Senator Franklin Drilon
Senators are set to decide the fate of Chief Justice Renato Corona mainly on his failure to declare $2.4 million in deposits and P80.7 million in commingled聽 funds in his statements of assets, liabilities and net worth (SALNs).
But as Corona supporters argue that 鈥渉e who comes to court must come with clean hands,鈥� did any of the 23 senator-judges declare their dollar or other foreign currency deposits in their respective SALNs for last year?
Hard to tell, according to Estrella Martinez, a former Bureau of Internal Revenue (BIR) director who collected taxes for the government for 32 years.
The Philippine Daily Inquirer showed the 68-year-old Martinez, a CPA-lawyer still in active practice, copies of the most recent SALNs filed by the senators.
Matinez noted that all declarations on cash assets were in pesos apparently in accordance with Republic Act No. 8183 (An Act to Assure the Uniform Value of Philippine Coin and Currency).
Despite the absence of any clear dollar declaration, senators鈥攍ike the impeached Chief Justice and other government employees鈥攚ere not required to disclose dollar deposits in their SALNs because of the rule on 鈥渁bsolute confidentiality鈥� under the Foreign Currency Deposit Act (RA 6426), Martinez said.
鈥淚f the dollar depositor takes a strong exception by consenting to the examination or much less declaring [the amount] in his SALN, that will be valid,鈥� she wrote in a paper she sent to senators over the weekend.
鈥淏ut if the dollar depositor does not consent or does not declare it in his SALN, there is no flagrant violation of the Constitution, the SALN law, or RA 6426,鈥� she said.
3 senators
In an informal survey by the Inquirer, three senators on Sunday said they had disclosed their dollar deposits in their 2011 SALNs, which might not be a good idea according to Martinez.
Martinez said the move would expose the declarant to possible 鈥渄ouble taxation,鈥� noting that dollar deposits had already been subjected to a final withholding tax of 20 percent according to the tax code.
鈥淔or those patriotic dollar depositors who declare their dollar deposits in their SALN, the acquisition cost should be in pesos, which will be part of net worth and will be聽 taxable at 32 percent under the tax code,鈥� she said.
Martinez said there was no such thing as parenthetical declaration only of dollar deposits. 鈥淚t has to undergo the regular process in the normal computation of net worth.鈥�
Drilon no response
Senator Franklin Drilon, who has been criticizing Corona for excluding his dollar deposits in the SALN, did not respond to the Inquirer query.
He earlier rejected Corona鈥檚 challenge that he, together with the 188 members of the House of Representatives who affixed their signatures to the impeachment complaint, sign a waiver on his bank deposits. Corona submitted his own waiver to the Senate impeachment court on Friday.
Drilon was among the richest senators in 2011 with a net worth of P44,937,599.85. He declared cash assets worth P7,526,219.72 and investments worth P14,554,600.
Pangilinan鈥檚 $6,000
Senator Francis Pangilinan said he declared the 鈥減eso equivalent of about $6,000 (more or less P250,000) as part of cash and other investments in the SALN.鈥�
In the document, he had a net worth of P14,564,768.94, of which P2,752,368 was declared as 鈥渃ash in banks.鈥�
Senator Aquilino 鈥淜oko鈥� Pimentel III said he had around $20,000 in a time deposit account in The Bank of Philippine Islands. 鈥淚 converted this to pesos in my head then added the amount to my peso assets both on hand and in banks,鈥� he said in a text message.
In his 2011 SALN, Pimentel declared a total cash asset of P2.5 million. His net worth was P17,078,225.
Osme帽a鈥檚 $1,200
Senator Sergio Osme帽a III said he had also included his dollar deposits in his SALN where he declared P49 million under 鈥渃ash and securities.鈥�
But he said he had only one 鈥渧ery rarely utilized鈥� dollar savings deposit worth $1,200. He said the account was used to 鈥減ay for cancer drugs of my wife and some books not available locally.鈥�
鈥淭he peso value is about P50,000 and included in my SALN,鈥� said Osme帽a, whose net worth was P105,470,000.
Martinez said a government official鈥檚 declaration of his assets and liabilities 鈥渄oes not per se recognize his honesty.鈥�
Correct tax
鈥淭he ultimate question is, did the government official pay the correct income tax based on the increase in his net worth and based on his honest declaration of his dollar deposits?鈥� she said. 鈥淚f not, he is guilty of tax evasion always.鈥�
Martinez said the BIR could use the ongoing impeachment process to 鈥済enerate more taxes,鈥� noting that the government could 鈥渇erret out鈥� tax evasion simply by examining the SALNs, including those of Corona.
鈥淚f you want to collect a tsunami of taxes, go to the SALN,鈥� she said. 鈥淚f Corona did something wrong, it鈥檚 the BIR that should run after him (for possible) tax evasion.鈥�
Cash assets
Among senators with the biggest declared cash assets was Ramon 鈥淏ong鈥� Revilla Jr. with P81,371,669.91 in 鈥渃ash and receivables鈥� on top of P8,168,679.25 in stock investments.
Senator Miriam Defensor-Santiago declared P44,222,627.00 while Senator Panfilo Lacson had P23,208,028.71.
Senator Pia Cayetano had P20,846,218.95 cash on hand and in bank, including P30,311,679.09 in 鈥渞eceivables, other investments, other assets.鈥�
Senator Manuel Villar鈥攖he richest senator with a net worth of P854,213,716鈥攄eclared no specific cash on hand or in bank in his 2011 SALN. He had P219,228,941 in stock investments and P630,396,156 under 鈥渙ther real and personal properties.鈥�
Senate President Juan Ponce Enrile declared a total of P11,235,042 in cash on hand and in bank. He had notes receivables worth P31,380,938 and marketable securities amounting to P1,206,096. He also declared investments worth P68,048,903.
Explain to public
A defense lawyer said Drilon and the 188 members of the House who impeached Corona owed the public an explanation for their refusal to follow the Chief Justice鈥檚 lead in signing a waiver for his bank accounts.
Speaking with the Inquirer over the phone, lawyer Rico Paolo Quicho said Corona answered the Aquino administration鈥檚 challenge for public accountability when he voluntarily signed an unconditional waiver to open his bank deposits for scrutiny.
鈥淭heir decision not to submit a similar waiver would hound their political careers. That鈥檚 certain,鈥� Quicho said, referring to Drilon et al.
Election issue
鈥淎fter everything is done and over with, this will be a political issue. Next elections, the people will ask them, Why did they not sign a waiver and disclose their SALNs to the public?鈥� he added.
鈥淭hat鈥檚 the implication of what they did. What the Chief Justice did is now beyond the impeachment trial,鈥� the defense lawyer said.
Quicho argued that Drilon and Iloilo Representative Niel Tupas Jr., the lead House prosecutor, virtually admitted that they also owned dollar accounts when they declined Corona鈥檚 鈥渃all for unity and transparency.鈥�
Quicho said the lawmakers apparently shared Corona鈥檚 interpretation of the absolute confidentiality clause of the Foreign Currency Deposits Act since they did not want to disclose their own dollar accounts in their SALNs.
鈥淭upas and Drilon said they are not on trial. But because of the Chief Justice鈥檚 voluntary submission of his waiver, they are now on trial and the people demand no less because they are saying that public office is a public trust,鈥� he said.
鈥淗ow can the people trust them if they don鈥檛 want to open up their bank accounts? After the impeachment of the Chief Justice, whether he鈥檚 convicted or acquitted, the people deserve an explanation from them.鈥�
Quicho also assailed the prosecution for saying that Corona鈥檚 waiver would no longer help his case and that it was just an 鈥渁fterthought鈥� on the part of the Chief Justice to open up his bank deposits.
鈥淭hey are just afraid of the truth. They are also afraid that they will be expected to do the same. They are after self-preservation and politics is self-preservation,鈥� he said.