Philippines Brings Stall Holders into Tax Net
January 31, 2012 Taxation in Philippines
MANILA – Tax inspectors in the Philippines will soon tighten tax controls for stall holders and small businesses in public markets in an effort to increase tax compliance across the country.
The government of the Philippines is initiating a new project to ensure that small business owners and stall operators across the country are complying with their tax obligations. The new initiative was revealed by Commissioner of the Bureau of Internal Revenue (BIR) Kim Jacinto Henares while speaking at a press conference on January 29th.
Under the new regulations BIR investigators will be tasked with carrying out “tax mapping” operations across public markets in the Philippines, predominantly to ensure that all small businesses issue official receipts and record their sales.
The BIR agents taking part in the operations will be granted powers to inspect business premises, to investigate the accounts and records of the businesses, and to monitor the operators to see if receipts are being issued. Further, the inspectors will provide stall owners with official BIR materials, which must be displayed in the business premise to encourage taxpayers to meet their obligations.
In order to prevent abuse, the “tax mapping” will be restricted to small markets, and all BIR agents will be required to obtain and hold an official BIR investigation order before commencing any inspections.
Any business found to be breaching its filing or tax requirements can be fined PHP 2 000 for a first time offense, and if subsequent breaches occur, the business could be closed down and criminal charges against the business owner could be raised.
Photo by Nina Matthews Photography