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BUREAU OF INTERNAL REVENUERevenue Region 19, Davao City

Bolton Ext., Davao City

LOGOOur Goal

2010 Goal: P 8.677 B

2011 Goal: P9.074 B

4.57% increase or P397 M

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LOGOAs of Nov. 30, 2011

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

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LOGOOur Collection Performance(Jan. to Nov. 2011 in Billion Pesos)

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PRIORITY PROGRAMS OF BIR

RR 19-DAVAO CITY

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LOGORUN AFTER TAX EVADERS

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.

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LOGORUN AFTER TAX EVADERS

RATE – instituted in March 2005 in support of BIR’s mandate: to investigate criminal violations of the NIRC and to prosecute such cases

Objectives: To deter, to the greatest possible degree, tax evasion

practices To encourage voluntary compliance with the internal

revenue tax laws

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LOGORUN AFTER TAX EVADERS

To date, Com. Kim Henares has filed with DOJ a total of 83 RATE cases as of Dec. 8, 2011 against businessmen & prominent personalities.

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LOGORUN AFTER TAX EVADERS

1 RATE case has been filed against a

plastic manufacturer in Tagum City (1st RATE case filed outside Metro Manila);

another RATE case has also been filed against a rice dealer in Davao City, including her Accountant

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RMO NO. 3-2009 dated January 15, 2009

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LOGOOPLAN KANDADO

an initiative to strengthen BIR’s imposition of prescribed administrative sanctions for non-compliance of the ff:

•issuance of receipts

•filing of returns

•declaration of taxable transactions

•taxpayer registration, and

•paying correct amount of taxes12

LOGOOPLAN KANDADO

GROUNDS FOR SUSPENSION OR TEMPORARY CLOSURE OF BUSINESS

Failure to issue receipts or invoices by a VAT-registered 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

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BENCHMARKING(RMO 4-2006)

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LOGOBENCHMARKING

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

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MONITORING OF SUMMARY LIST OF SALES AND

PURCHASES (SLS/P)RMO 56-2010/RMC 60-2010

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LOGOSummary List of Sales/Purchases

Who are required to submit SLS? All persons liable for VAT

(manufacturers/wholesalers/service-providers, etc.) with quarterly total sales/receipts (net of VAT) exceeding P2.5M

Who are required to submit SLP?All persons liable for VAT

(manufacturers/wholesalers/service-providers, etc.) with quarterly total purchases (net of VAT) exceeding P1M

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Audit of Tax ReturnsRMO No. 4-2011 dated Feb. 3, 2011

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LOGOAUDIT

Issuance of Letters of Authority for Taxable Years 2009 and 2010 giving

priority to taxpayers who render professional services

Issuance of Letter Notices as a result of the cross-matching operation by the BIR- National Office

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ACCREDITATION OF TAX AGENTS AND PRACTITIONERS

RR 11-2006 as amended by RR 4-2010 and RR 14-2010

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LOGOWhere to apply

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

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LOGOEffects of Accreditation

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

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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

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LOGOProper Invoicing and Receipting of Output Tax

Revenue Regulations 18-2011

• Reiterates Sec. 237 of the Tax Code that VAT-registered taxpayers should separately bill the VAT.

• The amount shall be shown as a separate item in the invoice or receipt

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LOGOProper Invoicing and Receipting of Output Tax

Ex: If the amount charged is P560.00, it shall be presented in the following manner:

Professional Fee (P560.00/112%) P 500.00

Add12% VAT (12% of P500.00 60.00

Total Amount charged P 560.00

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LOGOWhat’s wrong….

Sample onlySample only

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LOGOSpot the error…

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Sample only

LOGOProper Invoicing and Receipting

Sample only

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LOGOProper Invoicing and Receipting of Output Tax

Penalty

• for each act or omission, be punished by a fine of not less than P1,000.00 but not more than P50,000.00 and

• suffer imprisonment of not less than two (2) years but not more than four (4) years.

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Thank you!

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