When good faith is not good enough

 Economy
May 212014
 

WHO among us has not heard of the Bureau of Internal Revenue (BIR) running after taxpayers who have allegedly failed to pay their correct taxes? By now, most of us are aware of the BIR’s shame campaign, issuing Tax Watch advertisements that draw the public’s attention towards what may be perceived as deliberate non-compliance by certain individuals or groups. For instance, one of these advertisements showed a doctor sitting on the shoulders of a teacher, with the slogan, “When you don’t pay your taxes, you’re a burden to those who do”. Other advertisements are geared towards other professions and even top companies.

Henares reminds Pacquiao: Settle P2.6-B tax deficiency

 Entertainment
Apr 152014
 
Henares reminds Pacquiao: Settle P2.6-B tax deficiency

Freddie Roach: “We are training for big game in this fight. Manny (Pacquiao, left) knows he is going to have to hunt Bradley down and close the show this time. The first fight with (Timothy) Bradley was so easy for Manny that after six rounds he just took it easy on him. Not this time. Our Mantra is ‘Close the show. No mercy.” MANILA (Mabuhay) – A day after he regained his WBO welterweight title, boxing champ and congressman Manny Pacquiao still faces a tough fight against Bureau of Internal Revenue (BIR) Commissioner Kim Henares. Henares once again reminded Pacquiao to settle his previous tax deficiency, which has now ballooned to an estimated P2.6 billion due to interest. Pacquiao’s tax deficiency was assessed at P2.1 billion as of December 2012, after the BIR discovered that he has not been paying income taxes in the Philippines on his winnings for his previous fights in 2008 and 2009. “As of December 2012, P2.1 billion. Pero may 2013, so 20% (interest) pa yan. Ngayon April, may 6.67% (interest) pa. So tumatakbo na yan… So yun P2.1 billion, madaragdagan ng P26.67% (interest). Estimate lang around P2.65 billion na (tax deficiency),” she said. During the boxing champ’s visit to the BIR last year, Henares said they discussed how he can settle his tax deficiency. “Alam niyo ho, bumisita siya sa amin last year. Sinabi namin kung ano puede niyang gawin but since bumisita siya, wala ho ulit kaming communication,” she said. Last January, Pacquiao paid Read More …

Doctors’ group commits to pay correct taxes

 Entertainment
Apr 142014
 
Doctors’ group commits to pay correct taxes

The government ads, which ran in Manila newspapers on Sunday, showed a female teacher lecturing in front of her class with a woman in a medical suit holding a doctor’s clipboard sitting on her shoulders. MANILA (Mabuhay) – Members of the Philippine College of Physicians (PCP) has given their support to the Bureau of Internal Revenue’s (BIR) efforts for greater tax compliance among medical doctors. In a statement, PCP President Priscilla B. Caguioa said: “Foremost in our tasks and responsibilities as medical doctors is to serve, guided by our moral obligation to provide the optimum care to individuals who are in need. We, in the PCP, have fought for necessary reforms to clean our own ranks. We have been successful doing so, but not without the government’s cooperation and encouragement.” Because of these reforms, the group saw a “palpable increase” among members in their issuance of receipts, reliable maintenance of records, VAT registration, as well as the payment of taxes. “Honest compliance is part and parcel of the ethical responsibilities of any professional in contributing his or her share in nation building,” Caguioa said. She noted the PCP was at the forefront of pushing for the passage of the Sin Tax Law. “Apart from the campaign’s obvious health components and effects, PCP’s sin tax advocacy resulted in the increase in taxes imposed on tobacco and alcoholic beverages. The effort would not have succeeded without its partnership with the BIR, among others,” she said. Because of the Sin Tax Law, the Read More …

NGCP says it dutifully pays franchise taxes to gov’t

 Economy
Apr 042014
 
NGCP says it dutifully pays franchise taxes to gov’t

MANILA, Philippines – The National Grid Corp. of the Philippines (NGCP), the country’s power grid operator, maintained that it is exempt from income tax but stressed that it dutifully pays its franchise taxes to the government. NGCP, a privately owned transmission company, said that its tax-exempt privilege is provided under Republic Act 9511, the law that granted NGCP a 50-year franchise to operate the grid. The grid operator made the clarification after the Department of Finance (DOF) published a Tax Watch print ad stating that only 39 of the top 100 corporations ranked by the Securities and Exchange Commission (SEC), the corporate regulator, landed on the Bureau of Internal Revenue’s (BIR) list of 500 top corporate/non-individual taxpayers. NGCP is in the SEC’s list of top 100 corporations, occupying the 25th spot, based on revenues. On the other hand, BIR’s list, which was based on income tax returns, did not include the grid operator. NGCP spokesperson Cynthia Perez-Alabanza said that the company pays franchise tax in lieu of income tax.  “NGCP’s franchise granted through Republic Act 9511 mandates that it pay a franchise tax equivalent to three percent of all gross receipts, ‘in lieu of income tax and any and all taxes, duties, fees and charges of any kind, nature of description levied, established or collected by any local or national authority on its franchise, rights, privileges, receipts, revenues and profits, and on properties used in connection with its franchise,” she said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Read More …

BIR takes lead in importer accreditation process

 Economy
Apr 022014
 

IN AN effort to curb incidents of smuggling that have robbed the government of billions of pesos, the Department of Finance recently issued Department Order (DO) No. 12-2014, requiring importers to secure an Importer Clearance Certificate (ICC) from the Bureau of Internal Revenue (BIR) as part of their accreditation process with the Bureau of Customs (BoC).

BIR extends deadline for Yolanda victims

 Economy
Mar 242014
 
BIR extends deadline for Yolanda victims

ORMOC CITY , Philippines   – Commissioner Kim Henares of the Bureau of Internal Revenue has finally relented to requests of Yolanda-affected businesses to grant them more time to file their declaration of losses. Business in Yolanda hit Regions 6 and 8 had been given 45 days after Nov. 8 to file their sworn declaration of losses. The BIR has extended the period up to March 31, 2014. Ormoc revenue district officer Eduardo Obero shared this information before an audience gathered for this year’s annual tax campaign held at the Sabin Resort Hotel last Friday. Obero said the commissioner issued Revenue Memorandum Circular 18-2014 on March 18, 2014. Henares, in the circular, said “In the light of overwhelming requests amidst the untold events brought about by Supertyphoon Yolanda”, the filing of declaration of losses arising from casualty, theft, robbery or embezzlement “is hereby extended until March 31, 2014.” Henares  said the availment of the “extraordinary relief” is “limited to losses sustained by taxpayers engaged in business in areas affected by Typhoon Yolanda, whose books of accounts and relevant records were completely damaged/destroyed, where, as a result, data reconstruction could not be achieved.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1

Significant changes to the BIR assessment process

 Economy
Jan 122014
 

(First of two parts) WITH the Bureau of Internal Revenue (BIR) ’s intensified focus on enforcement and audits, taxpayers need to understand the investigation and assessment process and the available remedies under the law, particularly now that the recently issued Revenue Regulations (RR) No. 18-2013, dated Nov. 28, 2013 and which took effect on Dec. 15, 2013, introduced major changes to the BIR’s assessment processes.

Palace: ‘Friendly’ shootfest will not deter BIR from pursuing tax case vs. Pacquiao

 News
Jan 012014
 
Palace: ‘Friendly’ shootfest will not deter BIR from pursuing tax case vs. Pacquiao

The government will still pursue the tax case against boxing icon and Sarangani Rep. Manny Pacquiao despite a recent sports activity in Malacañang where President Benigno Aquino III had Pacquiao partnered with Internal Revenue Commissioner Kim Henares. “Joining a sports activity where the President is present does not stop or deter the [Bureau of Internal Revenue] from pursuing its case against Representative Pacquiao,” said Presidential Communications Operations Office (PCOO) head Herminio Coloma Jr. in a report on GMA News’ “24 Oras” Wednesday. He was referring to the shootfest held at the Presidential Security Group’s firing range last December 21 where Pacquiao was partnered with Henares. The Pacquiao-Henares tandem in the shootfest was reported by the Philippine Daily Inquirer on Jan. 1, 2014. The BIR has filed a P2.2-billion tax evasion case against Pacquiao, resulting in the freezing of his bank accounts. The case stemmed from the supposed failure of Pacquiao’s accountant to report in his income tax returns (ITR) the multi-million-dollar taxes collected by the US Internal Revenue Service (IRS) from his prize winnings for the years 2008 to 2009, reportedly amounting to $28 million. The Court of Tax Appeals has issued a gag order against Pacquiao and Henares. Interviewed by GMA News, Henares said she and Pacquiao did not talk about the tax case during the shootfest. “We just conversed about who shoots which target and how we will do it,” Henares said. “Lahat ng usapan was all about the friendly game lang.” She added that they were “cordial” Read More …

Imposition of concurrent Interests: Basis and effects

 Economy
Dec 302013
 
Imposition of concurrent Interests: Basis and effects

In all assessments by the Bureau of Internal Revenue (BIR), the total amount of taxes a taxpayer has to pay grows exponentially as the tax investigation continues to be unsettled. These deficiencies usually involve large amounts which anybody, even those who are not privy to the tax investigation, speculate on the validity of the large deficiencies involved in an investigation. Needless to mention, many people wonder how the BIR came up with a billion-peso worth assessment against our Pinoy pride, Manny “Pacman” Pacquiao. The unimaginable amount of deficiency taxes involved in some BIR investigations could be attributed to the increment of the unpaid basic tax the taxpayer is being assessed of. This increment is commonly known as the penalty interest. Generally, an interest at the rate of 20 percent per annum (assuming there is no element of fraud) is imposed on the unpaid taxes. But the imposition of this interest retroacts from the time the taxpayer was supposed to pay the tax until the actual payment thereof. But assessments usually come out two years after the taxpayer filed its return. This is because the BIR has three years within which to assess any deficiency taxes (again assuming there is no element of fraud). Thus, if an assessment is issued two years after the taxpayer filed its return, an automatic 40 percent (20 percent x 2) interest will be imposed on the basic deficiency tax. This is one reason why deficiency taxes involve a considerable amount. The interest imposed in this Read More …

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