DEC.

7, 2011 DATE

NR # 2610B
REF. NO.

Solon urges panel to include doctors, lawyers in hearing on BIR detailed income information circular
A lawmaker has called on the House Committee on Ways and Means to include major stakeholders like doctors, lawyers, and like professionals and their groups or organizations to serve as resource persons in the panels ongoing hearings on the controversial circular of the Bureau of Internal Revenue requiring additional detailed income information from taxpayers. Rep. Winston Castelo (2nd District, Quezon City) through House Resolution 1911 said inviting these particular stakeholders to the committee hearings would be necessary in clearing the issues brought about by the BIR circular that had been causing worry and apprehension among taxpayers. There is a need to clear the air of much apprehension and fear amidst warnings from the BIR that may have already sent shark-attack effects on our political beach especially as it appears to single-mindedly raise the Sword of Damocles as if it were against our doctors, lawyers and like professionals who despite contributing their vital role to nation-building are being unduly scared by the BIR as it threatens to apply the expenditure method to check, monitor, and do surveillance on their income sources, said Castelo. Castelo said it is of doubtful validity how the form of the so-called Detailed Income Report would look like and how on the basis of such document the taxpayers could be held liable for perjury in cases of inherent inaccuracies in detailing their earnings. This is especially amid warnings or advisories of the BIR urging taxpayers such as doctors, lawyers and like professionals to comply with tax laws and file their income tax returns, Castelo said. A new BIR regulation shall require all taxpayers to render a detailed income report when they file their income tax returns and such policy is said to be implemented starting in April 2012 amid opposition raised by House members assailing, among others, its possible illegal nature, Castelo said. Well-meaning members of Congress have expressed the view that tax collectors might just be usurping the powers of Congress if they make impositions other than what the law clearly specifies and more so that as it compels taxpayers who are not required under the Tax Code to make a detailed income report to now disclose such information with the imposition of this reporting requirement in possible contravention to an existing Bank Secrecy Law, he said.

DEC. 7, 2011 DATE

NR # 2610B
REF. NO.

Castelo said the BIR or Department of Finance should lay the basis, if any, of requiring taxpayers to submit a detailed income report along with their ITR effective April 2012. The Committee on Ways and Means chaired by Rep. Hermilando Mandanas (2nd District, Batangas) has been conducting hearings on Revenue Memorandum Circular 402011 on the basis of a letter of Rep. Magtanggol Gunigundo (2nd District, Valenzuela City) dated October 21, 2011 which states that there is no legal basis for the circular to stand since law is needed to carry out what the BIR wants under this new memorandum circular. Gunigundo said RMC 40-2011 issued by BIR Commissioner Kim Jacinto-Henares last September basically implements the Annual Information Return (AIR) that mandates list up of passive income of taxpayers under Revenue Regulations 2-2011 that was already suspended last March by Finance Secretary Cesar Purisima, through the efforts of the House Committee on Ways and Means, by Revenue Regulation 6-2011. (30) rbb