MANILA, Philippines - Unfazed by complaints from doctors that the Bureau of Internal Revenue is “harassing” them in its campaign against tax evasion, BIR Commissioner Kim Henares has disclosed that the agency may even conduct lifestyle checks on medical practitioners.
“Eventually we will get there. We will do that (lifestyle check),” Henares told a radio interview on Friday night.
She also disputed claims by some doctors that the BIR has singled them out in its campaign against tax evaders.
“We warned them for almost a year before we filed the cases,” Henares said.
She said that by conducting lifestyle checks, the BIR can determine if some individuals have attempted to evade or minimize tax payments even though they are earning more than enough.
Through their lavish lifestyles, Henares said the BIR will be able to get an idea of how much doctors are earning. Indicators of lavish lifestyles include frequent and expensive travels, acquiring posh properties such as real estate and motor vehicles.
In conducting lifestyle checks, the BIR uses public documents submitted to agencies such as the Bureau of Immigration, Land Transportation Office, Manila Electric Co. and even credit card firms.
These documents provide information about the taxpayers’ travel in and out of the country as well as properties and whether these are commensurate to his or her declared sources of income.
Last September, the BIR made true its promise that it would be tightening the noose on self-employed individuals such as doctors, accountants and engineers.
The BIR had filed a case against a husband and wife team of doctors who operate several medical clinics, including one at the Medical Plaza building in Makati City.
Henares reminded the public, including self-employed professionals such as doctors and lawyers, that they are required to issue receipts under existing laws.
The BIR, which is tasked to collect P940 billion in revenues this year, believes that the filing of tax evasion charges would send a strong signal to delinquent taxpayers that the agency is serious in its fight against tax evaders.