Businessmen to BIR: Collect from untaxed biz

While the business sector, especially the Filipino-Chinese Chamber of Commerce and Industry (FCCCI) appreciates the effort of the government in implementing the Tax Amnesty Law (RA 9480), it likewise urges the Bureau of Internal Revenue (BIR) to run after the huge taxes generated from the underground economy.

FCCCI-Cebu chapter president Felomino Lim dismissed impressions that there are a large number of Chinese businesses that have not paid the right taxes to the government, saying legitimate Filipino-Chinese traders are now more responsible, compared to the older days.

In fact, he said FCCCI-Cebu recently issued a circular to its over 600 members to avail of the Tax Amnesty offered by the government, to clean impressions that most Chinese traders are “tax evaders.”

“We [FCCCI] encourage our members to pay their right taxes, and avail of the amnesty so that we will be cleaned,” Lim said.

Lim defended notions that there are still businessmen especially Chinese traders that are maintaining three accounting books, one intended for internal operations, the other one for BIR, and the third book is for investors.

“I don’t agree that there are still [large number] of businessmen who are maintaining two or three books, there might be some, but the number is very minimal,” Lim said.

Members of the FCCCI both in Cebu and Lapu-Lapu chapters participated in the recent BIR-led Tax Amnesty Roadshow held in Cebu, hosted by one of the authors of the law Quezon 3rd district Congressman Danilo E. Suarez, chairman of the oversight committee in the House of Representative.

According to Lim, the government could earn more if it has to properly convince the businesses who are into the underground economy to pay their taxes.

Unlicensed businesses such as those operating on the sidewalks, wet market, fish vendors, middlemen that transport vegetable goods to the trading market, apartment operators, foreign exchange changers, among others.

According to Lim there are also people who buy real estate properties but have not declared transfer of ownership, and properties used for apartment business, and other revenue generating projects.

RA 9480 offers, among others, an immunity from payment of taxes and penalties due to non-payment of tax for 2005 and prior years; inadmissibility of the tax amnesty return and statement of assets, liabilities and net worth (SALN); immunity of the SALN and tax amnesty return from being inquired or looked into by any person; and immunity from audit.

The amnesty can be availed of by submitting the SALN, tax amnesty return, notice of availment and acceptance form at any BIR regional district office on or before March 6, 2008.

In an interview with Suarez, he said that the real problem of the government right now is not with the small to medium taxpayers as most of them are paying their taxes rightfully, but the biggest burden now lies on catching the big fishes.

Through the amnesty program, which is the first of its kind passed into law in the Philippines, aims at generating at a low of P4 billion to as high as P12 billion in revenue for the government’s pocket.