Filing of 2010 annual info returns optional, says BIR

Filing of 2010 annual info returns optional, says BIR

abs-cbnNEWS.com
Posted at 03/09/2011 12:08 PM | Updated as of 03/09/2011 7:08 PM

BIR wants AIR, not SALN, from rich taxpayers

MANILA, Philippines (UPDATE) - The Bureau of Internal Revenue (BIR) has given taxpayers leeway by making the filing of annual information returns (AIR) for 2010 optional.

"This will give affected taxpayers time to acquaint themselves with this new requirement and see how they can best effectively comply with the same. This will also allow the BIR to monitor its implementation on a pilot basis and make the necessary adjustments where needed," said BIR Commissioner Kim Henares announced during the launch of the Large Taxpayers Service (LTS) tax campaign program on Monday.

Henares also denied a Philippine Daily Inquirer report that they are asking private citizens to file a "personal" Statement of Assets and Liabilities and Net worth or SALN, which is required only of government employees.
"Hindi po tama na nagre-require kami ng statement of assets and liabilities," she said.

The BIR earlier issued Revenue Regulation (RR) 2-2011, requiring individuals, estates and trusts to file their Income Tax Returns (ITR) "together with the AIR or BIR Form No. 1705, which shall include such income subject to final withholding tax and those exclusions from gross income."       

Some taxpayers had objected to the order, saying it would be difficult to report income they did not know they had to record.

Henares said the filing of AIR will be voluntary this year, but mandatory next year.

The mandatory filing of AIR aims to address 2 issues. These are the non-inclusion of famous and wealthy personalities in the list of top individual taxpayers, and the impending government requirement of ITRs as basis for the granting of loans and licenses, among others, Henares said.
Those that are required to file an AIR include:

pure compensation income earners whose annual taxable income derived from within the Philippines exceeds P500,000 tax and on which income the correct income tax has been correctly withheld;
individuals, estates and trusts whose sole income has been subjected to final withholding tax in excess of P125,000 annually, whether remitted or not to the BIR; and
individuals whose sole income is exempt where the aggregate amount exceeds P500,000 annually.
The deadline for filing is April 15 each year for those filing the ITR and AIR, and May 15 for those filing just the AIR.

The BIR is hard pressed in boosting collections to plug the country's budget deficit, which reached a record P314 billion or 3.7% of gross domestic product (GDP) last year.

This year, the government wants to narrow the shortfall to P290 billion or 3.2% of GDP.

LTS campaign

Meanwhile, the Large Taxpayers Service (LTS) division of the BIR, which is tasked to collect at least 60% of the tax agency's goal, is confident it could meet its target this year.

The LTS launched on Wednesday a campaign to shore up its collections, and priority programs include the use of Computer-Assisted Audit Techniques and Tools System, Risk-based Audit, e-Taxpayer Account Management Program Project, and e-Authority to Remove Imported Goods Processing.

The LTS is expected to collect over P457 billion of the BIR's P940 billion goal this year.

“The goal allocation for the LTS may look gargantuan but it is doable," said LTS Assistant Commissioner Zenaida Garcia. - With a report from Karen Flores, abs-cbnNEWS.com

--
---------------------------------------------
CARLOS ANI - SEEDFINANCE Corporation - http://www.seedfinance.net
Email: carlosani@seedfinance.net
Landline: +63495010127 Cellphone: +639152919580
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com http://phildevfinance.wordpress.com
CONSULTING - http://www.carlosani.com
My Clippings - http://www.myclipps.posterous.com
------------------------------------------