of leading by example.”

DQ CASE

As PDInquirer reported, it is about a complaint filed against Marcos Jr. before a Quezon City court – he breached the 1977 Internal Revenue Code when he failed to file his income tax returns from 1982 to 1985 and failed to pay his income taxes. The Quezon City court in 1995 found Marcos Jr. guilty and imposed nine years imprisonment as a penalty. The court also directed Marcos Jr. to pay the fine for his failure to file his income tax returns and pay his taxes.

The case was elevated to the Court of Appeals which, after two years, affirmed the lower court’s ruling and ordered Marcos Jr. to pay the deficiency income taxes due with interest – a total of P36,000 fine.

Marcos Jr. took the case to the Supreme Court but eventually withdrew it making the decision of the Court of Appeals final and executory.

Marcos Jr. filed his COC to run for president where he declared his eligibility. He answered “no” to the question if he has been found liable for an offense that carries the penalty of perpetual disqualification to hold public office.

The Comelec division dismissed the petition to cancel Marcos Jr’s COC which the Comelec en banc affirmed.

Taking the case to the Supreme Court, the petitioners said the Comelec committed grave abuse of discretion when it refused to cancel Marcos Jr.’s COC – void, in fact, from the beginning.

 FALLOUT

There is more to this crucial case being deliberated now at the Supreme Court than meets the eye. Presently, for my wife and I, not only is this case about Marcos Jr. becoming our country’s next president or not, but also how the aftermath will affect us as citizens of this country.

The following paragraph I had written in my past Atabay article “Trust Is the Foundation of Any Relationship” showed our being dutiful tax-paying corporate workers.

“Many years ago, I worked in a manufacturing plant; she, in a bank. After we got married, we started filing our joint income tax returns. Sad to say, our combined withholding taxes would always fall short in our joint income tax due. Out of our civic duty, we paid the difference from our hard-earned savings. We did it yearly until the computerization perfected the system: our combined withholding taxes added up to our required joint income tax, hence, preserving our hard-earned savings.”

This year, as retirees, we would be paying again our annual real property taxes.  For many years in the past, as law-abiding citizens, we always have paid our real property taxes even long before the deadline so we could avail ourselves of the discount to reduce the amount slashed from our pensions.

What’s more, my wife inherited from her parents a piece of agricultural land that has accumulated a chunk of unpaid taxes. The inherited land could not yield then enough coconut harvests to cover both the household basic needs and the payment for the annual taxes.

Today, honestly, as far as the payment of our taxes is concerned, we are in “stand-by” mode. Hanging out for the resolution of the case, we are watching like a hawk how the civic duty of the citizens in paying or the failure in paying taxes will be adjudged by our Supreme Court – the highest tribunal, the authoritative guardian, and the final arbiter in the land for all cases and controversies arising under the Constitution ensuring the Filipino people the promise of equal justice under the law.



GOLD STANDARD

“May gatas pa sa labi” our Pinas vis-à-vis our big brother, U.S.A. What is the common denominator among these three people? Walter Anderson, the executive, Al Capone, the gangsta, and Wesley Snipes, the “Blade” star. They are among the Famous Tax Cheats listed by Investopedia.

The largest tax evasion in U.S. history, the Anderson case was about the former telecommunication executive accused of hiding his earnings through the use of aliases, offshore bank accounts, and shell companies. Entered a guilty plea and admitted to hiding approximately $365 million worth of income, Anderson was sentenced to nine years in prison, and restitution of $200 million.

Ganged up in a mixed bag of illegal acts like bootlegging, prostitution, and murder, Capone earned $100 million a year. It took a single illegal act that landed him in prison – income tax evasion. Interestingly, the removal of the word “lawful” from the 16th Amendment in 1916 put criminals like Capone in a bind: they could either admit breaking the law and file taxes (essentially confessing) or cheat on taxes. Picked the latter, Capone was sentenced to 11 years in prison.

Allegedly hiding his income in offshore accounts and failing to file his income tax for several years, Snipes, the “Blade” star, incurred a federal tax debt of around $12 million. Although acquitted of felony tax fraud and conspiracy charges, he was found guilty of misdemeanor charges that put him in prison for three years only, while his accountant, interestingly, was sentenced to 10 years.

While the U.S.A. put their celebrity tax evaders in prison, sad to say, our top tax evader we elected to become our next president.

IRONY OF IRONIES

If Marcos Jr. becomes president, the unpaid P203-billion estate tax his family owes the Philippine government is “gone forever,” according to retired Supreme Court Associate Justice Antonio Carpio.

“[BIR] will collect that if you are an ordinary person,” Justice Carpio said. “But if you are a government official, you are a senator or governor, they will not collect it. How much more if you are now president?”

That reminds me of the “Queen of Mean” hotel operator, Leona Helmsley, who accumulated a multi-billion dollar real-estate portfolio in the U.S. She was accused of billing millions of dollars in personal expenses to their business in order to evade taxes. She served 18 months of federal prison time. Her infamous words: “We don’t pay taxes. Only the little people pay taxes.”

Onli in da Pilipins!

Chilling out a bit, what can be more tranquilizing in ending this knotty article than the Beatles’ song, “Taxman.”

One, two, three, four

One, two, (one, two, three, four}

Let me tell you how it will be

There’s one for you, nineteen for me

‘Cause I’m the taxman

Yeah, I’m the taxman

Should five percent appear too small

Be thankful I don’t take it all

‘Cause I’m the taxman

Yeah, I’m the taxman.


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