BIR to step up audit of cash registers

As it seeks to shore up revenues, the Bureau of Internal Revenue (BIR) will intensify its audit of cash registers as well as point-of-sale (POS) machines at business establishments.

The country’s biggest tax-collection agency issued Revenue Memorandum Order 15-2018, which contained the guidelines, policies and procedures as it implements the post-evaluation of cash register machines, POS machines as well as other sales receipting system software.

In the order, Internal Revenue chief Caesar R. Dulay noted that this initiative would determine “if taxpayers have declared the correct amount of sales and paid the corresponding internal revenue taxes.”

The audit will also “validate taxpayers’ compliance on the invoicing as well as e-Sales reporting requirements under existing issuances relative to the use of cash register machines, POS machines and other sales receipting system software,” Dulay added.

It will also allow the BIR to gather useful data when it investigates the income and value-added tax liabilities of alleged tax cheats, Dulay said.

Also, the BIR wanted to “raise awareness that the use of sales suppression software and/or devices is strictly prohibited,” according to Dulay.

Under RMO 15-2018, revenue officers can start the post-evaluation process by issuing a mission order as well as a letter to the taxpayer.

The BIR mandated that “each machine being used for business operations must be registered with the bureau and must have a permit to use that must be conspicuously attached thereto.”

For those found with irregularities in using cash registers and POS machines, the BIR is required to come out with an initial report of committed violations, and later on a final memorandum report, which “covers the summary of committed violations, the result of the data matching from the concerned revenue officers/team heads/coordinators and the recommendation for review and approval of the chairperson which shall serve as basis for issuance of notice to taxpayer and schedule of findings on post evaluation and compliance validation and/or further enforcement activity.”