CEBU, Philippines- The Bureau of Internal Revenue has ordered the submission of new reporting requirements of firms that maintain inventories of raw materials, stock-in-trade, goods and other supplies.
Companies covered include those in manufacturing, wholesaling, distributing/retailing; and sectors including real estate dealers and developers and service firms such as construction companies and building contractors.
"This is in line with the bureau's objective of implementing an expanded and improved landscape of accounting information reporting that seeks to provide reliable data and to maximize the quality and adequacy of such data for better monitoring and analysis," the BIR noted in Revenue Memorandum Circular 57-2015.
Inventories are usually used in computing the net income of a firm.
"This circular aims to consistently apply the data requirements across different sectors with the peculiarity of the industry, where the taxpayers belong directing the volume of reporting," it said.
The additional documentary requirements are on top of the annual inventory list that companies submit to BIR and that they should be submitted by September 30, 2015, and thereafter on every 30th day following the close of the taxable year.
"It bears stressing that the data/information contained in the said schedules/lists should be reconciled with the amount declared in the financial statements and annual income tax returns," the bureau said.
Failure to submit the new documentary requirements will result to penalties provided under Sections 250 and 255 of the National Internal Revenue Code. Penalties include a fine of not less than P10,000 or imprisonment of not less than one year but not more than 10 years. (FREEMAN)