_________________________________________________
.

Finance chief’s tax hike scheme: Soak the pros

by Elaine R. Alanguilan
[ manilastandardtoday.com ] February 1, 2012

FINANCE Secretary Cesar Purisima has ordered Internal Revenue to step up measures to collect more income tax from professionals and self-employed people this year.

“The income tax payments of the professionals should drastically increase by year-end,” Purisima said at the sidelines of the Tax Management Association of the Philippines meeting Tuesday night.

He said he wanted to see the tax payments of professionals to average P100,000 by the end of this year from last year’s P5,600.

He said he was monitoring the income tax payments of professionals and self-employed people down to Internal Revenue’s regional district offices.

“We will continue to set ambitious goals in order for the [bureau] to reach its [revenue] goal],” Purisima said.

Internal Revenue has a revenue hurdle of P1.06 trillion this year from last year’s full-year target of P940 billion. It has yet to release the total amount it collected last year.

“If [Revenue Commissioner] Kim Henares reaches her target, she will be the first one to collect [revenues of] more than P1 trillion,” Purisima said.

Internal Revenue has already raised its target collection from professionals and other self-employed people to P222.28 billion for this year, an increase of 15 percent from last year’s projected revenue of P192.72 billion.

Income taxes from individuals account for more than 20 percent of Internal Revenue’s tax collection, and the bulk of it comes from salaried individuals whose income taxes are automatically withheld by their employers.

Purisima has said the incidence of tax evasion among professionals in the country is high, and that’s the reason Internal Revenue has been going after tax cheats more vigorously. Internal Revenue has been filing cases against professionals such as doctors and lawyers.

The Professional Regulation Commission lists some 3 million registered professionals, of which around 190,000 are high-earning doctors and lawyers. The rest are accountants, engineers, nurses and seafarers.
________________________________________________________________
KNOWING YOUR BIR REGULATIONS AND ISSUANCES

Revenue Regulations (RRs) are issuances signed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes

Revenue Memorandum Orders (RMOs) are issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.

Revenue Memorandum Rulings (RMRs) are rulings, opinions and interpretations of the Commissioner of Internal Revenue with respect to the provisions of the Tax Code and other tax laws, as applied to a specific set of facts, with or without established precedents, and which the Commissioner may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations. BIR Rulings, therefore, cannot contravene duly issued RMRs; otherwise, the Rulings are null and void ab initio

Revenue Memorandum Circular (RMCs) are issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.

Revenue Bulletins (RB) refer to periodic issuances, notices and official announcements of the Commissioner of Internal Revenue that consolidate the Bureau of Internal Revenue's position on certain specific issues of law or administration in relation to the provisions of the Tax Code, relevant tax laws and other issuances for the guidance of the public.

BIR Rulings are official position of the Bureau to queries raised by taxpayers and other stakeholders relative to clarification and interpretation of tax laws.
real estate central philippines
Copyright ©2008-2020