Quantcast
Latest Stories

BIR taps regulator in tax evasion drive

By

Internal Revenue Commissioner Kim Henares

Self-employed professionals will soon be required to submit income tax returns (ITRs) when they renew their licenses.

This was announced by the Bureau of Internal Revenue (BIR), which sought the assistance of the Professional Regulation Commission (PRC) in solving the long-standing issue of rampant tax evasion among self-employed lawyers, doctors, accountants and other professionals.

Under the measure, Internal Revenue Commissioner Kim Henares said the PRC would decline applications for a renewal of licenses submitted by professionals if they fail to submit ITRs. She said the move could significantly increase the number of registered taxpayer among the self-employed professionals and, in the process, curb tax evasion.

“We are closely coordinating with the PRC and this [requirement of ITR for renewal of licenses] will take place soon,” Henares told the Inquirer.

She added that PRC was one of the government agencies that the tax bureau was in discussion with in its drive to plug tax leakages.

Based on BIR records, Henares said that there were only about 500,000 self-employed professionals who were registered taxpayers. However, she noted that there were about 1.8 million self-employed professionals in the country based on records of the PRC and other sources.

Tax officials said many of the BIR-registered professionals even resorted to under-declaration of income to pay lower amounts of taxes.

Henares said that by making ITRs one of the requirements for a renewal of licenses, the self-employed professionals who were not yet registered with the BIR could finally come out and contribute to state coffers. Those who resort to under-declaration of income are also expected to rectify their tax payments.

Based on estimates from the Bureau of the Treasury, the government was losing an amount equivalent to 4 percent of the economy’s gross domestic product every year due to tax evasion and income under-declaration.


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 , income tax returns , self-employed professionals , tax evasion

  • Etude57

    What about unregistered (= illegal) companies? I know several illegal farms around me, one with 1000+ quails. No BIR sign, no number..Another one has a pig-farm. Another one runs a junkshop and pollutes the whole area. All on 300 square meters area in the middle of an urban area. (Malabon, Longos). Take a look here..



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

  • Sign maker to be nailed to cross for 28th time
  • 50 Quezon City cops each carry 30-kg crosses
  • AFP: Abu Sayyaf group, not MILF, target of Basilan operation
  • Massive infra spending set
  • DOJ to NBI: Arrest Cedric Lee, 4 others
  • Sports

  • Federer would skip tennis to be with wife, newborn
  • Manny Pacquiao in PBA? If so, he’ll wear No. 17
  • PSC sets Blu Girls US training
  • Power Pinoys settle for 7th place
  • Successful coaches to get raise
  • Lifestyle

  • Are your favorite malls open this Holy Week break?
  • Celebrate Easter Sunday at Buddha-Bar Manila
  • Moriones feast: A slow, steady transformation
  • Weaving ‘palaspas’ a tradition kept alive in Tayabas City
  • Finalists announced for best translated books
  • Entertainment

  • Why Lucky has not bought an engagement ring for Angel
  • Derek more private with new girlfriend
  • ‘Community’ star happy with return of show’s creator
  • Jealousy is kid stuff
  • Mommy-daughter adventure continues
  • Business

  • PH presses bid to keep rice import controls
  • PSEi continues to gain
  • Number of retrenched workers rose by 42% in ’13
  • PH seen to sustain rise in FDIs
  • Gov’t subsidies to state firms fell in first 2 months
  • Technology

  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Another reason to quit social media this Holy Week: your safety
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • First Fil-Am elected to Sierra Madre, Calif. city council
  • UC Irvine cultural night to dramatize clash of values in immigrant family
  • Filipino sweets and info served at UC Berkeley Spring Fest
  • Milpitas, California kids wrap up a successful run of ‘The Wiz’
  • Netizens welcome Japan’s visa-free travel plan
  • Marketplace