BIR steps up tax compliance activities

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has stepped up its tax compliance activities by reiterating the registration of unmanned sales outlets or service equipment.

BIR Deputy Commissioner Nelson Aspe said these equipment include Automated Vending Machines (AVMS), Automated Ticket Dispensing Machines and Automated Teller Machines (ATMs) as mandated by existing revenue regulations.

Aspe said a BIR issuance requiring the registration of these equipment has been implemented since 2008 but needed to be reenforced through a memorandum dated January 19, 2010.

According to Aspe, the machines shall be registered as a “branch” with the BIR office having jurisdiction over its physical location if they are not registered within the BIR head office or branch but located in public places like malls, convenient stores, restaurants, bowling alleys, amusement parks, arcades, gas stations, movie theaters, schools, colleges or retail stores.

The taxpayer owning, leasing or otherwise controlling the sales outlets or service equipment is liable to register with the BIR office and pay the corresponding annual registration fee of P500.

The BIR said that in addition to this, a Certificate of Registration (COR) provided by the tax agency should be securely attached to the sales machine or equipment and should be conspicuously displayed to the public.

He further stated that the COR shall be non-transferable to another taxpayer or from one location to another and should any changes be made as to its ownership and location, reregistration is required.

Furthermore, Aspe has reminded all BIR Offices to strictly implement said provision to fully support its tax collection efforts and Tax Compliance Verification Drive (TCVD).

The registration would help the BIR have an updated record of taxpayers’ sales outlets and service equipment and enable the agency to better track the activities and operations of taxpayers.

The BIR is tasked to collect P830 billion this year, lower than the initial estimate of P875 billion as agency officials led by BIR Commissioner Joel Tan-Torres appealed for a lower revenue goal, arguing that the global financial turmoil and the effects of typhoons Ondoy and Pepeng which struck in 2009 are expected to slash this year’s tax-take.