By ERWIN ‘AMBO’ DELILAN
BUSINESSMEN, professionals and the media were shocked by reports that the Bureau of Internal Revenue (BIR) will close the entire Megaworld Corporation (MEG) properties at Bonifacio Global City (BCG) in Taguig City.
Such news came like a “tsunami” in the business community not just in Metro Manila but in the entire country.
Did mean tax deficiency on the part MEG?
I don’t think so.
But the company’s shares suffered an unwanted set back just after a day after the BIR issued an invite for a press conference / closure notice dated May 17.
Left with no choice, MEG’s owner, Dr. Andrew Tan, bought back some P50-million shares due to heavy foreign selling prompted by the aborted BIR closure order.
The tiff “worsened” when BIR – South NCR (National Capital Region) director Eduardo Pagulayan insisted regarding the alleged “disagreement” with MEG on certain tax jurisdiction. (Much) more when he disclosed that tax audits on MEG-BCG are going on.
Luckily, Finance secretary Carlos Dominguez III figuratively “put out the fire” by simply ordering the BIR Friday last week to stop the special audits.
So, everything stopped there.
‘GUESSING GAME’
Out of curiosity, the public continues to play a “guessing game” on the issue. Even the media (both national and local) can’t help but cast their “wildest imagination” on the issue. They’re itching to know the root cause of the mess.
The multi-billion dollar question: Is politics behind this MEG-BIR dispute?
Quite intriguing to explore!
Yes, because for 33 years (to be exact), MEG is soaring as one of the premier and highly respective estate developers in the country. In Metro Manila, MEG’s Eastwood City in Quezon City is a classy example. Festive Walk Mall in Iloilo City is also MEG’s signature lifestyle mall. In Bacolod City, MEG’s The Upper East (TUE) business complex is booming.
MEG’s owner, Dr. Andrew Tan, is no ordinary guy. According to Forbes Magazine, he is the 8th richest Filipino with $2.7 billion net worth (as of last year). His Alliance Global Holding (AGH) is known not just for real estate business or MEG, but also for food, beverages and gaming, the Forbes added.
Emperador, the world’s most selling brandy, is also owned by Dr. Tan.
So, it’s really unthinkable to judge MEG haphazardly out of BIR’s “short-lived” closure notice.
‘UNBELIEVERS’
On the other hand, majority of local businessmen in Bacolod and Negros remain “unbelievers” of the BIR issue.
I talked to some of them and they just said the burden proof lies on BIR to substantiate.
Besides, they argued that the issue on “disagreement” cannot be concluded yet as a form of tax liability on the part of MEG.
Things like this can (simply) be ironed out between MEG and BIR, and not through a press conference, they posited.
Also, one Bacolod businessman stressed, “I don’t think Dr. Tan will allow his name and his companies’ reputation to be besmirched by any unverified issue yet.”
FRIENDLIEST MEANS
Under Section 2 of the National Internal Revenue Code of 1997 (as Last Amended by Republic Act No. 10963), it says that BIR shall be under the supervision and control of the Department of Finance and its powers and duties shall comprehend the assessment and collection of all national internal revenue taxes, fees, and charges.
And the enforcement of all forfeitures, penalties, and fines connected therewith, including the execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts.
Likewise, the Bureau shall give effect to and administer the supervisory and police powers conferred to it by this Code or other laws.
However, Section 270 of the same edict also says that BIR personnel cannot divulge information collected from taxpayers concerning the latter’s business, income or estate, as well as the secrets, operation, style or work, or apparatus of any manufacturer or producer, or confidential information regarding the business of.
“Granting that MEG has tax deficiency,” local businessmen here maintained, “BIR must exhaust all friendliest means before jumping to a harshest move.”
BIR should not act like a “barumbado” (temperamental) against businesses, suggested by a Negros sugar planter.
WIN-WIN SOLUTION
Yes, the publication of any BIR move against any business – small or big – is of paramount importance for the public to know. It will somehow guide the taxpayers how the Bureau will treat their transactions and lead them to an intellectual interpretation of the current tax laws and regulations.
Too, it’ll provide taxpayers the right information how the BIR applies “teeth” on certain tax rules.
Moreover, the publication per se is aimed at eliminating graft and corruption at the BIR, which is also in consonance with that of President Duterte’s Executive Order No. 2 (dated July 23, 2016). Nice guide!
But in the case of MEG, there’s no publication yet. BIR sending invites to the media for a presscon simultaneous with the closure order against MEG-BCG can be interpreted as an abrupt attempt. Thus, it tremendously “rocked” the business hamlet in the country.
Could it be considered a form of harassment against MEG? Hope not!
I still have trust on BIR that it could perform its duties and responsibilities within the tenets and moral bounds of the laws. After all, there’s nothing to lose if it’ll be “nicest” to the country’s businesses without losing its “fangs”.
The fact that MEG already vowed to cooperate with any tax audit is, perhaps, an indication leading to a win-win solution.
In an official statement, MEG said, “The Company continues to maintain its stance of full cooperation with the tax authorities in accordance with their mandate to collect badly needed revenues for the Government.”
Deciphering such, I can say, it means a lot for the government and the Filipinos who continue to trust on the integrity and credibility of Dr. Tan and his MEG.
In sum, a mega understanding is badly needed leading to a mega determination of possible solution(s) on the current row./PN
