ATBC Tax Advisor
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Accounting professionals face ever-changing challenges in today’s increasingly complex financial and regulatory environment.The articles highlight the most significant developments in Taxation as a result of amendments in the law and new issuance from the Bureau of Internal Revenue (BIR) and other administrative agencies. It also headlines recent pronouncements of the courts and quasi-judicial bodies involving tax and corporate matters.
News 1. BIR train sights on self-employed...
MANILA, Philippines - Self-employed individuals and businesses under-declaring taxes or collecting a lot of income under the table, beware. The Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) yesterday declared an all-out war against those deliberately under-declaring their income to evade taxes, saying, “enough is enough and there is no more excuse to not pay taxes.” “With computerization, you cannot hide anymore. We know who you are and where you are. We will no longer tolerate what you’ve been doing,” said Finance Secretary Cesar Purisima in a joint briefing by the DOF and BIR.
“The right of government to collect taxes is absolute. Every Filipino, whether big or small, should pay taxes. Do not be an accomplice to the crime of tax evasion. When you cheat on taxes, you are robbing your children of their future and the country of its potential,” Purisima pointed out.
He said the government’s crackdown on tax evasion might see the worst and persistent offenders face criminal charges.
News 2. Mandatory attachment of BIR 1702
THE Bureau of Internal Revenue (BIR) has posted in its website a one-page mandatory attachment to the year 2012 annual corporate income tax return (BIR Form No. 1702), requiring a breakdown of the regular Itemized Deductions claimed in the annual income tax return.
However, the said attachment is not required for corporations which chose the Optional Standard Deductions (OSD) as their method of deduction.
It may be recalled that in the new BIR Form 1702 (November 2011 version), only the total of the regular itemized deductions is required to be reflected in Item 22 of the tax return. Hence, the BIR is reviving its previous requirement to provide the details of itemized deductions in the tax return.
In preparing the details of itemized deductions, corporate taxpayers must ensure that
the total amount indicated in the attachment should be the same amount reflected in the annual income tax return.
News 3. BIR monitoring poll expenses
MANILA, Philippines - The Bureau of Internal Revenue (BIR) is closely monitoring the campaign expenses and records of contributions of candidates in the May elections.
The BIR has issued a memorandum circular requiring national and local candidates and their political parties to present a receipt for every contribution they receive and all expenses incurred during the campaign.
The candidates were required to specify whether the contributions they received were in cash or in kind, the BIR said.With a letter of authority from the Commission on Elections (Comelec), BIR officials may visit the campaign headquarters of the candidates to inspect their records.
The original copy of the official receipt should be issued to the contributor or donor while a duplicate will be retained by the candidates or their political parties, according to the bureau.