INTERNAL Revenue Commissioner Kim Jacinto-Henares agreed yesterday to withdraw her controversial circular requiring taxpayers to file an Annual Information Return (AIR). Revenue Regulation 02-2011 requires the filing of the AIR by taxpayers with annual taxable income of not less than P500,000.
At yesterday’s hearing of the House ways and means committee, Henares said she will also immediately recommend to Finance Secretary Cesar Purisima the revocation of the circular, which was described by members of the House Committee on Ways and Means as unconstitutional and unlawful.
“We will recommend to Secretary Purisima that the regulation be withdrawn,” Henares told legislators.” She also told the panel that issuance was not meant to impose any new taxes, and that the bureau recognized that the taxing power belongs to Congress.
“We took pains explaining [to Henares] the fundamental constitutional, legal, technical and procedural problems caused by her revenue regulation…We are happy that she listened to [our] reasons,” said Rep. Teodoro Casiño (Bayan Muna) said after the hearing.
The panel conducted a hearing on the AIR on the basis of the March 9, 2011, letter of Valenzuela City Rep. Magtanggol Gunigundo (Kampi-CMD) requesting the appearance of Henares to explain the rationale and objective of the Bureau of Internal Revenue order that took effect on March 1.
Gunigundo said the BIR should focus its efforts on power, mining, telecommunications, auto manufacturing, among other big-ticket sectors, as it appears the bureau was taking a different direction with this latest revenue regulation.
Besides the letter of Gunigundo, Cagayan de Oro Rep. Rufus Rodriguez (Puwersa ng Masang Pilipino) and his brother Rep. Maximo Rodriguez Jr. (Abante Mindanao), filed House Resolution 1609 urging the panel to look into the BIR order because the provisions of RR 02-2011 may already be considered an encroachment to the right to privacy of individuals, a right which is protected also by the 1987 Constitution.
They said the House should look into this revenue order to protect the people from an unwarranted intrusion by the government into their private and personal lives.
Legislators thanked Henares for her promise to immediately recommend to Purisima the withdrawal of the order.
