MANILA, Philippines - The government has zeroed in on popular flower shops in Metro Manila to determine their compliance with obligations as part of the intensified campaign against tax evasion.
Based on the Department of Finance and Bureau of Internal Revenue’s latest TaxWatch advertisement, only half of the top 10 florists identified by lifestyle guide website Spot.ph filed their income tax returns for 2012. Carlos Florists Inc. paid the highest income tax among the 10 flower shops with P117,538 followed by Tecson Flowers at P92,570.87.
Flower Farm remitted P42,600 to the BIR while Spruce Floral Designs and Teddy Manuel paid P6,993 and P1,463 in income tax, respectively, during the period.
Teddy Manuel, which declared the lowest income tax in the list, not only arranges bouquets but also manages weddings.
Two of the more famous flower shops – Flowers by Sylvia and Designer Blooms – did not pay income tax in 2012. Designer Blooms has the most number of registered branches at more than 40, the ad said.
The BIR is keeping a tight watch over business establishments as part of the government’s all-out war against tax cheats and high-earning individuals who underpay their taxes.
Aside from self-employed professionals, the BIR is also keeping a watchful eye on businesses related to petroleum, real estate, contractors that deal with government entities, wholesalers and retailers, and tourism.
Others included in the watchlist are restaurants, fastfood chains, catering services, coffee shops, hospitals, medical and dental laboratories, clinics for beauty enhancements, factories, entertainment centers, advertising agencies, business process outsourcing companies and recruitment services agencies.
The BIR is under pressure to raise P1.46 trillion in tax revenues this year, 16 percent higher than its 2013 collection goal of P1.25 trillion.
Income taxes account for the bulk of the agency’s revenue goal at P855.8 billion or about 58.6 percent of the total.