Philippine tycoons not on top taxpayers list coming forward

Manila (Philippine Daily Inquirer/ANN) - A day after it was reported that members of the Lopez family-a wealthy dynasty of business owners-were excluded from the Philippines' Bureau of Internal Revenue's (BIR) top 500 individual taxpayers list, a taipan has come forward to show that he, too, had paid a large amount of taxes to the government.

Both incidents mark what could be the beginning of a trend where the country's wealthiest businessmen-once eager to stay below the taxman's radar-are now eager to be seen as having contributed generously to the state's coffers.

Like many of his wealthy peers, businessman Andrew Tan did not find his name on the Bureau of Internal Revenue's (BIR) top 500 individual taxpayers' list, but his tax payments were enough to catapult him over showbiz personality Kris Aquino, who is No. 1 on the roster.

Data from the tycoon's office showed that the founder of the Megaworld Corp. real estate empire, who was one of the Filipino billionaires named by Forbes magazine, paid 60.1 million pesos (US$1.4 million) in taxes for all his sources of income for 2011.

Kris, the youngest sister of President Aquino, paid 49.8 million pesos in taxes due, to a large degree, to her earnings from commercial product endorsements.

Tan was the third businessman who sent word to the Inquirer that he should have been on the BIR list of the country's top taxpayers.

Sources within the Lopez group of companies on Tuesday pointed out that family patriarch Oscar Lopez and his brother Manuel had paid 37 million pesos and 11 million pesos in taxes, respectively, for 2011.

"In the last few hours, our office has been receiving inquiries about the taxes that our chairman and CEO ... has paid to the BIR," said Megaworld chief financial officer Francis Canuto in a letter to the Inquirer Wednesday, which came with documents showing Tan's tax payments.

"There has been a lot of interest generated in the last few days about the payment of individual income taxes," Canuto added. "This is a very positive development for the country because such an interest is creating awareness on our obligation as Filipino citizens to pay taxes and do our part in feuelling economic growth."

Tax on dividends

In 2011, Tan-who also chairs conglomerate Alliance Global Inc.-earned 518.1 million pesos in cash dividends from his stock holdings. On this income, he paid 51.8 million pesos in taxes, representing a 10-per cent final withholding tax that is, in practice, excluded from one's income tax return filing.

During the period, Tan also earned 22.2 million pesos in salaries from the companies he owns and worked in, for which he paid 7 million pesos in income taxes-an effective tax rate of 31.5 per cent.

Finally, the tycoon earned 3.8 million pesos in director's and consultant's fees, resulting in additional tax payments of 1.2 million pesos.

His total income for 2011 from all three sources amounted to 544.2 million pesos, compared with his combined tax levies of 60.1 million pesos for the period.

Revenue Commissioner Kim Henares explained why certain people were not on the list of top taxpayers.

"Only those who filed income tax returns (ITRs) will find themselves on the top 500 list," the BIR chief said on Tuesday.

"If you did not file an ITR-if you had a 'substituted filing' where your company withheld income taxes for you and remitted it straight to the BIR, just like regular employees-it doesn't matter how big your salary and tax payments are. You will not appear on the list," she added.

The annual list of billionaires released by Forbes magazine shows that Tan is the Philippines' fourth-richest man for 2012, with an estimated asset base of $3.95 billion.

"Dr. Tan is very supportive of the continuous efforts of the BIR in putting good governance in place," Canuto said. "He also believes that through the leadership of Revenue Commissioner Henares, tax collections will improve, and taxpayer compliance and satisfaction will increase."

*US$1=41.2 pesos

Related slideshow: Celebrity taxpayers

490. Joseph Ejercito Estrada, P3.51 million. Former action star and ousted President Joseph Ejercito 'Erap' Estrada is now running for Manila Mayor against incumbent Alfredo Lim. He has previously ... more 
490. Joseph Ejercito Estrada, P3.51 million. Former action star and ousted President Joseph Ejercito 'Erap' Estrada is now running for Manila Mayor against incumbent Alfredo Lim. He has previously been convicted of perjury, but has been granted pardon by former President Arroyo. (AFP photo) less 
1 / 15
AFP News | Photo By Noel Celis
Sun, Mar 31, 2013 7:44 PM PHT
Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • PSEi breaches 8,000 level, but profit-taking pared most gains

    [caption id="attachment_257092" align="alignleft" width="150"] PSEi breaches 8,000 mark (PSE photo)[/caption] Local share prices surged on a slew of positive news from abroad, sending the Philippine Stock Exchange index past the 8,000 mark for the first time in history. BDO Unibank chief market strategist Jonathan Ravelas said the market rose due to “positive foreign equity portfolio flows and Fed Chair Yellen’s comments last week reiterating thethat the FOMC will be data dependent and …

  • Abandoned, hard-up husband hits P60-M Lotto pot

    Lady luck finally smiled on a hard-up tricycle driver, who endured being abandoned by his wife and seeing his children drop out of school before hitting the Philippine Charity Sweepstakes Office (PCSO) 6/45 Lotto jackpot worth nearly P60 million. PCSO acting chairman Jose Ferdinand M. Rojas II said the 29-year old lucky bettor hit the jackpot in the March 20 draw by correctly picking the winning numbers 02-03-14-22-29-30, which corresponds to the birth anniversary dates of his family members. …

  • News In Brief

    P/$ RATE CLOSES AT P44.80/$1The peso exchange rate closed  lower  at P44.80  to the US dollar yesterday at the Philippine Dealing & Exchange Corp. (PDEx) from P44.76  last  Friday.  The weighted average rate  unchanged  to  P44.796  from  P44.796.  Total volume amounted to $340.6 million.PUMP PRICES RAISED THIS WEEKThe pump prices of gasoline products will be raised by P1.10 per liter this week and diesel by P0.60 per liter, according to the oil companies. In an advisory to the media, the oil …

  • Need for modern national sports complex underscored

    Sen. Juan Edgardo “Sonny” Angara yesterday pushed for the construction of a “state-of-the-art” and “highly scientific sports complex” that can be used by the country’s national athletes for high-level training and total wellness program. Angara, chairperson of the Senate Committee on Games, Amusement and Sports, said the government should at least provide decent support to its athletes by providing them with ultramodern sports venues and facilities if it wants them to improve the country’s …

  • Makati mayor slams PNP’s role in mayoralty row

    Makati Mayor Jejomar Erwin S. Binay denounced what he called apparent “misuse” of the Philippine National Police (PNP) force in the implementation of “selective suspension” of government officials not allied with the ruling party. Binay said he sympathizes with PNP personnel who often got caught in the middle of political conflicts, and called for an end to dirty political tactics. [caption id="attachment_257243" align="aligncenter" width="648"] THANKSGIVING MEAL – Vice President Jejomar C. …

  • EVAP warns of unscrupulous foreign electric vehicle suppliers

    The Electric Vehicle Association of the Philippines  (EVAP) has cautioned local manufacturers and end users against unscrupulous foreign EV suppliers that are flocking into the domestic market. In a sunrise industry like the electric vehicle industry, EVAP stressed that choosing the right partner or supplier is a difficult task. “In the absence of any track record to review, an end user is at a loss as to how to choose a reliable and competent supplier,” said Atty. Bodie Pulido, EVAP …

  • Mayors laud bill increasing tax revenue allocation for LGUs

    The League of Municipalities of the Philippines (LMP) is backing the proposed increase in the annual automatic allocations for local government units (LGUs) to boost inclusive growth with improved infrastructure, modernized agriculture and easier access to resources. Mayor Jess Burahan, secretary-general of the LMP said the empowerment of LGUs through added resources is a game changer in boosting inclusive growth. …

  • Freeze order against Jinggoy assets final; Bong guards face raps

    The Sandiganbayan Fifth Division has turned down with finality the plea of Senator Jinggoy Ejercito Estrada to lift the freeze order on his properties amounting to more than P183 million. In a resolution released yesterday, the Fifth Division denied Estrada’s motion for reconsideration that sought that the court lift its writ of preliminary attachment/garnishment that was issued on February 17 that ordered the freeze of his properties. “As movant has not filed a counterbond and his arguments …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options