In tax examinations, the Bureau of Internal Revenue (BIR) usually applies a set of standard procedures, with two being the most common. First, it compares the purchases reported on the Summary List of Sales (SLS) submitted by suppliers, on the one hand, with the purchases reported on the value-added tax (VAT) returns/Summary List of Purchases (SLP) by the taxpayer, also known as the Reconciliation Listing for Enforcement System (RELIEF) audit.
On July 5, 2002, the Philippine Economic Zone Authority (PEZA) issued Memorandum Circular (MC) No. 2002-015 providing for the treatment of “Drop-Off” exports of economic zone export-producer enterprises with respect to taxes and duties to be paid to the Bureau of Customs (BoC).
“Many persons read and like fiction. It does not tax the intelligence and the intelligence of most of us can so ill afford taxation that we rightly welcome any reading matter which avoids this.” – Rose Macaulay
THE TAX bureau has scrapped the advanced income tax and value-added tax (VAT) or percentage tax payment scheme for “privilege store” or “tiangge” operators, instead tightening rules on the taxation of their transactions.
MANILA, Philippines – Finance Secretary Cesar Purisima warned tax evaders on Tuesday while stressing the need to monitor statistics specific to various taxpaying groups. “You can run, but you cannot hide from Commissioner Henares,” he said, referring to efforts being done by Bureau of Internal Revenue (BIR) Commissioner Kim Henares to chase after citizens who underdeclare or avoid their taxes. Purisima said that part of the Department of Finance’s tax watch campaign is to increase transparency in tax payments and to ask Filipinos to pay the right taxes by revealing insights about the tax base. “We want to raise awareness about tax payments and ask the public if the numbers we observe make sense,” he said. He noted as an example the number of taxpaying pawnshops in the country versus the number being supervised by the Bangko Sentral ng Pilipinas (BSP). “Why is it that we have 5,230 pawnshops that paid in 2012, but the BSP supervises 6,301? The average tax payment for pawnshops also went down from P363,085 in 2011 to P315,812 in 2012,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He goes on by saying that in Binondo, a place full of popular Chinatown eateries, there are only 120 registered restaurants with a combined tax of P156,780 in 2012, lower than the P222,000 posted in 2010. “This average is lower than the average tax payment of restaurants in Baguio, Tarlac, Legaspi City, and the Cordillera Administrative Region. Is that right?” he said. He added Read More …
WHY DOES a taxpayer go to court seeking value-added tax (VAT) refund when he knows he does not comply with the requisites for a tax refund?
TAX collections from large taxpayers account for around 64% of the total annual tax take of the Bureau of Internal Revenue, and the BIR will likely continue to rely heavily on the contributions of large taxpayers to its collection goal.
THE JAPANESE Embassy is confident that tax refunds due foreign firms will be released as it awaits a schedule of payments from the Philippine government, an official said.
THE VAT TREATMENT of sale of motor vehicle by persons who are not in the regular business of selling cars has often been raised as an issue in tax examinations. The provision usually cited is Section 105 of the Tax Code which provides that VAT shall be imposed on any person who, in the course of trade or business sells, barters, exchanges, leases goods or properties, and renders services. The phase “in course of trade or business” is defined in the same section as “the regular conduct or pursuit of a commercial or an economic activity, including transactions incidental thereto.”
THE JOINT Foreign Chambers of the Philippines (JFC) has asked Secretary Cesar V. Purisima, as head of the Cabinet’s economic cluster and the Finance department, to ensure that investors receive its value added tax (VAT) refunds.