Moneymen awards

DIE HARD III

Herman Tiu Laurel

10/15/2012

Are readers more impressed now with the Department of Finance secretary with this headline last Sunday: "Purisima gets global award for 'unforgiving' campaign vs tax evasion" coming from Euromoney magazine, a publication for international bankers and money-men. Anything described as "global" should be impressive, with dramatic emphasis on "unforgiving campaign" against pernicious "tax evasion" even. If I hadn't an inkling of Euromoney's awards record I too would be very impressed with Purisima's accolades, but I remember Euromoney in 1995 awarding Bobby de Ocampo "Best Finance Minister" who was caught clueless during the 1997 Asian Financial Crisis which saw a 40 percent plunge in the peso. Today, Euromoney shows its checkered ratings, awarding Barclays Bank "Best Investment Bank" despite its central role in the "biggest banking scam ever" of the Libor scandal.

A few months ago we wrote in this column about "Lie-bor and our labors," on how the banks concentrated in the City of London (a one-square mile where the world's major banks are located) regularly manipulated global interest rates that invariably steal the value of the hard works of nations like our overseas Filipino workers. The Libor rate is used to set the price of around £223 trillion of lending and derivatives. Barclays was at the center of the Libor (London Inter-Bank Offered Rate) scandal and its chairman, CEO and COO were forced to resign because of the scandal. Yet Euromoney has just given not only one award as I mentioned above, but two more for Excellence 2012 including the "Best Global Debt" and "Best Global Flow House." Apparently, the Euromoney board sees the world, money and people differently from the rest of us ordinary folks, and fraudsters are heroes so long as they earn money for the banks.

The "prestigious magazine" Euromoney lauds Purisima for unleashing "an unforgiving strategy to combat tax evasion and maximize revenue from corporates without introducing any new taxes or reforms." Jus to show the ironies: the VAT on toll fees were deemed by the DoF as an "old tax" despite being imposed only now in the time of Purisima. Seventy percent of the economy is really the underground economy, which technically all consists of tax evaders. Euromoney adds, "Purisima has worked closely with President Aquino to champion the idea that 'good governance is good economics.' Bankers in the country say he has stuck to his guns, and the country is reaping the rewards." Like sticking to increasing Philippines debt despite the Philippines' GIR (gross international reserves) at $ 83 billion enjoys $20-billion surplus over the $ 63-billion foreign debt and P 1.7 trillion in SDA (special deposit account) lying idle costing taxpayers four-percent interest. The country's reward is annual $ 200-billion debt payments.

Special praise for Purisima was also heaped for his campaign to raise "sin" taxes on domestic tobacco and cigarette products to the same level as foreign and luxury brands. This campaign has been masked by appeals to "health" but the underlying objective is really to price local tobacco and cigarettes out of the market in favor of foreign and luxury brands, at the same time favoring foreign tobacco and cigarette companies again that would find an expanded market for the inevitably and massively cheaper smuggled tobacco products they can bring in. Purisima was informed of the award while in Tokyo for the International Monetary Fund-World Bank meetings, and put on a show of modesty saying "I'd like to especially recognize Internal Revenue Commissioner Kim Henares … as well as Budget Secretary Butch Abad," both of whom are key allies in the "sin tax" campaign to favor foreign tobacco producers.

Tax collector Purisima is the idol of the bankers and money men, but he's a bane on the taxpaying people. Mark Twain asks: "What is the difference between a taxidermist and a tax collector? The taxidermist takes only your skin." Of course, we recall that wonderful song from the Beatles: "Let me tell you how it will be; There's one for you, nineteen for me; 'Cause I'm the taxman, yeah, I'm the taxman/ Should five per cent appear too small; Be thankful I don't take it all; 'Cause I'm the taxman, yeah I'm the taxman/ If you drive a car, I'll tax the street, If you try to sit, I'll tax your seat./ If you get too cold I'll tax the heat, If you take a walk, I'll tax your feet./Don't ask me what I want it for/ If you don't want to pay some more; 'Cause I'm the taxman, yeah, I'm the taxman/ Now my advice for those who die, Declare the pennies on your eyes, 'Cause I'm the taxman, yeah, I'm the taxman/ And you're working for no one but me."

(Watch Destiny Cable GNN's HTL edition channel 8, Saturdays, 8:15 to 9 p.m., replay 11:15 p.m. and Sunday, and on www.gnntv-asia.com: this week "People's Power Struggle"; tune to 1098AM radio Tuesday to Friday 5 to 6 p.m. http://newkatipunan.blogspot.com)