Lifestyle check
Conducting a lifestyle check on private citizens to flush out delinquent taxpayers is a good idea – if it can be implemented efficiently and if it targets the right people. In the absence of racketeering laws, the move can be used to nail down notorious smugglers, jueteng lords and other crooks who enjoy the protection of influential people. The lifestyle check, authorities said, would go hand-in-hand with a tax amnesty program. Both measures aim to boost revenue collection, which has fallen below projections, creating a bigger-than-expected budget deficit and costing the revenue commissioner his job.On the other hand, if the measures simply provide yet another opportunity for large-scale tax evaders and crooks to keep their dirty money after giving a token tax payment to corrupt revenue collectors, the idea should be dropped. Gambling barons and smugglers can buy the protection of police and military officers, judges, prosecutors and politicians. How hard will it be for these crooks to pay off revenue collectors, many of whom are already used to accepting bribes? Corruption has long been one of the biggest hindrances to proper revenue collection. The same problem bedevils the Bureau of Customs and its efforts to stop smuggling. Many revenue and Customs collectors are likely to fail a lifestyle check.
At the hands of the inept and corrupt, the lifestyle check on private citizens is bound to net a couple of small fry who cheat on their tax payments to make ends meet. The worst use for the lifestyle check is for political harassment, which some quarters in the opposition fear. It is often said that those who follow the law have nothing to fear, but in this country, being law-abiding does not guarantee protection from state persecution. The fear is valid, considering the track record of the administration in using state power to harass political enemies.
Fiscal reforms and their positive effects on the economy have been undeniable achievements of this administration. Now weak revenue collection is threatening that bright spot. In moving to increase government earnings, the administration will need proper focus and must keep its revenue collectors on a tight leash.
