LOGO BUREAU OF INTERNAL REVENUE Revenue Region 19, Davao City Bolton Ext., Davao City

LOGO Our Goal 2010 Goal: P B 2011 Goal: P9.074 B 4.57% increase or P397 M 2

LOGO As of Nov. 30, 2011 Our Goal for 2011 P 9,074,576,000 Our Collection as of 11/30/118,307,585,172 Target for the remaining period P 766,990,828 3

LOGO Our Collection Performance (Jan. to Nov in Billion Pesos) 4

LOGO PRIORITY PROGRAMS OF BIR RR 19-DAVAO CITY 5

LOGO 6

RUN AFTER TAX EVADERS  The Bureau had recently realized that maintaining public confidence in the fairness of the tax system is vital to effective tax administration.  By investigating potential violations of the Tax Code and prosecuting tax offenders, the taxpaying public would recognize and be aware that the BIR is committed to ensure that everyone is paying their fair share of taxes. 7

LOGO RUN AFTER TAX EVADERS  RATE – instituted in March 2005 in support of BIR’s mandate: to investigate criminal violations of the NIRC and to prosecute such cases  Objectives: To deter, to the greatest possible degree, tax evasion practices To encourage voluntary compliance with the internal revenue tax laws 8

LOGO RUN AFTER TAX EVADERS  To date, Com. Kim Henares has filed with DOJ a total of 83 RATE cases as of Dec. 8, 2011 against businessmen & prominent personalities. 9

LOGO RUN AFTER TAX EVADERS  1 RATE case has been filed against a plastic manufacturer in Tagum City (1st RATE case filed outside Metro Manila);  another RATE case has also been filed against a rice dealer in Davao City, including her Accountant 10

LOGO RMO NO dated January 15,

LOGO OPLAN KANDADO  an initiative to strengthen BIR’s imposition of prescribed administrative sanctions for non- compliance of the ff: issuance of receipts filing of returns declaration of taxable transactions taxpayer registration, and paying correct amount of taxes 12

LOGO OPLAN KANDADO GROUNDS FOR SUSPENSION OR TEMPORARY CLOSURE OF BUSINESS  Failure to issue receipts or invoices by a VAT- registered or registrable taxpayer  Failure to file a VAT return  Understatement of taxable sales or receipts by 30% or more of the correct amount thereof in the case of a VAT-registered or registrable taxpayer  Failure to register 13

LOGO BENCHMARKING (RMO ) 14

LOGO BENCHMARKING  the process of determining the performance level of taxpayer in a given line of industry  the setting of a standard in determining taxpayers’ performance/ compliance.  used as reference point in a tax survey 15

LOGO MONITORING OF SUMMARY LIST OF SALES AND PURCHASES (SLS/P) RMO /RMC

LOGO Summary List of Sales/Purchases  Who are required to submit SLS?  All persons liable for VAT (manufacturers/wholesalers/service- providers, etc.) with quarterly total sales/receipts (net of VAT) exceeding P2.5M  Who are required to submit SLP?  All persons liable for VAT (manufacturers/wholesalers/service-providers, etc.) with quarterly total purchases (net of VAT) exceeding P1M 17

LOGO Audit of Tax Returns RMO No dated Feb. 3,

LOGO AUDIT  Issuance of Letters of Authority for Taxable Years 2009 and 2010 giving priority to taxpayers who render professional services  Issuance of Letter Notices as a result of the cross-matching operation by the BIR- National Office 19

LOGO ACCREDITATION OF TAX AGENTS AND PRACTITIONERS RR as amended by RR and RR

LOGO Where to apply  Submit to the Revenue Region Accreditation Board (RRAB) having jurisdiction over the place of his/its principal residence or place of business.  duly accomplished Application Form  documentary requirements 21

LOGO Effects of Accreditation  Only those Tax Agents/Practitioners who were issued with Certificate of Accreditation or ID shall be allowed to represent a taxpayer in the BIR 22

LOGO Revenue Regulations Providing Penalties for Violation of the Requirement that Output Tax on the Sale of Goods and Services Should be Separately Indicated in the Sales Invoice or Official Receipt 23

LOGO Proper Invoicing and Receipting of Output Tax  Revenue Regulations Reiterates Sec. 237 of the Tax Code that VAT- registered taxpayers should separately bill the VAT. The amount shall be shown as a separate item in the invoice or receipt 24

LOGO Proper Invoicing and Receipting of Output Tax Ex: If the amount charged is P560.00, it shall be presented in the following manner: Professional Fee (P560.00/112%) P Add12% VAT (12% of P Total Amount charged P

LOGO What’s wrong…. Sample only 26

LOGO Spot the error… 27 Sample only

LOGO Proper Invoicing and Receipting Sample only 28

LOGO Proper Invoicing and Receipting of Output Tax  Penalty for each act or omission, be punished by a fine of not less than P1, but not more than P50, and suffer imprisonment of not less than two (2) years but not more than four (4) years. 29

LOGO Thank you! 30