The Philippines government has said that it will now begin to be able to investigate offshore bank accounts of Filipinos as they begin to clamp down on tax cheats.
The news comes a day after the finance ministry passed regulations that will allow it to swap banking information on individuals as part of an international convention on tax standards.
"Tax evaders now have nowhere to hide," Finance Undersecretary Carlo Carag said in a statement.
Approx five million people file in their income tax returns, according to the Bureau of Internal revenue in the Philippines, which cause budget deficits which result in the ability to only provide poor basic services.
The national statistics office stated there were 39 million people in the labour force as of July 2010 yet the countries population sits at 94 million.
The finance department said the regulations signed into effect on Wednesday fully enforces a law that was originally done in 2009 for the bureau to exchange tax information with foreign counterparts.
This move has had an instant affect moving the Philippines into the so called “white list” of countries who are substantially implementing a tax dodger witch hunt or as the the banks and governments like to call it “substantially implementing tax standards”. This allows the Philippines to request information from banks in other countries.
The new banking information access has led the Internal revenue bureau to say they intend to use everything at its disposal to go after tax evaders.