Philippines: Demand letter sent to Marcos family on $3.8 billion tax liabilities, BIR confirms

Manila: The Bureau of Internal Revenue (BIR), the country's taxmen, sent a written demand to the Marcos family in December 2021 to pay their estate taxes liability worth Php203 billion ($3.8 billion), local media reported.

BIR Commissioner Caesar Dulay confirmed this in response to a letter sent to them by Ernest Ramel, the chairman of Aksyon Demokratiko party, who inquired about the status of Marcos tax liabilities.

“The BIR did send a written demand to the Marcos heirs on December 02, 2021 regarding their tax liabilities,” Dulay said in a letter dated March 14, 2022. It was only released to the media by Ramel on Wednesday (March 16, 2022).

In response, Ferdinand “Bongbong” Marcos Jr. on Wednesday stated: “There’s a lot of fake news involved there, let’s leave it to the lawyers to discuss it because the so-called facts that they quote are not facts at all,” he said.

“They are just presumptions, they are not familiar with the cases or they choose not to be familiar with the case so, it’s in the courts. In my case whatever the court orders me to do, I will do,” he added.

Marcos Jr’s spokesperson Vic Rodriguez said that the unpaid estate tax of the Marcos family remains "unsettled" — since the properties linked to the case are still under litigation.

Rodriguez also noted that even BIR and the Presidential Commission on Good Government (PCGG) “have arrived at an agreement for the BIR to wait for the (court) decision on the said case before any collection.”

Rodriguez’s statement was, however, was questioned by Ramel, who wrote PCGG chairman John Agbayani to verify the claim of Rodriguez that the PCGG and BIR reached an agreement.

If there was indeed an agreement, Ramel said Agbayani should disclose the details since the issue is a “matter of public interest.”

Otherwise, Ramel added, “this is another proof that the camp of Marcos Jr. has again lied as they always do in so many issues about their family, including their ill-gotten wealth.”

Manila Mayor Francisco “Isko Moreno” Domagoso is Aksyon Demokratiko party’s standard bearer for the upcoming May 9 presidential elections, and is running against Ferdinand Marcos Jr., the namesake of former president Marcos Sr who ruled the Philippines for 21 years until he was ousted in a cilivian-backed military coup.

Isko Moreno’s camp earlier asked PCGG if there there is a government "deal" over the unpaid Php203B estate tax of the Marcoses. Moreno, who is campaigning in the Visayas, however, said he is "happy" that BIR demanded the Marcos family to pay their estate taxes.

“I’m very happy that Commissioner Dulay wrote them a demand letter for them to pay. Sana makuha natin (I hope we could get their payment,)" he was quoted as saying in an interview in Silay City, Negros Occidental.

If elected president, Domagoso vowed he will ensure that the Marcos tax liability will be collected by the government.

When a person one dies, his or her assets are given to lawful “heirs”, or beneficiaries. This process requires paying for a specific tax called “estate tax”.

“Estate” is the term that comprises a person’s net worth by the time of death. This includes properties, personal possessions, financial securities, and other assets that the person had control over before passing away.

In Philippine law, estate tax refers to the tax on the right of the deceased person to transfer their assets to lawful heirs or beneficiaries. The BIR explained that estate tax is not property tax but is imposed on transferring assets when the owner dies.