SALN filing for private citizens unconstitutional – lawmaker

MANILA, Philippines –  Cagayan de Oro City Rep. Rufus Rodriguez claimed yesterday that the new requirement of the Bureau of Internal Revenue (BIR) for high-income private taxpayers to file the equivalent of a statement of assets, liabilities and net worth (SALN) is unconstitutional.

“This new BIR requirement is against the people’s constitutional right to privacy. It’s state intrusion into the lives of private persons, which is a violation of the Constitution,” he said.

BIR is requiring all persons with an annual income of at least P500,000 to file the equivalent of a SALN starting on April 15.

Rodriguez said only public officials are required by the Constitution, the Anti-Graft Law and the Code of Conduct and Ethical Standards for Public Officials and Employees to declare their assets, liabilities and net worth.

“This is because public office is a public trust,” he said.

He said the BIR wants to make every taxpayer file an asset declaration apparently for taxation purposes.

“They cannot impose that requirement. It is only Congress that can, because the power of taxation belongs to the elected representatives of the people,” he said.

“And Congress will not do it precisely because it would be a transgression of the people’s right to privacy,” he stressed.

Rodriguez said he would file a resolution asking the House committee on ways and means to look into the new BIR regulation.

He would consider filing a case before the Supreme Court if the bureau does not withdraw such regulation.

Under the new rule, taxpayers are also required to declare interest income and prize winnings, including those from lotteries of the Philippine Charity and Sweepstakes Office (PCSO), which takes extra care in safeguarding the identities of winners for their security and safety.

Rodriguez said under present laws, interest income is levied a final tax of 20 percent.

“If it is a final tax, why should a retiree, for instance, who relies on interest income for his daily needs, be asked to declare his earnings which the government has already slapped a 20-percent tax? Imagine the inconvenience for such senior citizen?” he asked.

He said in the case of lotto winners, their winnings are tax-free under the law.

Malacañang supports the BIR’s plan for optional filing by high-income taxpayers of an Annual Information Return (AIR) this year.–-Jess Diaz (The Philippine Star) with Aurea Calica