www.tmap.org.ph
September 2014
TMAP MONITOR From Million People March to Million People Initiative
The BOD poses with the guest speaker after the GMM
Guest Speaker Ms. Inday Espina-Varona of ScrapPorkNetwork
“There is no reason for the poor people to be deprived of government services just because there is no pork barrel,” Ms. Inday EspinaVarona emphasized before the TMAP members during the GMM last 27 August 2014. Ms Espina-Varona is with Change.org Philippines and a member of ScrapPorkNetwork.
system through people’s initiative. The campaign aimed at securing "at least ten per centum of the total number of the registered voters, of which every legislative district is represented by at least three per centum of the registered voters thereof" was officially started on 23 August 2014.
ScrapPorkNetwork is one of the groups leading the move for the abolition of the pork barrel
Ms.
Espina-Varona
explained
that
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Senate Public Hearing TMAP has been actively campaigning for the lowering of the income tax rates and improving our tax laws and regulations. Pursuant to TMAP’s advocacies, President Rina Manuel attended on 28 August 2014 and 22 September 2014 the Senate Ways & Means Committee public hearings on the tax-exemption of 13th month pay, bonuses Continue on page 3
TMAP Legislative Committee member Atty. Virginia Viray, TMAP President Rina Manuel, Sen. Sonny Angara and TMAP Treasurer Malou Lim
the
www.tmap.org.ph
September 2014
TMAP in the news
TMAP Treasurer Atty. Malou Lim guested on 30 August 2014 on the DZMM 630KHZ Konsyumer ATBP program, hosted by Alvin Elchico and DTI-Consumer Protection Group “Usec. Vic" Dimagiba, with and BIR HREA Atty. Marissa O. Cabreros as co-guest.
President Rina Manuel attended on 18 Sep 2014 COURAGE and JUDEA’s Public Forum on Taxes and Salaries
TMAP President Rina Reyes Manuel at ANC's "Inside Business" hosted by Warren de Guzman.
ABS CBN interview President Rina on the income tax changes
Senate hearing from page 1
and other benefits, plus other tax reduction measures. While all these measures are most welcome to alleviate the plight of individual taxpayers, TMAP recommended prioritizing the adjustment of tax brackets and the lowering of tax rates since this will provide the greatest impact. TMAP pointed out that the Filipino workers are among the most taxed in the ASEAN Region with the 32% tax being levied for any taxable income above PhP500,000.
The adjustment of the tax-exempt 13th month pay and other benefits based on inflation is something that is already provided for under the Tax Code, which the DOF/BIR has NOT acted on for the past 20 years. "Any adjustment of the income tax brackets would already be big help in terms of the individuals because an adjustment in the amount, for example in the 13th month pay, income tax base, the other benefits would actually be helpful to all the individuals," shared Tax Management Association of the Philippines President Rina Reyes Manuel.
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www.tmap.org.ph
September 2014
Punongbayan & Araullo added another representative to TMAP. He is
Atty. Olivier D. Aznar Vier started his career in P&A as a junior auditor and later on transferred to the Tax Division. In July 1, 2014, he was admitted as a tax partner of the Firm. He graduated Cum Laude in college and placed No. 16 in the October 1999 CPA Board. He is a regular contributor to P&A’s newspaper column, “Let’s Talk Tax” and has written articles on taxation of liquidating dividends, impairment loss on investments and tax arbitrage on interest, to name a few. TMAP advocates 3Rs for income tax changes On 10 September 2014, TMAP submitted its position paper to the Ways and Means Committees of both the Senate and the House. The paper advocated the 3R priority framework to ensure the passage of muchneeded tax reform laws. These are (1) RECTIFY the tax base, (2) REDUCE the tax rates, and (3) REFORM the Tax Code. 1) RECTIFY the Tax Base There is an immediate need to update the tax base under the PIT system due to inflation. The outdated tax base and tax-exemption thresholds undoubtedly decrease the net home pay of Filipino taxpayers, most significantly those of low-income taxpayers, thereby depriving them of decent living standards. As such, TMAP supports the following tax proposals: (a) Increase the tax-exempt 13th month pay, bonuses and other benefits from P30,000 to P70,000 (b) Immediately enact a law to update income tax brackets and provide for automatic indexation mechanism 2) REDUCE the Tax Rates The Philippines has effectively the highest personal
income taxes imposed in the ASEAN region. Aside from this, inequity exists with corporations are taxed at 30% while individuals are taxed at 32%. 3) REFORM the Tax Code TMAP advocates a simplified and more equitable tax system that will help broaden the tax base, improve compliance and, consequently, increase tax collections. In particular, the PIT system self-employed individuals and professionals and marginal income earners needs to be reviewed and simplified in order to facilitate greater equity and ease the burden of compliance: We trust that our recommendations above – that is, to RECTIFY the Tax Base, REDUCE the Tax Rates, and REFORM the Tax System, or the 3Rs, will merit your utmost consideration. TMAP also committed to submit supplemental position papers at a later date after it conducts a more detailed review of the PIT system, and the Philippine tax system, as a whole, with the objective of promoting a simplified and more equitable tax regime.
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www.tmap.org.ph People’s Initiative from page 1
National Budget is a reflection of the government’s priorities. It should be a real image of the people’s need and the State’s response to those needs. The peoples’ initiative campaign aims to bring back integrity to the budget system. It has submitted a petition proposing to enact a national legislation entitled “An Act Abolishing the Pork Barrel System.” The proposed law abolishes the presidential and congressional pork barrel, mandates line item budgeting, prohibits and criminalizes appropriation and use of lump sum discretionary funds, penalizes violators with six years and one day to ten years imprisonment and disqualification from holding public office. The penalties provided shall be in addition to the criminal, civil and administrative liabilities that the national official or private The Tax
Management Association of the Philippines, Inc. is a non-stock corporation founded on October 22, 1981 established primarily to professionalize tax practice and provide a channel by which the private sector may actively participate in the drafting of tax laws, rules and regulations. At present, TMAP has over 100 members most of whom belong to, or act as consultants for, the top 1,000 corporations. The Association has been instrumental in the development and promotion of reforms in the country’s tax laws and in tax administration by actively participating in public hearings and submitting position papers in connection with the passage of revenue laws, rules and regulations. TMAP raises the level of professionalism and technical competence among its members by keeping them abreast of the latest tax
September 2014 individual may incur under existing laws. Ms. Espina-Varona assured the audience that they are not being used or being backed up by any political organization. In fact, she candidly admitted that their members even use their own money for the campaign. “If we are going to be fighting corruption, it must start with us,” she emphatically declared.
President Rina Manuel and guest speaker Ms. Inday Espina-Varona during the Q&A rulings, regulations, issuances, decisions and policies through habitual seminars conducted by experts in government and in the private practice. The Association also conducts regular dialogues with pertinent government officials on policy issues affecting its members. TMAP has instilled and continues to instill among its members competence, professionalism and integrity in tax practice. TMAP believes that responsible tax practice is indispensable to the country’s economic growth and development.
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