First, medical doctors became furious when the Bureau of Internal Revenue’s shame campaign hit the road with the first of a series of advertisements- the print ad, published in the Philippine Inquirer showed a doctor piggybacking on a teacher who presumably earns a lower salary than her but pays higher taxes to the BIR.
To the rescue came an association of public school teachers which collectively tagged as ‘unfair’ the style of the advertisement identifying doctors as tax cheats. Voicing out its perception, Teacher’s Dignity Coalition chairman Benjo Basas said it is unfair to doctors to be collectively called ‘tax cheats’. BIR’s low tax collection might also reflect on the tax agency’s inefficiency in performing its collection duties. The 40,000 strong teacher’s group asked the BIR to discontinue causing the publication of such derogatory advertisement.
If you wander what the story behind the background of this ad that drew indignant comments from a number of sectors in Philippine society is, please read on…
The Bureau of Internal Revenue is tasked to collect for this year Php1.456 trillion in taxes, a target which is 20% higher than its 2013 collection. To realize this, the BIR launched a number of activities which the tax collection agency hoped to encourage taxpayers to shell out the right taxes. Foremost of these is a public awareness campaign to inform and move the Filipino taxpayer to file and pay his income tax returns. The media activities are part of the Revenue Administration Reform Program, an initiative that is one of a number of such funded by a $434 million grant from the United States government.
But a group within the campaign’s target audience, the professionals, particularly self- employed lawyers and doctors are strongly objecting on the style of the latest BIR campaign.
Some months back, BIR Chief Kim Henares announced that the agency will soon be issuing a circular that will require doctors, lawyers and other professionals to display their fees prominently within their clinics or offices. The Integrated Bar of the Philippines says giving in to this instruction would be against IBP’s rules against self- promotion. Also voicing its concern on the subject, is the Philippine Medical Association which observed that such display would make medical clinics look like restaurants where menus are displayed on walls. The PMA added that such display will not insure that the right taxes will be paid to the BIR. Both the PMA and IBP suggested more discussions on the subject and include representatives of the subject taxpayers such as the PMA and the IBP.
Now comes stronger objections when a half- page ad appeared in a national broadsheet last Sunday. The ad showed a woman doctor riding piggyback on a female teacher who is standing and in the act of discussing school lessons with her students in the classroom. The caption read ‘When you do not pay the right taxes, you become a burden to those who do.’
The Philippine Medical Association cried foul because it saw the female doctor being portrayed as a tax cheater. PMA Pres. Leo Olarte said the graphic accusation was unfair. He added that the sweeping accusations made by the BIR impacted on the whole medical profession and hurt those who were paying the correct taxes. Olarte said not all medical practitioners are rich because of income derived from their profession/ Many still earn salaries of as low as Php15,000. a month. Many also accept charity cases that earn for them no income at all.
A cool and unflustered BIR Chief admonished the doctors not to take the ad personally. For one thing, the data shown in the ad were part of documents (through their income tax returns) submitted by both featured taxpayers. The doctor’s income tax return statement said that she earned Php1,075.080. 52 and paid Php 7,424 in taxes to the BIR while the teacher had salary earnings that amounted to Php 852, 169.48 for which she shelled out Php 221,694.23 in taxes.She added that doctors were the most complained about for not issuing receipts to clients who seek them for medical consultations, check- ups and medical procedures. Henares added that the agency had no intention of making sweeping statements about doctors as taxpayers. Henares further revealed that of the 1.7 million professionals registered with the Professional Regulation Commission, only about 400,000 are registered as taxpayers with the BIR. Henares said BIR had no wish to insult the professionals’ sector of taxpayers. Instead she said, BIR is appealing to them to them through the newspaper advertisement. ‘Do your share, knowyourtaxes.ph’ was the main message of the BIR ad.
No let up in its campaign, the BIR averages the filing of one every 2 weeks of tax evasion case with the Department of Justice. Sampled was the people’s icon Manny Pacquiao, who, after strong protestations, finally relented to talking with the agency to come up with an agreement and pay up. A well- known doctor in Cebu is also at present a respondent in a tax evasion case. He is Dr. Potenciano Larrazabal III founder and CEO of the Larrazabal Eye Group and he is accused of tax evasion to the tune of Php 21.14 million tax deficiency…
To continue, one member of the Senate whose mother is a doctor also voiced out her concern and is even mulling the idea of a Senate inquiry on the BIR’s ‘shame campaign.’
Neophyte Senator Nancy Binay has joined others who called on the BIR to desist from further publication of the ad till a thorough study has been made on the veracity of the BIR statement that doctors cheat on their tax payments. The request for the suspension of dissemination through the media of the controversial ad includes those that are supposedly in the line- up of ads for future publication scheduling featuring lawyers, and other self- employed professionals. Binay added that she herself is not in favour of a shame campaign to encourage tax payment from the public.
While many are disgusted at the fangs that the BIR is showing against professionals’ tax payments, the ordinary Pinoy seems glad that at last, the tax collection agency is targeting the ones who have, till this time, been getting away with the payment of very low and incorrect taxes. The regular salaried- Pinoy, much as he would want to do a little cheating on his income tax return statement perhaps, may find it difficult to do so as payment for his taxes are already deducted by his employer.
I am of the belief that we all would be law- abiding with tax payment if and when we could see with our own eyes that these are being spent wisely by our government. Can we avail of good medical services from our government hospitals, will our children have good education in a public school, are there enough social services for our people, do we enjoy travelling on roads and highways that are safe…these are some questions that when answered YES will make the taxpayer part with his tax money more readily and with cool.
Oh yes, and not to forget, a corruption- free tax agency where taxmen allow tax- cheating for a fee. Hmm, I wonder if BIR did a concept about this, too. It is, I think an apt one, an additional part of the BIR financed and produced media series.
THANK YOU, TORONTO!
