Governance

Why the taxman cometh after Mikey Arroyo

Rising fortunes, falling taxes

Anyone who has earned more, acquired more, sold more, and inherited more should have paid the lawful and correct amounts of taxes that the government, by its sovereign right and duty, levies on any number of so-called “tax incidents” or taxable transactions on all citizens.

And anyone – not least of them lawmakers who had sworn to uphold and enforce the laws – who fails to file tax returns, with the correct amounts and within deadline, is certain to send the Bureau of Internal Revenue (BIR) on an investigation into exactly what that individual has reported, or not reported.

Sidebar

The finances of Mikey & Angela Arroyo

UNLIKE the security guards he is supposed to represent, Rep. Juan Miguel ‘Mikey’ Arroyo of Ang Galing Pinoy is one of the wealthiest members of the 15th Congress. His fortune flourished during the same years of his mother’s presidency – from P5.72 million in 2001 to P101.35 million in 2009.

The net-worth method vs the Arroyos

How to track, crack tax cases

HE WAS one of the biggest guns in the Chicago crime scene, but for the longest time U.S. mobster Alfonse ‘Scarface’ Capone was practically untouchable by the authorities. And when he was finally sent to the slammer, the offense he was found guilty of committing had nothing to do with murder or mulcting money.

In the end, it took the U.S. Treasury Department to nail Capone, and it did so through a simple audit of his fabulous expenditures that led to the filing of tax evasion charges against him, his brother Ralph ‘Bottles’ Capone, Jake ‘Greasy Thumb’ Guzik, Frank Nitti, and other mobsters.

Sidebar

More barriers to access

THE PUBLIC expectations are clear and well-founded. Malacañang under President Benigno Simeon Aquino III will uphold transparency in the conduct of its affairs. And perhaps, too, in the disclosure of documents imbued with public interest, not least of them the Statement of Assets, Liabilities, and Net Worth (SALN) of public officials.

Merci’s SALNs a big secret?

Ombudsman mocks law
on disclosure of wealth

THEY are supposed to be the exemplars when it comes to compliance with the law requiring all civil servants to declare and disclose the full details of their assets, liabilities and net worth.

After all, the Office of the Ombudsman is vastly empowered by the Constitution to serve as the premier integrity and anti-graft agency of the land.

But only token compliance to absolute indifference to the law on the filing and disclosure of their Statement of Assets, Liabilities, and Net Worth (SALN) seems to be the attitude and conduct common to Ombudsman Ma. Merceditas N. Gutierrez and her 11 deputy and assistant Ombudsmen.

‘Blackmail’ raps spook impeach plaint

Gutierrez has sued only 4
members of 15th Congress

TOMORROW, March 16, the 283-member House of Representatives plans to vote in plenary on the impeachment complaint against Ombudsman Ma. Merceditas N. Gutierrez. At least 95 votes are needed for the complaint to move to the Senate, which alone under the law may sit as the impeachment tribunal to try Gutierrez for several counts of alleged betrayal of the public trust.

Yet other than the vote, the effort to impeach Gutierrez – the third attempt in as many years by the House and the only one to move past its Committee on Justice – has unfolded with two discussion tracks as backdrop. The first is an exchange of allegations of blackmail between Gutierrez’s camp and the lawmakers. The second is a vigorous campaign being mounted by both sides to court public opinion against each other.

Out of the barracks and into the pits

Corruption talks trigger
worry, debates in AFP

IF MONEY is the root of all evil, particularly in the corruption-tainted Armed Forces of the Philippines (AFP), then perhaps the government might do well to deny soldiers access to cold cash.

At the same time, however, it must make sure that the logistics and supplies get to the battlefield in the right quantity at the right time.

Or perhaps the government might require that all military contracts for goods and services be covered by a strictly enforced electronic procurement system.

As well, if the logistics system is good and efficient, the government might ban the conversion of funds and congressional insertions in the AFP’s budget altogether.

Sidebar

Boots on the ground

NORTH COTABATO – While senators and generals in Manila were bickering over who got more millions in pabaon among outgoing chiefs of staff of the Armed Forces, Sergeant Rolly was wondering why his meager salary had thinned some more.

And then his pay check showed that General Headquarters (GHQ) had made deductions for several loans that he never took out.

Sergeant Rolly is just one of more than 100,000 soldiers who have kept their ears cocked to the ongoing Senate investigation into the staggering amounts that some generals have allegedly stashed away in bank accounts and prime real estate here and abroad.

Out of the barracks and into the pits

Petty, big, routine graft
a lucrative trade at AFP

EIGHT YEARS ago in 2003, the PCIJ had exposed how the soldiers themselves were arming the enemy, by selling bullets and guns at fat discounts to rebels. To make matters worse, the transactions transpired at the very heart of the Armed Forces of the Philippines (AFP) command: the General Headquarters at Camp Aguinaldo.

That early, a New People’s Army (NPA) cadre code-named Ricky visited Aguinaldo on and off to purchase wares of war from soldiers. The bullets went for P5 a pop, even though the government at the time spent P14 to make or purchase each one.

The sale of guns and bullets by some soldiers to rebel groups and warlords is an old cottage industry, according to contacts from the NPA and the Moro Islamic Liberation Front (MILF). Then and now, government arsenals have become a dipping pond for rebel groups, thanks to soldiers given to making quick money.

Sidebar

A politicized military

IN A way, Gloria Macapagal Arroyo’s Cabinet toward the end of her regime could be described as “star-studded.” Arroyo, after all, had a habit of appointing retired star-rank generals to key positions in her official family.

Former Armed Forces of the Philippines AFP) vice chief of staff Eduardo Ermita served as executive secretary. Angelo Reyes and Hermogenes Esperon Jr., both former AFP chiefs of staff, handled several portfolios, while former Philippine National Police director generals Leandro Mendoza and Hermogenes Ebdane were appointed transportation secretary and public works secretary, respectively.

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