DOF, BSP ask Congress to lift bank secrecy
Published Oct 9, 2019 12:00 am
By Chino S. Leyco
The Department of Finance (DOF) and the Bangko Sentral ng Pilipinas (BSP) will jointly ask legislators to ensure that the congressional approval of a general tax amnesty law will also enable the government to finally break the walls of bank secrecy in fraud cases.
Finance Secretary Carlos G. Dominguez III said BSP Governor Benjamin E. Diokno has informed him that the central bank wants to get involved in efforts to convince the Congress that lifting bank secrecy law is a crucial and indispensable part in the grant of amnesty to erring taxpayers.
The Philippines and Lebanon are the only countries in the world that still implement stringent bank secrecy laws.
Dominguez directed Finance Undersecretary Gil S. Beltran to ensure that the Congress is aware of the joint DOF-BSP position on the issue.
“Make sure that the general amnesty and the lifting of the bank secrecy — it has to be together,” Dominguez told Beltran during a recent DOF Executive Committee meeting.
Package 1B of the Duterte administration’s comprehensive tax reform program (CTRP) covers the proposed general tax amnesty along with the lifting of bank secrecy laws and the automatic exchange of tax information among regulatory agencies.
It also includes a proposal to adjust the Motor Vehicle Users’ Charge (MVUC).
Republic Act (RA) No. 11213 or the Tax Amnesty Act was signed into law by President Duterte last February, but he vetoed a provision granting amnesty to people who failed to pay the correct taxes in 2017 and earlier because it lacked a provision on the lifting of bank secrecy.
The provisions on the amnesty on delinquent estate tax taxes was retained in RA 11213.
President Duterte said a general tax amnesty without the lifting of bank secrecy laws would only lead to revenue losses for the government and encourage tax evasion.
Dominguez said the President “was constrained to veto the portion of the law covering the general amnesty because of the lack of provisions breaking the walls of bank secrecy, setting the framework for complying with international standards on exchange of information, and other safeguards against those who abuse by declaring untruthful assets or net worth.”
Finance Secretary Carlos G. Dominguez III said BSP Governor Benjamin E. Diokno has informed him that the central bank wants to get involved in efforts to convince the Congress that lifting bank secrecy law is a crucial and indispensable part in the grant of amnesty to erring taxpayers.
The Philippines and Lebanon are the only countries in the world that still implement stringent bank secrecy laws.
Dominguez directed Finance Undersecretary Gil S. Beltran to ensure that the Congress is aware of the joint DOF-BSP position on the issue.
“Make sure that the general amnesty and the lifting of the bank secrecy — it has to be together,” Dominguez told Beltran during a recent DOF Executive Committee meeting.
Package 1B of the Duterte administration’s comprehensive tax reform program (CTRP) covers the proposed general tax amnesty along with the lifting of bank secrecy laws and the automatic exchange of tax information among regulatory agencies.
It also includes a proposal to adjust the Motor Vehicle Users’ Charge (MVUC).
Republic Act (RA) No. 11213 or the Tax Amnesty Act was signed into law by President Duterte last February, but he vetoed a provision granting amnesty to people who failed to pay the correct taxes in 2017 and earlier because it lacked a provision on the lifting of bank secrecy.
The provisions on the amnesty on delinquent estate tax taxes was retained in RA 11213.
President Duterte said a general tax amnesty without the lifting of bank secrecy laws would only lead to revenue losses for the government and encourage tax evasion.
Dominguez said the President “was constrained to veto the portion of the law covering the general amnesty because of the lack of provisions breaking the walls of bank secrecy, setting the framework for complying with international standards on exchange of information, and other safeguards against those who abuse by declaring untruthful assets or net worth.”