BIR launches SanTax Claus project

MANILA, Philippines - The Bureau of Internal Revenue (BIR), the government’s main tax agency, launched yesterday its so-called “SanTax Claus Project” at the Greenhills Shopping Center in San Juan, in an attempt to monitor the tax compliance of small retail establishments or bazaars that sprout during the Christmas season.

Acting BIR Commissioner Joel Tan-Torres, led the launch and also held a dialogue with invited tiangge or bazaar operators, commercial event organizers, and vendors to discuss tax compliance requirements.

Simultaneous SanTax Claus launches were also held in Pasay, Taguig, Mandaluyong, San Juan, Makati and Quezon City, where revenue officers wearing SanTax Claus outfits were deployed to check on stores’ compliance with BIR require-ments.

These retail establishments are specifically checked for their registration requirements and issuance of receipts and invoices.

The SanTax Claus teams distributed flyers to the participating vendors, posted tarpaulins and observed whether vendors are properly issuing receipts or invoices. They also collected certain information on the vendors to make sure they issue registered receipts or invoices.

In the event that the organizers and vendors are found to have committed any violations, the different BIR teams will hand out applications for registration forms with pre-generated taxpayers identification number (TIN) to assist the businesses in registering with BIR.

They are also asked to pay the annual registration fee and submit the application form on- the-spot. 

Tan-Torres said the SanTax Claus Project is not an enforcement activity of BIR, but rather to promote voluntary compliance for taxpayers that will result in the generation of taxes.

He said the primary objective of the project is to improve tax awareness by encouraging the general public to demand habitually invoices for goods purchased and official receipts for services rendered.         

Furthermore, Tan-Torres clarified that the BIR is not imposing additional taxes on bazaars as misunderstood by many.

He added that the project intends to educate the public on the importance of asking for receipts and voluntary compliance of taxpayers , which records reveal, is the most efficient and effective approach to collecting revenues.