WE TRUST that acting Bureau of Internal Revenue Commissioner Joel-Tan Torres will live up to the standards set by his predecessors?Sixto Esquivias IV and Lilian Hefti, two good public servants, with their excess of candor and deficiency in collection (the latter, arguably, for causes not of their own making and beyond their control).
The last paragraph of Sec. 13 of Republic Act 7166, says: ?Any provision of law to the contrary notwithstanding any contribution in cash or in kind to any candidate or political party or coalition of parties for campaign purposes, duly reported to the Commission shall not be subject to the payment of any gift tax.? It became law in 1991, when I was in the Senate. There were those of us who nearly fell off our seats when some of our 1987 donors were assessed taxes by the BIR. I recall that early one day I went to the BIR in remonstrance, because we could not tell our donors to cough up further. It had not been done before, to our knowledge. ?Dura lex, sed lex, Sen. Rene,? gently said the respected commissioner then, in effect.
I did not spend a single centavo of my own in 1987. I had donors all over the land, not all of whom I even met. A donor gave me seed money as we had nothing really. After I won, we returned it intact. We did not need the P1 million. But, from what I read, even that would have been taxed, as a loan, advance, whatever.
I could not believe that an investment in political expression, through elections, and voting for a platform a candidate represents, would be taxable. The free speech clause would seem to argue against it, for one thing. The gift is an investment in the political process, in democracy, a hallowed institutional arrangement. Holmes said we can express our opinion in law, and sweep away all opposition. Thus, RA 7166, during our watch.
When you support a candidate, you support what he stands for. The new BIR chief?s policy, at war seemingly with our legislative intent, would have a tremendous chilling effect on opposition supporters and, to that extent, weaken democracy which is committed to leveling the playing field. Were I in a modest business and would like to donate to a bet, I see where I would have to register with a withholding agent. Were I in a big business, I might donate only to the side which can harass me.
What Commissioner Torres reportedly wants to do could not have been the legislative intent. I hope to have edification on just what law he bases his widely publicized program to collect campaign taxes?with unaffordable chilling effect on investments in improving our leadership that will give our people a better life.
?R.A.V. SAGUISAG,
chair, Movement of Attorneys for
Brotherhood, Integrity and Nationalism Inc.
(Mabini), Makati City