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New BIR rule on receipts raises uproar

Amid mounting complaints, groups seek postponement

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Private enterprises in the country are in an uproar over a directive from the Bureau of Internal Revenue for them to issue new receipts starting July 1 and for the steep penalties to be imposed on those that will fail to comply.

Complainants criticized the timing of the directive, embodied in Revenue Regulation 18-2012 published last January, which they said was hasty and could cause losses especially for small firms.

The controversial revenue regulation states that all businesses operating in the country should have applied for a new authority to print (ATP) receipts with the BIR not later than April 30 and should issue and use the new set of receipts starting July 1.

Moreover, businesses are required to transact only with a new list of BIR-accredited printing companies. BIR employees and their relatives are disqualified from offering printing services.

Those who failed to apply for an ATP last April 30 faced a penalty of P1,000, while those who will fail to issue new receipts starting July 1 will be slapped a penalty that can go as high as P50,000.

“I am very angry. The penalty of P50,000 is so steep and is already equivalent to a few months worth of net income for our small business. We did not even know about the new BIR directive until a few days ago,” an entrepreneur, who declined to be identified, told the Inquirer when asked to comment on the new BIR ruling. The entrepreneur and her husband run a small printing business.

She said that when her employee went to a BIR branch last April to pay income tax, none of the BIR staff mentioned about the new ruling on receipts.

Sergio Ortiz-Luis, president of the Philippine Exporters Confederation (Philexport) and an officer of the Philippine Chamber of Commerce and Industry (PCCI), said the head offices of the two business groups had been bombarded with calls from various members all over the country inquiring about the new BIR ruling and asking if a request could be made for the BIR to delay the implementation of the directive on receipts.

Ortiz-Luis said majority of businesses in the country were not prepared for the implementation of RR 18-2012.

“We asked the BIR for more time, but they [tax officials] would not listen,” Ortiz-Luis said. “There are a lot of businesses that want to cooperate with the BIR and pay the right taxes. But why can’t they [BIR officials] be more understanding.”

Ortiz-Luis said six months were not enough for the BIR to prepare the entire business community in the country for the implementation of a new directive. He said the BIR should have allotted one to two years before implementing a regulation that requires all enterprises in the country to apply for an ATP and to issue new sets of receipts to replace the old ones.

He said members of Philexport and PCCI acknowledged the reason behind the BIR regulation. However, he said the government should be considerate and take into account the needs of businesses in order to be viable.

The BIR issued RR 18-2012 with the objective of curbing tax evasion and smuggling.

It said the regulation was a necessary reform to address serious problems, including the proliferation of fake receipts that are being sold to tax evaders and smugglers, and unscrupulous acts by some BIR personnel whose relatives used to own receipt printers previously accredited by the BIR. The BIR said it was getting complaints that these personnel were giving taxpayers a hard time securing an ATP unless they tapped these employees’ printing services.

Internal Revenue Commissioner Kim Henares said in a statement issued last week that the revenue regulation would be implemented as scheduled next month.

“The complaints against the new regulations are without any basis. We believe that six months is enough preparation for everyone to comply with such requirement,” Henares said.

Meantime, Ortiz-Luis said some businesses might go to court to formally complain about the timing of the BIR ruling.

“Some businesses may be forced to go to court, but this should not be necessary if the BIR would be a bit considerate. We [government and business sector] do not need to hurt each other,” Ortiz-Luis said.


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  • Cano Manuel

    All they have to do is abide the law and the rules and regulations on taxation, pay the right amount of taxes and they need not worry of the penalty. Is that really so much to do?

    A six-month notice is so long for business establishments to prepare. Why the fuss?

    I think those who complain are doing shady business practices.

  • Philip_TM_Garcia

    I just signed a movement paper, KIM HENARES will be sued in her personal capacity on this ATP issue. It’s true in january this year she issued a guideline… but such guideline is ambiguous… it states the deadline is sixty-days before expiry of your ATP…

    in MAY this year, Kim Henares interpreted her guideline as sixty-days before June 30th, day before implementation of new OR/Invoices.
    ANG TANONG, BAKIT PA BA SASABIHIN SIXTY-DAYS BEFORE EXPIRY OF YOUR ATP?…. kung ang meaning pala is deadline is APRIL 30TH…..

    This kind of hocus-pocus ni KIM totals billions of pesos…. of penalty earnings….

    But the source is an unjust basis….

    OUR LAWYERS BELIEVE THE STATE CANNOT AND MUST NOT EARN THRU HOCUS-POCUS from its sovereign.

    KIM HENARES acted not on her official capacity… OUR LAWYERS WILL PROVE IT.

    SHE WILL BE SUED IN HER PERSONAL CAPACITY when she steps down as CIR.

  • sanjuan683

    Walang talaga maasahan sa ahensya ng gobierno puro oppressive. LOL

  • sanjuan683

    Hindi malulutas yan fake receipt dahil nariyan ang mga walanghiya sa loob ng BIR. Bata pa ako kalakaran na yan corruption sa BIR. Kahit sinong commissioner ang ilagay mo diyan corrupt pa rin. COMMISIONER MAGKANO ANG COMMISSION MO SA PRINTING PRESS? Walang naman matino ahensya sa gobierno ng Pinas.

  • Harold Brylle Butac

    Maiba nga bakit ang BIR pag di ka makabayad sa kanila may penalties, how about pag sila ang di makabayad?

    • sanjuan683

      One sided itong BIR pahirap sa taong bayan.

      • Harold Brylle Butac

        yeah, ilang milyon ung nakukulekta nila sa mga tax payers, tapos they cant pay sa kanilang mga supplier..dapat balanse para si taxpayer may pambayad din sa kanila. Sabi nga ng mga kilala q isa ang BIR sa napakatagal na magbayad na Government Institution.

  • eight_log

    We are in the age of electronics … why does the BIR still require receipts to be printed when every transaction can be recorded in the computer? Require businesses to have computerized cash registers instead of asking them to print receipts … in the end it will be cheaper and less prone to cheating by business owners and also less intervention by BIR personnel!~!!! Give tax holiday to small sarisari stores and the likes!!!!

  • Mario_Garcia

    It said the regulation was a necessary reform to address serious problems, including the proliferation of fake receipts that are being sold to tax evaders and smugglers, and unscrupulous acts by some BIR personnel whose relatives used to own receipt printers previously accredited by the BIR. The BIR said it was getting complaints that these personnel were giving taxpayers a hard time securing an ATP unless they tapped these employees’ printing services.

    THEY ACKNOWLEDGED THE PROBLEM AND THE PROBLEM IS WITH THE BIR PERSONNEL, WHY NOT CLEAN YOUR OWN HOUSE FIRST BEFORE SNIFFING AROUND ANOTHER’S BACKYARD.

  • Mario_Garcia

    The BIR was the one authorizing the printing of the receipts and now they can’t seem to control them, why? Now they want us to print the receipts once again, they thought it is an easy thing to do – to throw away newly printed receipts. after this, what next? I bet there’s more to come like change the COR to a gold plated plaque because the paper ones can easily be faked in Recto. Crazy Henares….

  • Mario_Garcia

    Kim Henares should pay for the remaining unused receipts that we are required to surrender. It is only fair the the government pays the taxpayers for the things taken from the taxpayers. It is the government’s responsibility to collect taxes effectively and efficiently and not at the expense of the taxpayers. If government can’t collect taxes properly and efficiently then it has to abdicate this function and let the private sector do this function.

  • windstream

    I think the BIR should have let the businesses continue use of the old printed receipts until stocks have been exhausted then mandate them to use the new receipt format thereafter.

    • sanjuan683

      Yan ang tama ubusin muna yun old resibo. Sira ba ulo mo BIR Kim? Pinagkagatusan ang mga old receipt ngayon babaliwain mo, ano gagawin na lang pangbalot ng tinapa at pamunas ng wetpu kapag eebak. Mag-isip ka naman? Pahirap kang talaga sa mga negosyante. Sa totoo lang very oppressive ito bagong ninyo procedure



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