BIR to investigate boarding houses

Operators of boarding houses and those renting out houses are the next targets for tax investigations by the Bureau of Internal Revenue.

Bonifacio Ybañez, officer-in-charge of the Bureau of Internal Revenue 13 in Cebu City that covers the provinces of Bohol and Cebu, said they are now going around the region to weed out boarding house operators who have not registered their businesses with the BIR.

Ybañez said any business not registered with the BIR is illegal, with a penalty ranging from P5,000 to P20,000 in fines. This is on top of the P500 late registration penalty charge, a 50 percent surcharge of the P500 penalty, plus a 20 percent penalty per day from the time the business started.

Those caught issuing official receipts, which are unregistered with the BIR, are also penalized with P10,000 in fines.

Ybañez said under the existing tax law, those renting out houses or accepting lodgers with annual earnings of between P100,000 and P750,000 should pay the government a percentage tax of three percent of their annual gross receipts.

Those earning at least P1.5 million are already covered with the 10 percent value-added tax, he said. - with Norvie Misa, UV intern