In an en banc decision, the Supreme Court ruled that the Attrition Law (RA 9335) is in accord with the Constitution. The Attrition Law was enacted to optimize the revenue-generation capability and collection of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).

                The law intends to encourage BIR and BOC officials and employees to exceed their revenue targets by providing a system of rewards and sanctions through the creation of a Rewards and Incentives Fund and a Revenue Performance Evaluation Board. It covers all officials and employees of the BIR and the BOC with at least six months of service, regardless of employment status.

With this Supreme Court ruling, should we expect any increase in the tax-collection efficiency of both the BIR and BOC? Don’t get any wrong idea. The Attrition Law may not be constitutionally infirm, but as far as boosting tax collection of the BIR and BOC, the system of rewards and sanctions established by the Attrition Law may not be enough to do the trick for our people.

For one, the Attrition Law will not be able to attract new blood to join our collection agencies. With new blood, we are speaking of young, competent and, possibly, more idealistic and motivated professionals. The Attrition Law may do just the opposite, and discourage new blood from contributing to the gargantuan task of boosting tax collection.

In other words, the Attrition Law does not open the doors of the BIR and BOC to idealistic and zealous certified public accountants, lawyers, CPA-lawyers and other professionals from related fields.

We do need to accept the fact that our attempts to improve tax-collection efficiency will more often than not end in failure if we do not focus on improving the BIR’s and BOC’s human resources. More than systems and procedures, more than rules, more than the internal control systems, it is the qualified and motivated professionals who will bring in the tax money for us.

What about those qualified and honest professionals now with the BIR and BOC? Of course, we have to keep them and let them continue doing a good job for the people. The Attrition Law rewards achievements of a group or unit. Thus, it may happen that qualified and honest individuals may be harmed or demoralized by the Attrition Law when the unit to which these individuals belong does not meet its collection target.

We can definitely do more than merely rewarding and sanctioning group output. By focusing on individual performance, instead of group performance, there is a better chance that our tax-collection efforts will succeed. BIR and BOC officials who are performing good jobs will be rewarded. They will also be sanctioned if their individual performances suffer.

Indeed, with the Supreme Court decision, the system of rewards and sanctions provided by the Attrition Law may now be fully implemented without any legal impediment, but will it reap for us the rewards that it promises? Surely, the exercise of judicial power by the Supreme Court cannot be viewed as giving the Attrition Law a stamp of success in the government’s tax-collection efforts as it merely gave the Attrition Law a seal of legal validity (except for the creation of the Joint Congressional Oversight Committee).

The continued struggle against higher budget deficits, and more so the unwillingness of the people to shoulder additional tax burden, will continually force us to look at other means to increase tax collection. On top of the dedication and competence of Secretary Teves and BIR Commissioner Lilian Hefti, the difficult task of sustaining high tax-collection efficiency may start with crafting the right laws aimed at this purpose. To this end, Congress plays a very critical part.

The petition to have the Attrition Law declared as unconstitutional may be the easiest way to put a stop to its implementation. Certainly, too, having the Attrition law declared as null and void will not put us any closer to our goal of improving tax-collection efficiency. Do we need a new law that will allow new blood to join and stay with the BIR and BOC? Or maybe should we just start by prodding Congress to do a better job?  

The author is an associate of BDB Law. If you have any comments or questions concerning the article, you can e-mail the author at rolando.t.devesa@bdblaw.com.ph or call 856-2952.

Editorial: Our ‘Injuns’ don’t drink

AMONG the many, though identical, foreign inputs into the GRP-MILF peace talks—all consistently at the expense of Philippine territory—the most intriguing was the proposal to use the GUS-American Indian Treaties as a template.

What’s in a Name?: Performers

Watching reruns or replays of old Filipino films on television delights many of us. As a child, I remember enjoying the slapstick antics of Dolphy and Panchito, being awed byFernando Poe Jr.’s lightning fists and, in my teenage years, laughed at Champoy, agonized with Bembol Roco and had a terrible crush on Gina Alajar.

William Pesek: China’s Milli Vanilli moment

It was China’s Milli Vanilli moment.

Beijing officials got caught in a lip-synching act of Olympian proportions. Communist Party officials put a cuter girl before the cameras at the opening ceremony instead of the real singer, whose imperfect teeth reportedly didn’t make the grade.

Alálaong bagá: Authority as trust and accountability

Power and responsibility borne out of relationship with God must never be a burden to others. Authority as a gift becomes purposeless when selfishly used (Isaiah 22:15, 19-23). Despite imperfections, one trusted with authority is to make full use of it in the service of the precious others (Matthew 16:13-20).

About Town: GSIS on the hot seat

The Supreme Court panel of retired justices probing the imbroglio at the Court of Appeals (CA) resumes its hearings this week with Government Service Insurance System (GSIS) legal counsel and spokesperson Estrella Elamparo scheduled to testify on her allegations that one of the justices involved in the ongoing controversy spoke with lawyers of one of the contending parties.

Tax Law for Business: Constitutional, yes, but will it help the BIR and BOC?

In an en banc decision, the Supreme Court ruled that the Attrition Law (RA 9335) is in accord with the Constitution. The Attrition Law was enacted to optimize the revenue-generation capability and collection of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).

Reflections from the Mirror: Fallen heroes, Filipino patriots

Two of the recent military casualties in the conflict in Mindanao were from Iloilo City. Marine Cpl. Angelo Abeto who died in Basilan in an encounter with the Moro Islamic Liberation Front (MILF), comes from a remote portion of barangay Airport in Mandurriao District, a grandson of a barangay captain in Iloilo City.