TAX RELIEF FOR VICTIMS OF PRE-NEED SCAM - CHIZ

Sen. Chiz Escudero yesterday batted for tax breaks for victims of failed pre-need companies as the April 15 tax payment deadline draws near.

He said if the government can grant tax amnesty to delinquent taxpayers, then why not give tax deduction to pre-need victims.

"The government's failure to check and prevent the collapse of these pre-need companies only makes it morally right to give their hapless planholders tax relief," the opposition senator said.

Escudero said there is still time for the administration to work out the details before the income tax filing season ends on April 15.

He suggested the government can give either full or partial relief, pointing out that any revenue losses from it could be offset by plugging loopholes in the collection process.

There are about 14,000 affected planholders who have lost at least 330 million pesos in investments with the bankrupt Legacy Group alone. In the case of Pacific Plans, about 34,000 planholders have claims against it.

The SEC said about 100,000 pre-need beneficiaries, including those serviced by the College Assurance Plans, could have stopped schooling since the crisis in the pre-need industry began in 2004.

According to estimates by the Parents Enabling Parents (PEP) Coalition, the claims of over a million pre-need planholders could amount to billions of pesos.