Negros Oriental Rep. Herminio Teves made the statement in response to a PCCI’s move to oppose House Bill 2404, which seeks to revoke the legal provision on the confidentiality of the tax accounts of all individuals, corporations, partnerships and single-owner enterprises.
"We had expected the PCCI to take the moral high ground in the fight against tax cheats," said Teves, House ways and means committee senior vice chairman.
"No study is needed to prove that transparency is the best antidote against fraud. And conversely, that secrecy or confidentiality breeds corruption and cheating," he said.
"This is true everywhere. This is true in all transactions, whether in government or in the private sector," the congressman said.
"Once we become absolutely transparent in so far as tax records are concerned, we will discourage in a big way collusion in tax evasion and avoidance," Teves also said.
The PCCI had earlier said it is opposed to HB 2404, authored by Teves, because the measure would compromise the trade secrets of businesses.
"No study has been made or presented to support the view that the publication of tax records will encourage compliance," PCCI president Donald Dee told reporters.
The House ways and means committee had earlier endorsed the Teves bill for floor debate and approval.
Under the bill, the Bureau of Internal Revenue (BIR) is required to publish in book form an annual report of all taxpayer accounts. The report would contain such details as name of individual or enterprise, type of business, taxable income, gross sales or receipts, taxes paid by type of tax and presumptive input tax, among other details.
A previous PCCI survey showed that one out of four businessmen cheat on their tax payments. Among the reasons cited for poor tax compliance were the need to survive or compete, inadequate penalties, lack of awareness of tax regulations, failure to apprehend offenders and willful intent not to comply.
