LOGO BUREAU OF INTERNAL REVENUE Revenue Region 19

LOGO BUREAU OF INTERNAL REVENUE Revenue Region 19, Davao City Bolton Ext. , Davao City

Our Goal LOGO 2011 Goal: P 9. 074 B 4. 57% increase or P 397 M 2010 Goal: P 8. 677 B 2

As of Nov. 30, 2011 Our Goal for 2011 Our Collection as of 11/30/11 Target for the remaining period LOGO P 9, 074, 576, 000 8, 307, 585, 172 P 766, 990, 828 3

Our Collection Performance LOGO (Jan. to Nov. 2011 in Billion Pesos) 4

LOGO PRIORITY PROGRAMS OF BIR RR 19 -DAVAO CITY 5

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RUN AFTER TAX EVADERS LOGO § The Bureau had recently realized that maintaining public confidence in the fairness of the tax system is vital to effective tax administration. § By investigating potential violations of the Tax Code and prosecuting tax offenders, the taxpaying public would recognize and be aware that the BIR is committed to ensure that everyone is paying their fair share of taxes. 7

RUN AFTER TAX EVADERS LOGO v RATE – instituted in March 2005 in support of BIR’s mandate: ü to investigate criminal violations of the NIRC and ü to prosecute such cases v Objectives: ü To deter, to the greatest possible degree, tax evasion practices ü To encourage voluntary compliance with the internal revenue tax laws 8

RUN AFTER TAX EVADERS LOGO v To date, Com. Kim Henares has filed with DOJ a total of 83 RATE cases as of Dec. 8, 2011 against businessmen & prominent personalities. 9

RUN AFTER TAX EVADERS LOGO v 1 RATE case has been filed against a plastic manufacturer in Tagum City (1 st RATE case filed outside Metro Manila); v another RATE case has also been filed against a rice dealer in Davao City, including her Accountant 10

LOGO OPLAN KANDADO RMO NO. 3 -2009 dated January 15, 2009 11

OPLAN KANDADO LOGO v an initiative to strengthen BIR’s imposition of prescribed administrative sanctions for noncompliance of the ff: • issuance of receipts • filing of returns • declaration of taxable transactions • taxpayer registration, and • paying correct amount of taxes 12

OPLAN KANDADO LOGO GROUNDS FOR SUSPENSION OR TEMPORARY CLOSURE OF BUSINESS § § Failure to issue receipts or invoices by a VATregistered or registrable taxpayer Failure to file a VAT return Understatement of taxable sales or receipts by 30% or more of the correct amount thereof in the case of a VAT-registered or registrable taxpayer Failure to register 13

LOGO BENCHMARKING (RMO 4 -2006) 14

LOGO BENCHMARKING § the process of determining the performance level of taxpayer in a given line of industry § the setting of a standard in determining taxpayers’ performance/ compliance. § used as reference point in a tax survey 15

LOGO MONITORING OF SUMMARY LIST OF SALES AND PURCHASES (SLS/P) RMO 56 -2010/RMC 60 -2010 16

Summary List of Sales/Purchases LOGO v Who are required to submit SLS? Ø All persons liable for VAT (manufacturers/wholesalers/serviceproviders, etc. ) with quarterly total sales/receipts (net of VAT) exceeding P 2. 5 M v Who are required to submit SLP? Ø All persons liable for VAT (manufacturers/wholesalers/service-providers, etc. ) with quarterly total purchases (net of VAT) exceeding P 1 M 17

LOGO Audit of Tax Returns RMO No. 4 -2011 dated Feb. 3, 2011 18

AUDIT LOGO v Issuance of Letters of Authority for Taxable Years 2009 and 2010 giving priority to taxpayers who render professional services v Issuance of Letter Notices as a result of the cross-matching operation by the BIRNational Office 19

LOGO ACCREDITATION OF TAX AGENTS AND PRACTITIONERS RR 11 -2006 as amended by RR 4 -2010 and RR 14 -2010 20

Where to apply LOGO v Submit to the Revenue Region Accreditation Board (RRAB) having jurisdiction over the place of his/its principal residence or place of business. § duly accomplished Application Form § documentary requirements 21

Effects of Accreditation LOGO v Only those Tax Agents/Practitioners who were issued with Certificate of Accreditation or ID shall be allowed to represent a taxpayer in the BIR 22

LOGO Revenue Regulations 18 -2011 Providing Penalties for Violation of the Requirement that Output Tax on the Sale of Goods and Services Should be Separately Indicated in the Sales Invoice or Official Receipt 23

Proper Invoicing and Receipting of Output Tax LOGO q Revenue Regulations 18 -2011 • Reiterates Sec. 237 of the Tax Code that VATregistered taxpayers should separately bill the VAT. • The amount shall be shown as a separate item in the invoice or receipt 24

Proper Invoicing and Receipting of Output Tax LOGO Ex: If the amount charged is P 560. 00, it shall be presented in the following manner: Professional Fee (P 560. 00/112%) Add 12% VAT (12% of P 500. 00 Total Amount charged P 500. 00 60. 00 P 560. 00 25

What’s wrong…. LOGO Sample only 26

LOGO Spot the error… Sample only 27

Proper Invoicing and Receipting LOGO Sample only 28

Proper Invoicing and Receipting of Output Tax LOGO q Penalty • for each act or omission, be punished by a fine of not less than P 1, 000. 00 but not more than P 50, 000. 00 and • suffer imprisonment of not less than two (2) years but not more than four (4) years. 29

LOGO Thank you! 30