PIA Dispatch - Wednesday, July 21, 2010

President Aquino receives courtesy call from UK Foreign Minister 

President Benigno S. Aquino III received a courtesy call this morning from the new Minister of State of the Foreign and Commonwealth Office (FCO) of the United Kingdom, Jeremy Browne.

The meeting was held at the Music Room of Malacañan Palace, and increased trade and investment between the Philippines and the UK topped the agenda. They likewise discussed ways to improve the capability of the Armed Forces of the Philippines, as well as possible assistance from the British government in Mindanao peace efforts.

Browne also took the opportunity to extend Britain’s appreciation of the role of Filipino workers, especially nurses and caregivers, in British society. In the past six years, more than 20,000 Filipinos were recruited into the UK health service. 

“We recognize the massive contribution of the Filipino workers to our society,” Browne said. “They are hardworking and caring.”

Browne, who was appointed Minister of State of the FCO on 14 May this year, will be in the Philippines from July 20 to 22 as part of his South East Asian trip aimed at actively promoting the business relationship between the Philippines and the rest of South East Asia. This is his first trip to Asia since the assumption of his post.

The courtesy call was an opportune meeting between representatives of two newly installed governments. While the Aquino administration was installed on June 30, the new British coalition government was formed on 12 May 2010, with Tory leader David Cameron as Prime Minister and Liberal Democrat leader Nick Clegg as his Deputy Prime Minister.

The last UK Foreign Secretary to visit the Philippines was Robin Cook in August 1997.

The UK has always been a major European bilateral partner of the Philippines, which is currently attracting serious interest throughout Europe due to what are deemed to be positive developments brought about by the Aquino administration’s policies in fostering political stability, economic growth, and social security. The total bilateral trade between the Philippines and the UK in 2008 was recorded at US$791 million, in favor of the Philippines. 

The UK is cumulatively the biggest European investor in the country, with British investment amounting to US$18 billion in the past decade. There are around 200 British companies active in the Philippines, ranging from multi-national to small and medium enterprises.


BIR to step up tax collection, will go after tax cheats

In a bid to meet its target of Php860 billion, the Bureau of Internal Revenue (BIR) vowed today to intensify its tax collection by running after tax cheats. 

“We are strengthening our enforcement activities, and it is highlighted by filing tax evasion cases,” BIR Commissioner Kim Henares told reporters in a press briefing in Malacañang. “We started last Thursday and we intend to keep on filing every other week.”

“I have confidence in my people and confidence in the attitude of the Filipino people, that they want to help their government; and that we will able to reach the Php860-billion goal,” she said.

Henares clarified however that people who deliberately cheated on their tax payments may still make the necessary restitution by submitting amended income tax returns.

“It is the time for everyone to pay their right taxes. If they had not paid their right taxes before, what they can do is amend their return and put the right amount and pay these taxes before we even file a case against them, because once we file a case, it will be a no-compromise situation. It will continue until the case is resolved,” Henares said. 

According to Henares, about 40 percent of the income earners belonged to the so-called “underground economy,” making it difficult for the BIR to go after them.

“There is more than P4 million that we are collecting from the fixed earners, but for sole proprietors, for individuals doing business and professionals, there is only less than a million from 800,000 people,” Henares said. 

To encourage more income earners to pay their taxes, Henares hinted that the BIR would simplify and streamline the tax payment system. 

The BIR chief also said that the reforms are meant to ensure “that our people will realize the new way of doing business is to make sure that every single centavo collected goes to the national treasury.”

She stressed that the BIR’s intensified tax collection campaign would cover all sectors, adding that no sector is 100-percent compliant. 

Henares urged the public to pay their correct taxes while they still have the chance to do so. Furthermore, she advised consumers to demand a receipt for every commodity or service rendered to them to aid the agency’s campaign against tax evaders.