400,000 out of 1.8 M taxpayers filed ITRs in 2013

MANILA, Philippines - Bureau of Internal Revenue (BIR) Commissioner Kim Henares revealed on Thursday that only one out of every four registered self-employed professionals and sole-proprietors has filed income tax return (ITR) and paid taxes to the government.

Henares told reporters at a press conference in Quezon City that only around 400,000 out of over 1.8 million – or around 24 percent – of those who were registered in the agency filed their ITRs last year.

“We even have a problem there because we don’t know if there are only 1.8 million professionals and sole proprietors in the country. We also don’t know if those who filed paid correctly,” she said.

Henares reminded the public that the deadline for filing of ITRs is on April 15. She said their offices would close at 5 p.m., but would entertain those still in line even after office hours.

“If you are late, you still have to file. Of course, you will have a surcharge of 25 percent and interest of 20 percent per annum. But that’s better than if you did not file and we catch you because there is a jail term,” she said.

“It’s better to file late rather than not at all, and it’s always better to file (on time) and pay correctly,” she added.

Henares said that their P1.456-trillion target collection this year is based on statistics that only one out of four registered professionals and sole proprietors pay taxes.

“It can easily double if all of us should do our duties and our obligations,” she said.

“Can you just imagine how many roads we can build? How many schools we can build? How many hospitals we can build and maintain? And maybe our doctors need not go abroad. They can stay here because we can give them higher salary,” she said.

Nothing against doctors

During the press conference, Henares maintained that she has nothing against doctors amid criticisms of the agency’s tax campaign advertisement last month.

“Basically, what my job entails is really requiring everyone to pay the right tax, whoever they may be. They may be a relative of mine, a friend of mine. All of us should pay the right taxes,” she said.

Earlier, different medical professionals – including outgoing Philippine Medical Association (PMA) president Leo Olarte – denounced the BIR advertisement showing a teacher carrying a doctor on her shoulders.

The BIR has since filed a tax evasion case against Olarte before the Department of Justice.

But Henares said they have also come out with similar advertisements depicting online sellers and accountants.

“I treat everyone similarly. If you pay the right taxes, I don’t think you would feel antagonistic,” she said.

Incoming PMA president Minerva Calimag, meanwhile, said the issue is now water under the bridge.

Calimag said they are currently working with the BIR to strengthen the campaign to inform doctors about their tax obligations.

New BIR rule questioned

Meanwhile, the country’s mandatory organization of lawyers has questioned before the Supreme Court (SC) the new regulation of the BIR imposing additional requirements for their registration.

In a 36-page petition for prohibition and mandamus, the Integrated Bar of the Philippines (IBP) asked the high court to issue a temporary restraining order (TRO) enjoining the BIR from implementing its Regulation No. 4-2014 and to also declare it unconstitutional. – With Edu Punay