First of all, who are required to file a sworn Statement of Assets, Liabilities and Net Worth [SALN]?
Section 17 of Article XI of the 1987 Constitution states:
“Section 17. A public officer or employee shall, upon assumption of office and as often thereafter as may be required by law, submit a declaration under oath of his assets, liabilities, and net worth. In the case of the President, the Vice-President, the Members of the Cabinet, the Congress, the Supreme Court, the Constitutional Commissions and other constitutional offices, and officers of the armed forces with general or flag rank, the declaration shall be disclosed to the public in the manner provided by law. ”
This obligation of a public officer or employee was also included in the provisions of RA 6713 – Code of Conduct and Ethical Standards for Public Officials and Employees under Section 8, which states:
“Section 8. Statements and Disclosure. – Public officials and employees have an obligation to accomplish and submit declarations under oath of, and the public has the right to know, their assets, liabilities, net worth and financial and business interests including those of their spouses and of unmarried children under eighteen (18) years of age living in their households.
1. Statements of Assets and Liabilities and Financial Disclosure. – All public officials and employees, except those who serve in an honorary capacity, laborers and casual or temporary workers, shall file under oath their Statement of Assets, Liabilities and Net Worth and a Disclosure of Business Interests and Financial Connections and those of their spouses and unmarried children under eighteen (18) years of age living in their households.”
The question now arises as to what value to use in determining the “net worth” of the filer? Although the SALN form provides a column for “acquisition cost” some filers do not use this column in determining their net worth.
This leads us to ask how do government determine the value of our real properties?
As far as the government is concerned, the values of our real estate assets are the values indicated in the Tax Declaration [TD] as assessed by the Assessors’ office. These are the values the government used as the amount of just compensation whenever it expropriates our real properties.
So as far as the government is concerned the net worth of a person should be the difference between the government assessed value of his/her asset and liabilities.
We all know that the value of land appreciates in time, this is the reason why the Assessors’ office revised the value of our land every three [3] years to conform to the increase of the current value of the time. So the property tax we pay increases in time.
If a SALN filer uses the acquisition cost of his/her real properties, it will remain the same over time, which when used in determining the net worth will not result to the current net worth of the filer because his/her land already appreciates in value while he/she still used the old value.
If a SALN filer uses the government assessed value of his/her land in determining the net worth of the filer, his/her net worth reflects the logical true value in current time. And this is the logic behind the used of assessed value in determining the current net worth of a filer and why it is a generally accepted practice among filers of SALN.
Take HLI as a case in point, its acquisition cost is 5M pesos, based on 1986 assessed value is around 102M pesos and in 2006 assessed value is 10B pesos. If the owner of this land is a government employee and he/she used the 5M pesos acquisition cost every time he/she files SALN does his/her SALN reflects his/her true net worth?
Based on these, who is more credible filer of SALN, the one who used the acquisition cost that remains the same over a period time or the one who used the assessed value that increases over a period time as determined by the government?
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I Will Make It Happen 
SALN – Who is the Honest Filer?
First of all, who are required to file a sworn Statement of Assets, Liabilities and Net Worth [SALN]?
Section 17 of Article XI of the 1987 Constitution states:
“Section 17. A public officer or employee shall, upon assumption of office and as often thereafter as may be required by law, submit a declaration under oath of his assets, liabilities, and net worth. In the case of the President, the Vice-President, the Members of the Cabinet, the Congress, the Supreme Court, the Constitutional Commissions and other constitutional offices, and officers of the armed forces with general or flag rank, the declaration shall be disclosed to the public in the manner provided by law. ”
This obligation of a public officer or employee was also included in the provisions of RA 6713 – Code of Conduct and Ethical Standards for Public Officials and Employees under Section 8, which states:
“Section 8. Statements and Disclosure. – Public officials and employees have an obligation to accomplish and submit declarations under oath of, and the public has the right to know, their assets, liabilities, net worth and financial and business interests including those of their spouses and of unmarried children under eighteen (18) years of age living in their households.
1. Statements of Assets and Liabilities and Financial Disclosure. – All public officials and employees, except those who serve in an honorary capacity, laborers and casual or temporary workers, shall file under oath their Statement of Assets, Liabilities and Net Worth and a Disclosure of Business Interests and Financial Connections and those of their spouses and unmarried children under eighteen (18) years of age living in their households.”
The question now arises as to what value to use in determining the “net worth” of the filer? Although the SALN form provides a column for “acquisition cost” some filers do not use this column in determining their net worth.
This leads us to ask how do government determine the value of our real properties?
As far as the government is concerned, the values of our real estate assets are the values indicated in the Tax Declaration [TD] as assessed by the Assessors’ office. These are the values the government used as the amount of just compensation whenever it expropriates our real properties.
So as far as the government is concerned the net worth of a person should be the difference between the government assessed value of his/her asset and liabilities.
We all know that the value of land appreciates in time, this is the reason why the Assessors’ office revised the value of our land every three [3] years to conform to the increase of the current value of the time. So the property tax we pay increases in time.
If a SALN filer uses the acquisition cost of his/her real properties, it will remain the same over time, which when used in determining the net worth will not result to the current net worth of the filer because his/her land already appreciates in value while he/she still used the old value.
If a SALN filer uses the government assessed value of his/her land in determining the net worth of the filer, his/her net worth reflects the logical true value in current time. And this is the logic behind the used of assessed value in determining the current net worth of a filer and why it is a generally accepted practice among filers of SALN.
Take HLI as a case in point, its acquisition cost is 5M pesos, based on 1986 assessed value is around 102M pesos and in 2006 assessed value is 10B pesos. If the owner of this land is a government employee and he/she used the 5M pesos acquisition cost every time he/she files SALN does his/her SALN reflects his/her true net worth?
Based on these, who is more credible filer of SALN, the one who used the acquisition cost that remains the same over a period time or the one who used the assessed value that increases over a period time as determined by the government?