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BIR hopes TRAIN law will encourage more small businesses to pay proper taxes

by UNTV News   |   Posted on Friday, January 12th, 2018

MANILA, Philippines – The Bureau of Internal Revenue (BIR) admits having difficulty in determining if small and medium enterprises are paying proper taxes.

According to the BIR, they can ensure that employees are paying proper taxes as it can be done automatically, unlike those who are self-employed or those with businesses.

“But the self-employed pay voluntarily, we relied on voluntary filing and payment,” BIR Asst. Commissioner Atty. Marissa Cabreros said.

However, with the implementation of the tax reform law, the BIR is confident that many self-employed will pay their taxes.

Based on the TRAIN law, small medium enterprise owner and the self-employed have the liberty to choose the manner in which they pay their taxes.

Under the tax reform, all self-employed and businesses earning below P300-million yearly should pay an 8 % tax, or through a graduated income tax rate.

“Your gross receipts is 8%, it’s easier. You should file. You will not worry if you will collect it and keep your gross receipts. Another option is the gross receipts you collect, and it has deduction,” Cabreros said

The BIR said the process has been easier under the TRAIN law that’s why they are expecting more tax payments.

For Maricar Cruz, who owns a laundry shop, she is happy with the tax reform the government implements. She vows to always pay her taxes on time.

“The 8% tax is okay. I hope it could help for the progress of the country,” Cruz said.

However, Laban Konsyumer President Vic Dimagiba said although the process has been simplified, small medium enterprises cannot hugely benefit from the tax reform law.

“They should pay VAT that’s for sure. They can no longer benefit. They have additional payments. They will pass on to their customers all the increases in fuel and electricity and other hikes,” Dimagiba said.

The BIR said everyone might feel burdened because of the tax reform, but notes that many will benefit in the long run.

The agency said additional taxes collected from the tax reform will be allocated to the projects of the government that will further improve the Philippine economy. – Mon Jocson | UNTV News & Rescue

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BIR: Employers must comply with new tax exemption rules under TRAIN Law

by UNTV News   |   Posted on Friday, January 12th, 2018

MANILA, Philippines – Taxpayers trooped to the public consultation of the Bureau of Internal Revenue (BIR) to answer queries regarding the new tax exemption rules under the Tax Reform for Acceleration and Inclusion or TRAIN Law.

One of the main issues asked is whether a minimum wage earner is still exempted from paying income tax if his annual income exceeds P250,000 due to overtime pay and other incentives.

“There are specific words and other words retained from the old tax code that says a minimum wage earner is exempt from income taxes. So if you’re under minimum wage category, you will be exempted including holiday pay regardless if your total income for the whole year exceeds 250,000” BIR Spokesperson Atty. Marissa Cabreros said.

The BIR stresses that the tax reform law has already taken effect since January 1, so workers earning 21,000 and lower should not have any deductions pertaining to any taxes.

“Our withholding agents have an obligation to ensure that their withholdings are correct. Some employers say there’s no revenue regulation yet. But there’s no need to wait for the revenue regulation because we’ve already released an issuance,” Cabreros said.

The BIR encourages employees to directly report to them any employer who fails to comply with the new tax exemption rule.

“If they exceeded withholding this January in the first salary, they should self-correct to adjust and give back the excess in the next payouts,” Cabreros added. – Mai Bermudez | UNTV News & Rescue

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DOE orders gasoline stations to explain unauthorized increase in oil prices

by UNTV News   |   Posted on Thursday, January 11th, 2018

MANILA, Philippines – In an announcement, the Department of Energy (DOE) said fuel price hike should take effect on the 15th of January since it will be the expected date when they already used up their inventories.

But some gasoline stations are already posting signage’s which said they are enforcing an increase in fuel prices.

There are more than 9,000 gasoline stations across the country. More than 200,000 of these are in Metro Manila. For now, more than 50 gasoline stations in Metro Manila have already implemented an increase in their fuel products.

Thus, DOE is asking for an explanation from oil companies as to why they implemented an early increase in the prices of their fuel products.

DOE admitted to having difficulty in determining if the gasoline stations have really used up their stocks.

“In a way, right now again based on documents kami so that’s our reference …we already issued a directive so all oil companies are aware of that directive and we anticipate that these directives are all disseminated in all their dealers,” DOE Science Research Specialist Chief Renante Sevilla said.

The DOE said it will cancel the certificate of compliance of gasoline companies proven to have lied about their inventories.

The DOE will also report to the Bureau of Internal Revenue (BIR) erring gasoline stations so the agency could determine if they properly pay taxes.

Local government units can also order the closure of gasoline stations once their certificates of compliance have been canceled.

A consumer group, meanwhile, criticizes the DOE’s process of inspection. According to Vic Dimagiba of the Laban Konsyumer, the DOE should issue a show cause order.

“Show that they mean what they say. They should issue a paper, they should not just inspect, and then leave. Their monitoring has no teeth. There should be an enforcement and then have them explain in 48 hours whatever the rules said 72, they should explain that they have no committed profiteering,” Dimagiba said.

In response, the DOE said it is waiting for the approval of Sec. Alfonso Cusi for the issuance of a show cause order. Through a show cause order, gasoline stations will have no choice but to follow the government’s order or else face charges. – Mon Jocson | UNTV News & Rescue

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NAPC to monitor the effects of TRAIN law on poor people

by UNTV   |   Posted on Thursday, January 11th, 2018

MANILA, Philippines — The National Anti-Poverty Commission (NAPC) will monitor the effect of the new tax law on the daily lives of around 21.9 million poor Filipinos or those living below the poverty and are earning P9,600 and below per month.


National Anti-Poverty Commission (NAPC) Lead Convenor Secretary Liza Masa said the agency is now drafting a mechanism for this purpose.

The official noted that they have long been exempted from paying income tax but will now have to spend more due to the new tax law.

“Pagka nagkaroon pa talaga ng inflation o pagtataas ng mga presyo ng mga bilihin, yun ang magiging problema para sa kanila. So mas lalo silang mabu-burden (If an inflation or the increase in prices of goods occurs, it will be a problem for them. They will be burdened further),” said the secretary.

The agency will also monitor if the 200 monthly subsidy for each of the 10 million poor households is enough to mitigate the impact of TRAIN.

“Kung kukwentahin natin kung ano ang taas ng bilihin eh di ima-minus natin yung sa P200. Mako-cover ba o baka mas mataas yung mangyari (If we compute the price increase in goods, then deduct it from the P200, will it be able to cover it or will it turn out to be higher?),” said the officer.

Maza said that the real number of Filipinos who are suffering from poverty may reach 50 million or almost half the country’s population if salary is not the only barometer of being poor.

She also said that she has also laid several propositions to the President on how to improve the lives of poor people.

“Yun bang trabaho mo secure? Do you have a stable job? May bahay ka ba? Kamusta edukasyon?  Yung health? Yung usapin ng peace? So lahat yun, aspeto ito ng kahirapan (Is your job secure? Do you have a stable job? Do you have a house? What about education, health and issues on peace? All of these are aspects of poverty),” said the secretary. — Rey Pelayo | UNTV News & Rescue

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