FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

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

1722

House Bill No.

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 declaring 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 Internal 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 returns 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.

Vi

RUFUS B. IGUEZ

OZ,

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH 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._ 1722

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 return (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,