Following the Money: Tax Enforcement as Key to Combating Corruption in the Philippines

Corruption continues to siphon off between ₱700 billion and ₱1.3 trillion every year in the Philippines, a staggering amount equivalent to roughly 20% of the national budget, according to reports by institutions including the World Bank, IMF, and ADB. Misappropriation ranges from ghost projects and inflated contracts to exploitation of confidential funds, enriching political dynasties and their allied contractors at the expense of ordinary citizens.

Globally, the strategy of targeting corrupt figures through tax enforcement has proven effective. The infamous case of Al Capone, imprisoned in 1931 for tax evasion rather than his more notorious crimes, set a precedent that has been replicated worldwide. Italy dismantled mafia networks through rigorous tax audits, Brazil’s "Operation Car Wash" uncovered over $5 billion in corrupt dealings, and South Korea held former presidents accountable for tax-related corruption tied to family-controlled conglomerates.

In contrast, the Philippines ranks 114th out of 180 countries on Transparency International’s 2024 Corruption Perceptions Index, trailing behind neighboring ASEAN nations like Malaysia and Vietnam. This weak enforcement damages the country’s global standing and erodes domestic democracy.

Raymond “Mon” Abrea, a Harvard-educated tax expert and author of "Reimagining the World Without Corruption," emphasizes that corruption represents a fundamental failure in governance. It not only violates laws but also depletes public trust, deters foreign investment, and exacerbates social inequality. "Corruption acts like a hidden tax on investments, weakening economic growth and reducing government revenue," Abrea stated.

Abrea calls for decisive action from agencies such as the Bureau of Internal Revenue, the Commission on Elections, and the Office of the Ombudsman. Proposed measures include:

1. Comprehensive audits of confidential and discretionary funds.
2. Investigations into joint ventures and contractors associated with political dynasties.
3. Scrutiny of campaign donors benefiting from government contracts.
4. Relentless prosecution of both politicians and contractors involved in corrupt activities.
5. Enforcement of perpetual disqualification for convicted officials to dismantle dynastic abuses.

"The goal must be to ensure public funds build schools and hospitals rather than fund luxury lifestyles," Abrea urged. He stressed that holding the powerful accountable is essential not only for justice but for fostering an environment conducive to investment and democratic strength.

As the Philippines seeks to rebuild governance trust and safeguard economic development, the principle remains clear: follow the money, enforce the law without exception, and prioritize the collective welfare over personal enrichment.