BIR CONTINUES TO MISS COLLECTION TARGET

Collections of the Bureau of Internal Revenue (BIR) in March rose by nearly a tenth from a year ago but still fell short of the government’s goal despite aggressive campaigns against tax evaders. Government documents released Tuesday showed that BIR collections rose by 9.82 percent to P82.18 billion in March from the same period in 2013. However, this was lower than the target of P90.5 billion for the month.
The year-on-year growth in collections in March was better than the 5.18-percent increase recorded in February. Data released earlier this week showed the country’s budget shortfall in the first two months of the year rose 40 percent to P43.9 billion as the government increased spending for reconstruction efforts in Visayas. This month’s collection target has been set at P176.51 billion, higher than last April’s collection goal of P142.7 billion. Collections in April are expected to be the highest for any month this year because of the April 15 deadline for many tax payments. READ MORE...

ALSO: BIR trains sights on Makati lawyers

The Bureau of Internal Revenue (BIR) is now training its sights on lawyers who have not been paying the right taxes. The move is part of the bureau’s name and shame campaign aimed at increasing tax compliance of professional and self-employed individuals. In the government’s latest TaxWatch advertisement, the BIR noted that only a little more than half of Makati-based lawyers – only 451 of the total 840 – filed their income tax returns in 2012. About 67 or 19.9 percent of the registered Makati lawyers declared income taxes amounting to less than P27,360 or the income tax of a public school teacher earning P18,549 a month. Next to zero, the lowest declared income tax was P329, the BIR said. A certain lawyer with a gross income of P1.327 million in 2012 declared only P2,975 in income tax due, way below the P27,360 income tax that is automatically withheld from a public school teacher’s monthly salary. A public school teacher earns P222,588 annually, based on the BIR’s integrated tax system.

ALSO: Kim Henares needs a reprimand, says Cayetano (Flashing Pacquiao tax records in public)

Instead of defending Revenue Commissioner Kim Henares, Malacañang should reprimand her for “publicly flashing” world boxing champion Manny Pacquiao’s tax records, a senator said on Wednesday. While Filipinos here and abroad were unanimous in hailing Pacquiao’s recent victory over Timothy Bradley, Senate Majority Leader Alan Peter Cayetano lamented that the Bureau of Internal Revenue (BIR) here “seems to be more eager in publicly flashing his tax scorecards.” “Hindi naman po yata tamang i-demonize natin si Manny na walang ginawa kung hindi maghatid ng karangalan at kasiyahan sa ating bansa at sa lahat ng Pilipino sa buong mundo,” said Cayetano, who has publicly declared his intention to run for president in 2016. (I don’t think it’s right to demonize Manny, who has done nothing but bring honor to our country and the entire Filipinos throughout the world.) “I understand the BIR’s role and mission. Although tax collection is unpopular, it is necessary. But don’t destroy the very few things that make Filipinos unite and make us forget the calamities, problems and harshness of life, even if just for a few hours or a day,” he said. Cayetano said Pacquiao should not be given a special treatment but he should not be crucified either publicly. “Don’t be overacting, or Kulang sa Pansin,” said the senator. Cayetano then trained his guns at Malacañang for quickly defending its appointees.READ MORE...

(ALSO) Henares to Pacquiao: No need to pay taxes in PH if...

Boxing champ Manny Pacquiao may have won and reclaimed the crown but he may sorely lose financially to the tax bureau. Bureau of Internal Revenue Commissioner Kim Henares said technically Pacquiao may not need to pay income tax from his $20 million fight purse if he submits proper documentation to prove that he paid the US Internal Revenue Service 40% income tax. Henares explained the Philippines has a maximum income tax rate of 32%, so if he paid 40% in the US, he does not need to pay any tax in the Philippines, as far as the $20 million purse is concerned. Henares said the documentation proving Pacquiao paid taxes in the US must be certified by the Philippine Consular Office to make it official. In as far as Pacquiao's income from pay-per-view (PPV) and endorsements is concerned, the same applies for the income tax component. This means if he pays US taxes, he must present proof that it went through the certification of the consular office of the Philppines in the US. The difference is that endorsements and pay-per-view have 12% value added tax. If the endorsements and pay-per-view income emanate from the Philippines, the 32% income tax and 12% VAT will have to be paid to the BIR where Pacquiao has until April 15, 2015 to pay. When asked to comment on the common sentiments of ordinary people that Pacquiao has to take all the punches to earn money and honor for the country and yet BIR is running after him, Henares said: "Wala namang akong sinabing magpabugbog sya e... Everyone makes a choice, he wants to be a boxer... Binayaran naman siya ng $20million e."

ALSO: After Pacquiao, BIR chief Henares runs after boxing fans

Revenue commissioner Kim Henares has another target after bugging welterweight champion Manny Pacquiao about his undeclared tax liabilities – the boxing champion’s fans. This as the Bureau of Internal Revenue (BIR) chief claimed even the gambling income among bettors during boxing bouts should be taxed. Gambling money under the National Internal Revenue Code is considered taxable. It’s just a matter of enforcing it, Henares said in a phone interview with INQUIRER.net on Tuesday. “That’s the law… All gambling wins whether legal or illegal are taxable,” Henares said, when asked if the law even includes bettors during the boxing fights of Pacquiao. Henares said it may be difficult to enforce the law as there are no receipts issued for gambling spoils. “It’s the law. If you’re asking me the legal, I’m answering you legally,” she said. Henares said the revenue-collecting body may only clamp down on bettors not paying their taxes through lifestyle checks. Pacquiao has been the latest target of Henares after the boxing champion allegedly failed to pay over P2.2 billion in tax from his winnings in 2008 and 2009. The revenue commissioner remained persistent on Pacquiao to declare his income even after his latest victory against American boxer Timothy Bradley. THIS IS THE FULL REPORT.

EARLIER NEWS: PACMAN VS. TAXMAN: INTERNAL REVENUE CHIEF FLYING TO LAS VEGAS TO PERSONALLY COLLECT TAXES FROM PACQUIAO

The Commissioner of the Philippines’ Bureau of Internal Revenue (BIR) is flying to Las Vegas today to personally collect taxes on Manny Pacquiao’s earnings from the latter’s latest championship fight. Pacquiao on Saturday regained the WBO welterweight title from American Timothy Bradley. Pacquiao, who won by a unanimous decision, is expected to pocket some $20 Million in prize money, in addition to an unspecified percentage of receipts from Pay Per View’s cable coverage of the event. In recent months, Commissioner Kim Henares has been after Pacquiao and other high-profile celebrities in what many believe is her personal crusade to prevent her tax agency from bankruptcy. She believes her policy of going after the “big guns” will salvage the BIR from total collapse. In a statement made to reporters at the Departure VIP Lounge of the Ninoy Aquino International Airport, Henares said she wanted to witness first hand how much the boxing promoter will give to Pacquiao as his prize money. She plans to demand immediate payment of taxes from Pacquiao while she is in Las Vegas. Henares admitted that her trip to Las Vegas is funded by taxpayer money but insisted that the expense is well worth the tax that will be collected from Pacquiao.THIS IS THE FULL REPORT.


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BIR continues to miss collection target

Year-on-year, revenues in March rose 9.82% to P82.18B


Collections of the Bureau of Internal Revenue (BIR) in March rose by nearly a tenth from a year ago but still fell short of the government’s goal despite aggressive campaigns against tax evaders. INQUIRER PHOTO / RICHARD A. REYES

MANILA, APRIL 21, 2014 (INQUIRER) By Paolo G. Montecillo - Collections of the Bureau of Internal Revenue (BIR) in March rose by nearly a tenth from a year ago but still fell short of the government’s goal despite aggressive campaigns against tax evaders.

Government documents released Tuesday showed that BIR collections rose by 9.82 percent to P82.18 billion in March from the same period in 2013. However, this was lower than the target of P90.5 billion for the month.

The year-on-year growth in collections in March was better than the 5.18-percent increase recorded in February.

Data released earlier this week showed the country’s budget shortfall in the first two months of the year rose 40 percent to P43.9 billion as the government increased spending for reconstruction efforts in Visayas.

This month’s collection target has been set at P176.51 billion, higher than last April’s collection goal of P142.7 billion.

Collections in April are expected to be the highest for any month this year because of the April 15 deadline for many tax payments.

In a bid to boost collections, the government launched several public information campaigns to encourage small businesses and self-employed individuals to declare their proper income and pay the corresponding taxes.

Among these were the Department of Finance’s “Tax Watch” shame campaign launched last July. This involves the weekly publication of lists of individual and corporate taxpayers in various industries.

Tax Watch’s goal is to show the public who among self-employed individuals and companies pay taxes disproportionately smaller than the size of their wealth.

For March 2014, collections from BIR operations amounted to P78.91 billion, P6.95 billion or 9.66-percent more than collections made in March 2013. Collections from non-BIR operations amounted to P3.27 billion, P400.85 million or 13.98-percent up year-on-year.

The BIR said collections of regional offices totaled P31.79 billion, or P2.9 billion or 10.03 percent more than the collections made in March 2013, continuing with the previous year’s trend of double-digit growth registered by the regional offices.

Collections of the Large Taxpayer Service (LTS) amounted to P47.12 billion, P4.05 billion or 9.41-percent more than collections made in March of last year.

BIR trains sights on Makati lawyers By Zinnia Dela Peña (The Philippine Star) | Updated April 17, 2014 - 12:00am 2 5 googleplus0 0

MANILA, Philippines - The Bureau of Internal Revenue (BIR) is now training its sights on lawyers who have not been paying the right taxes.

The move is part of the bureau’s name and shame campaign aimed at increasing tax compliance of professional and self-employed individuals.

In the government’s latest TaxWatch advertisement, the BIR noted that only a little more than half of Makati-based lawyers – only 451 of the total 840 – filed their income tax returns in 2012.

About 67 or 19.9 percent of the registered Makati lawyers declared income taxes amounting to less than P27,360 or the income tax of a public school teacher earning P18,549 a month.

Next to zero, the lowest declared income tax was P329, the BIR said.

A certain lawyer with a gross income of P1.327 million in 2012 declared only P2,975 in income tax due, way below the P27,360 income tax that is automatically withheld from a public school teacher’s monthly salary.

A public school teacher earns P222,588 annually, based on the BIR’s integrated tax system.

“When you don’t pay your taxes, you’re a burden to those who do,” the ad said.

The government estimates that some P400 billion is lost each year to tax evasion. The amount is equivalent to four percent of gross domestic product.

The BIR has ramped up its audit and monitoring capacity to compel professionals and self-employed individuals to pay their fair share.

Unfazed by criticisms, the BIR is vigorously pursuing its tax watch campaign, this time targeting professionals.

The government’s main tax collection agency earlier drew the ire of the medical care industry following the release of a series of ads portraying doctors as tax cheats.

One of the ads showed one doctor earning P1.07 million in income but only paying P7,424 in taxes as compared to more than P221,000 in annual taxes paid by a teacher.

While the agency’s name and shame campaign has boosted its tax collections, the BIR continues to miss its annual collection targets, although by a small percentage.

BIR commissioner Kim Henares, however, is confident that the agency would see a vast improvement in collections given its intensified campaign to run after tax evaders.

Tasked with collecting about two thirds of the government’s total revenues, the BIR aims to collect P1.46 trillion this year, P855.77 billion of which will come from taxes.

The BIR’s collections grew nearly 10 percent to P82.18 billion in March but these were still short of the P90.5-billion target it had set for the month.

Kim Henares needs a reprimand, says Cayetano By Maila Ager INQUIRER.net 3:52 pm | Wednesday, April 16th, 2014


Senate Majority Leader Alan Peter Cayetano. INQUIRER FILE PHOTO

MANILA, Philippines—Instead of defending Revenue Commissioner Kim Henares, Malacañang should reprimand her for “publicly flashing” world boxing champion Manny Pacquiao’s tax records, a senator said on Wednesday.

While Filipinos here and abroad were unanimous in hailing Pacquiao’s recent victory over Timothy Bradley, Senate Majority Leader Alan Peter Cayetano lamented that the Bureau of Internal Revenue (BIR) here “seems to be more eager in publicly flashing his tax scorecards.”

“Hindi naman po yata tamang i-demonize natin si Manny na walang ginawa kung hindi maghatid ng karangalan at kasiyahan sa ating bansa at sa lahat ng Pilipino sa buong mundo,” said Cayetano, who has publicly declared his intention to run for president in 2016.

(I don’t think it’s right to demonize Manny, who has done nothing but bring honor to our country and the entire Filipinos throughout the world.)

“I understand the BIR’s role and mission. Although tax collection is unpopular, it is necessary. But don’t destroy the very few things that make Filipinos unite and make us forget the calamities, problems and harshness of life, even if just for a few hours or a day,” he said.

Cayetano said Pacquiao should not be given a special treatment but he should not be crucified either publicly.
“Don’t be overacting, or Kulang sa Pansin,” said the senator.

Cayetano then trained his guns at Malacañang for quickly defending its appointees.

“A reprimand is in order. Being interviewed or asked by the media is not an excuse. The commissioner could have said ‘no comment,’ and reminded Manny privately of his obligations,” he said.

He was referring to Communications Secretary Herminio Coloma’s statement that Henares was just answering the media’s questions when she publicly discussed about Pacquiao’s tax liabilities shortly after his victory.

“Collect taxes. Do your job. But do it with respect and with dignity. That is the Filipino way. Even in collecting taxes,” Cayetano added.

FROM ABS-CBN

Henares to Pacquiao: No need to pay taxes in PH if... by Alvin Elchico, ABS-CBN News Posted at 04/14/2014 4:30 PM | Updated as of 04/15/2014 10:19 AM


Bureau of Internal Revenue Commissioner Kim Henares and Boxing champ Manny Pacquiao. (Composite Photo)

MANILA, Philippines - Boxing champ Manny Pacquiao may have won and reclaimed the crown but he may sorely lose financially to the tax bureau.

Bureau of Internal Revenue Commissioner Kim Henares said technically Pacquiao may not need to pay income tax from his $20 million fight purse if he submits proper documentation to prove that he paid the US Internal Revenue Service 40% income tax.

Henares explained the Philippines has a maximum income tax rate of 32%, so if he paid 40% in the US, he does not need to pay any tax in the Philippines, as far as the $20 million purse is concerned.

Henares said the documentation proving Pacquiao paid taxes in the US must be certified by the Philippine Consular Office to make it official.

In as far as Pacquiao's income from pay-per-view (PPV) and endorsements is concerned, the same applies for the income tax component. This means if he pays US taxes, he must present proof that it went through the certification of the consular office of the Philppines in the US.

The difference is that endorsements and pay-per-view have 12% value added tax. If the endorsements and pay-per-view income emanate from the Philippines, the 32% income tax and 12% VAT will have to be paid to the BIR where Pacquiao has until April 15, 2015 to pay.

When asked to comment on the common sentiments of ordinary people that Pacquiao has to take all the punches to earn money and honor for the country and yet BIR is running after him, Henares said: "Wala namang akong sinabing magpabugbog sya e... Everyone makes a choice, he wants to be a boxer... Binayaran naman siya ng $20million e."

According to Henares, on top of his tax dues for his fight last Sunday, Pacquiao has to settle his tax liability which as of April 2014 is already at P2.73 billion, as Pacquiao only paid P40 million VAT after he talked to the BIR a few months ago.

According to Henares, the amount will again incur 20% interest and 25% surcharge if not paid until April 2015.

If a settlement is reached, Henares said the longest extension for a staggered payment is only for a year. That's why she advised Pacqcuiao to get a loan from the bank if he intends to settle it soon, as banks impose lesser interest than the combined 25% and 20% interest and surcharge leveled by the tax bureau annually.

Meanwhile, Henares reiterated her call to file income tax on time as no extension will be given.

Even if it's just a day late, the 20% interest and 25% surcharge will be imposed, on a pro-rated basis.

Henares is hopeful that with the renewed campaign vs tax cheats, the BIR can reach its goal of collecting P1.456 trillion for 2014.

FROM THE INQUIRER

After Pacquiao, BIR chief Henares runs after boxing fans INQUIRER.net 8:13 pm | Tuesday, April 15th, 2014


BIR Commisioner Kim Henares INQUIRER FILE PHOTO

MANILA, Philippines—Revenue commissioner Kim Henares has another target after bugging welterweight champion Manny Pacquiao about his undeclared tax liabilities – the boxing champion’s fans. This as the Bureau of Internal Revenue (BIR) chief claimed even the gambling income among bettors during boxing bouts should be taxed.

Gambling money under the National Internal Revenue Code is considered taxable. It’s just a matter of enforcing it, Henares said in a phone interview with INQUIRER.net on Tuesday. “That’s the law… All gambling wins whether legal or illegal are taxable,” Henares said, when asked if the law even includes bettors during the boxing fights of Pacquiao.

Henares said it may be difficult to enforce the law as there are no receipts issued for gambling spoils. “It’s the law. If you’re asking me the legal, I’m answering you legally,” she said.

Henares said the revenue-collecting body may only clamp down on bettors not paying their taxes through lifestyle checks.

Pacquiao has been the latest target of Henares after the boxing champion allegedly failed to pay over P2.2 billion in tax from his winnings in 2008 and 2009.

The revenue commissioner remained persistent on Pacquiao to declare his income even after his latest victory against American boxer Timothy Bradley.

FROM THE ADOBO CHRONICLE ONLINE

PACMAN VS. TAXMAN: INTERNAL REVENUE CHIEF FLYING TO LAS VEGAS TO PERSONALLY COLLECT TAXES FROM PACQUIAO By adobochron on April 14, 2014


Pacquiao and Henares

Manila, Philippines – The Commissioner of the Philippines’ Bureau of Internal Revenue (BIR) is flying to Las Vegas today to personally collect taxes on Manny Pacquiao’s earnings from the latter’s latest championship fight. Pacquiao on Saturday regained the WBO welterweight title from American Timothy Bradley. Pacquiao, who won by a unanimous decision, is expected to pocket some $20 Million in prize money, in addition to an unspecified percentage of receipts from Pay Per View’s cable coverage of the event.

In recent months, Commissioner Kim Henares has been after Pacquiao and other high-profile celebrities in what many believe is her personal crusade to prevent her tax agency from bankruptcy. She believes her policy of going after the “big guns” will salvage the BIR from total collapse.

In a statement made to reporters at the Departure VIP Lounge of the Ninoy Aquino International Airport, Henares said she wanted to witness first hand how much the boxing promoter will give to Pacquiao as his prize money. She plans to demand immediate payment of taxes from Pacquiao while she is in Las Vegas.

Henares admitted that her trip to Las Vegas is funded by taxpayer money but insisted that the expense is well worth the tax that will be collected from Pacquiao.


Chief News Editor: Sol Jose Vanzi

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