BIR tightens grip on erring taxpayers

MANILA, Philippines - Tax evaders can expect stricter enforcement measures as the Bureau of Internal Revenue is tightening the grip on non-compliance.

As the deadline on the use of old receipts expired last Oct. 31, the BIR is now conducting an inventory of businesses and professionals that applied for an authority to print (ATP) new receipts.

The BIR has directed all its directors across the country to submit a list of ATP filers.  The move came in the wake of reports that a lot of business establishments, doctors, lawyers and other professionals were still issuing old receipts in violation of its Revenue Regulation 18-2012.

Based on the new rules, enterprises that would still use old receipts even after Oct. 31, would be slapped with the same penalties imposed on those that do not issue receipts to customers.

The BIR would impose a fine of P50,000 for the first offense.

For subsequent violations, the BIR would close down the business and file tax evasion charges.

The regulation was issued by the BIR last year to address the problem on rampant use of fake receipts by tax evaders and smugglers as well as to put a stop to some BIR workers’ practice of forcing taxpayers to tap the printing services offered by their relatives.

Under the new rules, relatives of BIR personnel, up to fourth degree consanguinity, are prohibited from offering receipt-printing services.

About 2,250 printing firms had been accredited by the BIR to print new receipts. Of these, 585 are operating in Metro Manila.