BIR wants claim over Jose Velarde account

Written by Writer on Friday, October 17th, 2008

BIR wants claim over ‘Jose Velarde’ account

THE Bureau of Internal Revenue (BIR) asked the Sandiganbayan to change its earlier ruling on the P189-million Jose Velarde Account of former President Joseph Estrada.

In a 22-page motion for reconsideration, the bureau prayed before the court to vacate its September 24 ruling and issue a new one awarding the bank account to them as payment for Estrada’s unpaid taxes.

In its September 24 ruling, the Sandiganbayan Special Division ordered the forfeiture of the P189-million Jose Velarde account, claiming the bank account is one of the fruits of the crimes Estrada committed while he was still president. It was the Sandiganbayan that convicted Estrada of plunder.

However, the bureau argued that the power of the government to collect taxes takes precedence over any forfeiture case.

“The power of taxation is plenary or absolute in its application. It is a power that has existed since the creation of the State and will continue to do so until the wielder thereof is abandoned to the cold embrace of decay,” the bureau’s pleading stated.

The bureau pointed out that the bribes and kickbacks which were deposited to the Jose Velarde account is subject to taxation as provided under the 1987 National Internal Revenue Code.

“Income from kickbacks and similar payments is treated as though it were ordinary income tax, once its existence is brought to light . . . Such being the case, it is only natural that income generated from the Jose Velarde Account should first be subjected to taxation before forfeiture can take place,” it was pointed out.

The bureau asked the Sandiganbayan to consider the bureau’s findings that Estrada is liable for unpaid taxes and that the former president must settle that obligation to the government.

The bureau recently ruled that Estrada and his wife, former Sen. Luisa Ejercito, have a tax liability of more than P2.9 billion representing tax deficiencies for the taxable year 1999.

The Manila Times