MANILA, Philippines - The Bureau of Internal Revenue (BIR) has tightened the disclosure requirements for individual and corporate taxpayers, with the end goal of obtaining more information on taxes and duties remitted to the tax agency.
Finance Secretary Cesar Purisima said the newly issued regulation would make it easier for the BIR to monitor and track if companies were paying the right amount.
“It will still not be able to deal with outright nondisclosure of revenues but bookkeepers who cannot take the cheating anymore can provide us information anonymously so we can catch tax cheats,” Purisima said.
He said bookkeepers and other informants can provide tips and leads through the Department of Finance’s www.perangbayan.com, a website intended to help in the government’s campaign against tax evaders and smugglers.
Under the newly issued BIR regulation, taxpayers are required to include information on taxes, duties and license fees paid or accrued during the taxable year in addition to the disclosures mandated under the Philippine Financial Reporting Standards.
“Taxpayers must now disclose information on the amount of value added tax (VAT) output tax declared during the year and the account title and amount upon which the same was based,” the BIR said in its regulation.
Furthermore, it said that any information on the amount of VAT input taxes claimed beginning of the year as well the current year’s domestic purchases and payments for goods for resale, manufacture or further processing must also be indicated.
The BIR is also requiring information on goods other than for resale or manufacture, capital goods subject or not subject to amortization as well as services lodged under cost of goods sold and other account.
Claims for tax credit, refund and other adjustments also need to be disclosed, the tax agency said.
For importers, the BIR is requiring information on imports and the amount of customs duties and tariff fees paid. The amount of excise tax classified per major product category such as tobacco and alcohol products, automobiles, minerals, oil and petroleum paid on locally produced and imported excisable items must also be incorporated in the report.
Investments in different instruments and stocks will also be scrutinized, the BIR said.
This means that information on documentary stamp tax (DST) on loan instruments, shares of stock and other transactions as well local and international taxes must also be disclosed, the BIR said.
“For withholding taxes, information must include tax on compensation and benefits, creditable withholding taxes and final withholding taxes,” the BIR said.