Calling for the public release of the Statements of Assets, Liabilities and Net Worth (SALNs) of public officials may be futile, as some officials could resort to falsifying them, according to a tax expert.

Mon Abrea, chief tax advisor for the Asian Consulting Group and a former Bureau of Internal Revenue (BIR) examiner, said there are several ways officials can forge their SALNs.

He said some hide their assets by placing them under the names of family members or by omitting certain accounts, overstating debts or listing fake liabilities, using business fronts or shell corporations to conceal ownership, or failing to update their SALNs after acquiring new properties.

“By divesting from their family businesses but remaining a beneficial owner so it doesn’t reflect in their SALN, so there would seem to be no conflict of interest,” Abrea added.

Public access to SALNs

Ombudsman Jesus Crispin Remulla recently lifted restrictions on public access to SALNs that were imposed by his predecessor, Samuel Martires.

Remulla vowed to make access to these documents easier, saying that people can now file requests without needing the consent of the public official whose SALN is being sought.

Abrea supported the move. “What is the purpose of the SALN if only they (officials) can see it? That’s why they are cheating even more. They are not taking it seriously,” he said, emphasizing that public access is necessary.

BIR’s role

He also urged the public to watch for two red flags in SALNs: unexplained wealth and discrepancies between an official’s declared assets and their lifestyle.

The disclosure of SALNs played a key role in the impeachment of former Chief Justice Renato Corona in 2014, when former Ombudsman Conchita Carpio-Morales used the documents to investigate his alleged ill-gotten wealth.

Abrea said the BIR plays a crucial role in helping the Ombudsman validate SALNs and is obligated to assist with lifestyle checks and asset verification.

He recommended that instead of focusing on ordinary taxpayers, the BIR should be more stringent and proactive when auditing high-ranking public officials, big taxpayers, and individuals exhibiting signs of unexplained wealth.

This would include politicians in political dynasties, their family businesses, campaign donors, and government contractors.

“If the BIR cross-matches income tax returns with SALN declarations, real property records, and business interests, it could uncover clear inconsistencies that signal corruption or tax evasion,” Abrea said.

Penalties

According to Abrea, officials found guilty of falsifying documents face several penalties.

Falsification of public documents by public officers falls under Article 171 of the Revised Penal Code, while Article 183 covers perjury if the false declaration was made under oath.

Additionally, Republic Act 6713 provides administrative and criminal sanctions for dishonesty and non-filing; Republic Act 3019, or the Anti-Graft and Corrupt Practices Act, penalizes concealment of ill-gotten wealth; and Republic Act 7080, or the Plunder Law, applies to unexplained wealth amounting to P50 million or more.

Abrea said that “those guilty of moral turpitude, including tax evasion, may face perpetual disqualification.”