THE Office of the Solicitor General (OSG) on Wednesday asked the Supreme Court (SC) to lift the temporary restraining order (TRO) stopping the Bureau of Internal Revenue (BIR) from compelling the banks and related businesses to submit a so-called alphalist of recipients of income payments subject to creditable final and withholding tax.
In its comment to the petition filed by bankers, brokers and other business groups, Solicitor General Florin Hilbay also sought the immediate dismissal of the petition for lack of merit.
Hilbay warned the Philippine economy stands to suffer if the TRO was not immediately lifted. He said the TRO will affect the country’s standing in the upcoming Asean financial integration, particularly as to the country’s ability to obtain information necessary for consultation and exchange of information among members of the International Organization of Securities Commission, as well as ensuring compliance and enforcement of securities and derivatives laws and regulations.
“The irreparable damage, hence, is not to the petitioners, but to the Philippine government,” the OSG said. “The repercussions of the issuance of the TRO are far-reaching and are of such magnitude as to affect not only the domestic economic condition but, far more important, the economic viability and competitiveness of the country in the global market, or at the very least in the forthcoming Asean Integration,” it added.
On September 9 the Court granted the petition of the Philippine Stock Exchange Inc., Bankers Association of the Philippines, Philippine Association of Securities Brokers and Dealers Inc., Fund Management Association of the Philippines, Trust Officers Association of the Philippines and Marmon Holdings Inc., for the issuance of a TRO stopping the implementation of BIR Regulation 01-14 and Revenue Memorandum Circular 05-14, as well as SEC Memorandum Circular 10, Series of 2014.
Joel San Juan