Quantcast
Latest Stories

BIR targets erring lawyers, doctors

Professionals paying less than P200K face audit

By

The taxman is closely watching the self-employed and professionals who are paying taxes at “ridiculously low” amounts as well as those who do not pay at all nor even register with the Bureau of Internal Revenue.

Internal Revenue Commissioner Kim S. Henares on Monday said she has signed an order that put professionals who pay less than P200,000 in taxes a year on top of the list of candidates for an audit.

In a briefing, Henares also said the BIR was considering to file charges against lawyers, doctors, dentists and others practicing a profession who pay less than P30,000 in taxes a year.

She said the BIR was embarking on a renewed campaign against professionals and would assert itself as a law enforcement agency and shed its image as a mere customer relations outfit.

Henares explained that underlying this so-called war against professional tax cheats was the aim of widening the tax base—specifically raising the number of those who actually pay taxes.

BIR documents showed that there were 1.8 million professionals registered with the agency, but only about 403,000 of them pay taxes. For those who do pay taxes, they turn in an average of only P33,000 a year, an amount which Finance Secretary Cesar V. Purisima described as “a joke” and “ridiculous.”

Purisima said the government wanted to bring the average inflow from professionals to P200,000 a year.

“Increasing the average to P200,000 per (self-employed) filer is reasonable,” he said, citing an estimate of yearly expenses for a family of four with two children in school. He said this family spent some P870,000 yearly on recurring expenses, which cover food, utilities, fuel for a vehicle, and tuition and pocket money for the children.

This “conservative” estimate also factored in that the family of a professional owned a sports utility vehicle worth about P1.8 million and a house worth P8.5 million.

With such purchases and properties, the family owed the government about P211,000 in tax.

However, Purisima said that during a recent tour of the BIR’s regional offices, he found out that some lawyers—for example—paid less than P1,000 for a year’s tax.

“Some lawyers in Bacolod paid P200 an entire year,” he said. “Some doctors and dentists in Mindoro paid just P429.”

Further, Henares said shirking tax obligations was also prevalent among self-employed business owners.

“In our survey of a prominent business association with some 200 members, we discovered that 23 percent of them had no TIN (tax identification number) and half did not file returns,” she said.

This also showed, Henares added, that the target of making all of 1.8 million self-employed and professionals registered with the BIR was conservative.

Citing data from other government agencies, she said the Social Security System and the Professional Regulation Commission (PRC) both counted two million self-employed and professionals while the Department of Trade and Industry (DTI) listed 2.1 million. The National Statistics Office, through its Family Income and Expenditure Survey conducted every three years, counted 2.9 million.

“We are comparing lists with the local governments, DTI and PRC and we are prioritizing the audit of those with ridiculously low income tax payments,” Henares said.

“Pay the correct taxes now so you can spare yourself from criminal charges and contribute to our country’s progress,” she added.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: BIR , Business , professionals , taxes

  • tea tinio

    maybe we should burn kim henares for not taxing the members of political dynasties. please check their assets. its bigger than the sum of all doctors, lawyers etc.

    start with the cedula.

  • WeAry_Bat

    Tax exemptions for doctors and nurses? I don’t think we are that rich a country. Do that, and a number of occupations will cry out for a similar exemption, like dentists. Besides, I do not have a doubt they do not give receipts sometimes. I should know, every year I always meet them for this or that something which comes with middle age.

  • im_not_convinced

    this is the right way to go. chase after the the tax cheats and improve collection instead of inventing more and more taxes which only law abiding folks pay. we have enough taxes, it’s the proper collection that is lacking.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Complex health care system for California’s elderly and poor explained
  • Malang the croc must regain strength before return to swamp, says mayor
  • Palace: Lacson’s version of Napoles testimony to be evaluated
  • Scientists eye iceberg bigger than Guam
  • Drilon: I’m not on Napoles’ list
  • Sports

  • Promoters Dela Hoya, Arum in talks for Pacquiao-Alvarez—report
  • Benzema guides Madrid to 1-0 win over Bayern
  • Suns’ Goran Dragic win NBA’s Most Improved Player award
  • Heat go up 2-0, hold off Bobcats 101-97
  • Ronaldo shakes off injury fears to play Bayern
  • Lifestyle

  • Gongs and southern dances star in a workshop at San Francisco Bayanihan Center
  • This woman ate what?
  • Photos explore dynamics of youths’ sexual identity
  • 12th Philippine Food Expo set at the World Trade Center
  • No tourist draw, Malang the croc will remain wild
  • Entertainment

  • Smithsonian wants photos, videos for ‘Day in the Life of Asian Pacific Americans’
  • What Garcia Marquez left behind
  • Has Ai Ai fallen deeply with ‘sireno?’
  • Sony developing live-action Barbie comedy
  • California court won’t review Jackson doctor case
  • Business

  • How ‘one percent’ economic elite was uncovered
  • Facebook profits triple as mobile soars
  • Insular Honors Sales Performers at Testimonial Rites
  • Apple increases stock buyback, will split stock
  • Cost-recovery provisions for affected gencos urged
  • Technology

  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • Obama to visit Filipino soldiers in Fort Bonifacio
  • Fil-Am youth conferences unite under one theme
  • Embassy advisory: Filipinos still need visas to enter US
  • No travel restriction to Mideast, DFA clarifies
  • PH-HK relations repaired, but families of victims still being courted
  • Marketplace