By Justine Irish D. Tabile, Senior Reporter
THE Philippines should revisit its stringent bank secrecy rules and strengthen the exchange of financial information with other countries to help address corruption and tax evasion, SGV & Co. Head of Tax Jules E. Riego said on Monday.
“One area we can revisit is the Philippines’ tight secrecy of bank deposits law. None of our ASEAN (Association of Southeast Asian Nations) neighbors has such a law, only the Philippines has it,” Mr. Riego said at the 5th SGV Tax Symposium at the Makati Shangri-La.
“And among the original five member states of ASEAN, only the Philippines has so far not yet signed up on CRS,” he added, referring to the Common Reporting Standard, which provides for the automatic exchange of financial account information between participating jurisdictions for tax purposes.
Mr. Riego said the next step should be to determine which further reforms are necessary to close opportunities for corruption and tax evasion as other countries move toward greater financial transparency.
He urged Filipinos to remain vigilant about how public funds are spent, citing the flood control corruption scandal and its impact on the economy.
“We should not get tired of asking for transparency and accountability because we deserve nothing less,” he said.
Mr. Riego said vigilance is especially important as economic growth slowed to 2.3% in the second quarter, reflecting the lingering impact of the flood control corruption scandal. This brought first-half growth to 2.6%, well below the government’s 3.5%-4.5% full-year growth target.
“Because of that same scandal, public infrastructure spending tapered off, leading to softer household spending that is weighing down on the economy, not to mention that the continuing geopolitical situation and world oil prices are putting so much pressure on the Philippine peso,” he added.
Mr. Riego said the Philippines could draw lessons from neighboring ASEAN countries in improving tax administration, citing Vietnam’s approach to tax refunds, Malaysia’s implementation of electronic invoicing, and Indonesia’s experience with tax amnesty.
Meanwhile, Finance Undersecretary Rolando T. Ligon, Jr. said ASEAN member states had identified the exchange of information as among their priorities in combating illicit financial flows and cross-border tax avoidance.
Mr. Ligon said discussions at the 22nd ASEAN Forum on Taxation in March highlighted the need to address gaps in financial information sharing, including delays in responding to requests and legal or administrative barriers to accessing financial data.
“The forum concluded with a commitment to improve bilateral data matching among member states,” he said, adding that closing information gaps across ASEAN would “eliminate blind spots and severely disrupt organized syndicates exploiting cross-border tax jurisdictional differences.”
The DoF official also said the Philippines has concluded negotiations on a double taxation agreement with Singapore, with the agreement awaiting formal signing, while treaty talks with Laos and Malaysia are ongoing.
Mr. Ligon also said that the country’s double taxation agreement with Cambodia is expected to enter into force on Jan. 1, 2027.
For her part, SGV Chairman and Country Managing Partner Rossana A. Fajardo said tax policy should go beyond compliance and revenue collection to strengthen the country’s competitiveness and attract investments.
“Tax policy is not simply about compliance and revenue collection. It is also about creating an environment where businesses can thrive, investments can grow, and the Philippine economy can remain competitive in an increasingly interconnected region,” she said.
She said the Philippines’ ASEAN chairship in 2026 presented an opportunity to deepen regional cooperation, promote cross-border investment, and pursue policies that provide greater clarity and certainty for businesses.
“These priorities reinforce the need for policies that facilitate cross-border trade and investment, encourage innovation, and enable businesses to seize opportunities across the region,” she added.
Meanwhile, Bureau of Internal Revenue (BIR) Commissioner Charlito Martin R. Mendoza said the agency was pursuing digital transformation and audit reforms to improve taxpayer services and strengthen accountability.
“We are pursuing immediate improvements that taxpayers can readily feel, consistent with the direction of Finance Secretary Frederick Go,” he said.
“At the same time, we are introducing lasting institutional reforms that establish better ways of doing things, ways we would no longer want to go backwards.”
Mr. Mendoza cited the agency’s QR-enabled certificate of registration and registration seal patch, which make it easier to verify the BIR registration of online establishments.
“In fact, as of last week, around 53,000 online merchants and content creators have registered and secured their BIR seal patch,” he added.
Mr. Mendoza said the BIR was moving forward with electronic invoicing, which could simplify tax reporting, improve the efficiency of audits, and accelerate the verification and processing of tax refunds.
The BIR has also adopted a single-instance audit framework, generally limiting taxpayers to one electronic letter of authority per taxable year, subject to exceptions, alongside risk-based, system-assisted audit selection.