SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES ;
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 3330

EXPLANATORY NOTE

This bill seeks to require the Secretary of Finance to cause the publication of
the names of the top five hundred (500) individual taxpayers and their respective
income tax returns in order to promote transparency in their business transactions
and obligations with the government

Tax is the enforced proportional contribution from persons and property levied
by the State by virtue of its sovereignty for the support of government and for public
needs. Taxes are important because they are the lifeblood of the government and so
should be collected without unnecessary hindrance. The legislature in adopting
measures in our tax laws only wants to be assured that taxes are paid and collected
without delay. Taxes are the lifeblood of the government and their prompt and
certain availability is an imperious need. (Commissioner v. Pineda, 21 SCRA 105,
September 15, 1967)

Recent study shows that the Philippines loses over P85 billion ($1.53 Billion)
each year to income tax evasion. Most conspicuous is the pervasive practice of
businessmen and professionals of not deciaring or reducing their income derived
from their business or from the practice of their profession. Tens of thousands of the
country’s richest citizens are paying little or no income tax, helping to erode the
government's finances and promoting a culture of cheating. This group comprises
the top five percent (5%) economic basket who earn money through businesses,
profession or are self-employed

This large scale tax fraud is further intensified by the facilitation of some
corrupt officials of the Bureau of Intemal Revenue (BIR) who eam millions of pesos
from fraudulent tax practices. Thus, these tax evaders and corrupt BIR officials and
‘employees contribute to the deterioration in the performance of the BIR.

It is in response to the persistent reports of tax evasion and graft and
corruption that this bill is proposed. By requiring the publication of the names of the
top individual taxpayers and their respective income tax retums the public is provided
with relevant data to compare and project the income of businessmen and
professionals and to know whether they paid the correct taxes to the government.
This will encourage rich businessmen and professionals to pay the correct amount of
taxes and publishing their names as top taxpayers will give due recognition for their
patriotism in contributing significantly to the revenue collection as well as in
Supporting the government's fiscal reforms and revenue generating measures.

In view of the fiscal adequacy, transparency and efficient internal revenue
administration, immediate approval of this bill is highly recommended.



SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriquez, Jr.

House Bill No. 83830

AN ACT
MANDATING THE PUBLICATION OF THE TOP FIVE HUNDRED TAXPAYERS
AND THEIR RESPECTIVE INCOME TAX RETURNS

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Any provision of law to the contrary notwithstanding, the
Secretary of Finance, through the Commissioner of Internal Revenue, is hereby
mandated to cause the publication of the top five hundred (500) individual taxpayers
and their respective income tax retum (ITR) within ninety (90) days from the last day
of filing the income tax return each year covering the preceding taxable year.

SEC. 2. The Secretary of Finance, in coordination with the Commissioner of
Internal Revenue shall promulgate the rules and regulations as may be necessary for
the effective implementation of this Act.

SEC. 3. The amount necessary for the implementation of this Act shall be
charged to the appropriations of the Department of Finance under the current
General Appropriations Act. Thereafter, such sum as may be needed for its
continued implementation shall be included in the annual General Appropriations Act

SEC. 4. This Act shall take effect fifteen (15) days after its publication in at
least two (2) national newspapers of general circulation.

Approved,