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Drive vs tax evaders starts to weaken.

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| August 01, 2005 | COPYRIGHT 2005 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Philippine Daily Inquirer)

Byline: Daxim L. Lucas and Michelle V. Remo

(First of three parts)

NO ONE has ever gone to jail for evading taxes in the Philippines.

In fact, only one person has been convicted of tax evasion in the 102-year history of the Bureau of Internal Revenue (BIR), according to BIR Deputy Commissioner Kim Henares.

"We had one, but the case was small and nobody paid attention to it," Henares said. "The person never went to jail because he was already old, or somebody [filed an] appeal. That [conviction] is an oddity."

In a government agency that has become infamous for abetting tax evasion, their only victory in a criminal court has become an urban legend-everyone at the BIR has heard of it, but no one can remember specific details of the case or even when it happened.Reformists at the Department of Finance and the BIR have diagnosed the country's problem as a "culture of tax evasion."

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