IF the Bureau of Internal Revenue (BIR) had its way, tax evasion would be among the “predicate crimes” punishable under the Anti-Money Laundering Act (Amla), alongside kidnapping for ransom, plunder and drug trafficking and others.
In a position paper submitted to the Senate Sub-committee on Anti-Money Laundering, the BIR said the inclusion of tax evasion as one of the crimes in money laundering is “proper and timely.”
Senators are currently discussing amendments to the Amla.
Predicate crimes are unlawful activities under the Amla for which the government can seek the freezing of funds or assets of individuals.
“It is in line with the present trend among national governments and international organizations that are dedicated to curtailing illicit capital flight as a means of supporting and sustaining economic development in low-income countries,” the agency said.
The BIR said the Task Force on Financial Integrity and Economic Development (Fied) recommended on January 17, 2011, to the Financial Action Task Force (FATF) that tax crimes be included as predicate offenses to money laundering.
The Fied is a group of government, research and advocacy organizations focused on achieving greater transparency in the global financial system for the benefit of developing countries.
“Tax evasion is a crime committed by both individuals and corporate entities and the proceeds of the crime are the funds that should have been paid to a local or national government,” it said
In 2000 the FATF blacklisted the Philippines as a money-laundering haven, pushing legislators to pass the Amla. The FATF is an intergovernmental body that aims to develop and promote national and international policies to combat money laundering and terrorist financing.
“Tax evasion is essentially present in the first stage of the money-laundering process for the reason that individuals involved in illegal enterprises are necessarily engaged in tax evasion because reporting their true personal income from illegal activities would serve as closely intertwined with tax evasion,” the BIR said.
Besides the inclusion of tax evasion in the list of predicate crimes, the BIR is also recommending that those facing money-laundering charges be automatically prosecuted for tax evasion
The Senate Committee on Banks and Financial Institutions completed the Committee Report on Senate Bill 2484 that aimed to amend the Amla.
