The Bureau of Internal Revenue (BIR) said yesterday that it will start auditing big real estate developers in the country to get the exact figures of their income.
The move is part of efforts to raise more revenues and boost state coffers.
As such, the agency yesterday met executive officers and representatives of large taxpayers in the real estate and trading industry that included Ayala Avenue Joint Venture, Araneta Center, Inc., Avida Land Corp., Ayala Land Inc., Cityland Development Corp., Fil Estate Realty Corp. and Filinvest Dev. Corp.
BIR Commissioner Lilian Hefti also met with officials of Rockwell Land Corp., San Miguel Properties Inc., Shangri-la Plaza Corp., Shoemart Plaza Corp., Shoemart Inc., SM Investments Corp. and Sta Lucia Realty and Dev. Inc.
Officials of Robinsons land Corp., First Asia Realty Dev. Corp., Gonzalo Puyat and Sons Inc., Landco Pacific Corp., Manila Memorial Park Cemetery Inc., Marina Square Properties Inc., and Megaworld Corp. also attended the meeting with the BIR.
During the meeting, Hefti told officials of real estate firms to provide accurate management and accounting reports to enable the BIR to get the exact tax figures of their companies.
Earlier, the BIR issued regulations on the payment of capital gains tax (CGT), creditable withholding tax (CWT) and documentary stamp tax (DST) due on onerous transfers of real properties.
“These regulations aim to provide an efficient service to large taxpayers with respect to their real estate transactions by transferring the venue for filing the tax returns and payment of the taxes including securing of Tax Clearance Certificate (TCC), Certificate Authorizing Registration (CAR) to the concerned large taxpayers service, particularly, to the LT-Assessment and Investigation Division 1 (LTAID 1),” Hefti said.
According to the new regulations, the BIR said that the LTAID 1 may issue the corresponding tax clearance on the transfer of real estate property upon payment of the CGT, CWT and the DST.