Tax bureau bares tips to avoid suits

CITY OF SAN FERNANDO — The Bureau of Internal Revenue (BIR) bared tips on how taxpayers can avoid tax-related cases under the Oplan Kandado program.
BIR regional director Aracelli Francisco said VAT Taxpayers with under declaration of sales/receipts by more than 30 percent might find themselves in trouble under the Oplan Kandado program.
She said taxpayers may find themselves in trouble with the law if they have very low Value Added Tax (VAT) compliance for TY 2010-2012 and failed to issue VAT Receipts/Invoices and file their VAT Returns.
Taxpayers are also in trouble if they sales/receipts over P1.9 million who failed to register as VAT taxpayers.
“Taxpayers can avoid Oplan Kandado if they amend ITR to reflect correct sales receipts and pay correct VAT and income tax, declare true sales/receipts and pay correct monthly/ quarterly VAT due and file monthly and quarterly VAT returns,” Francisco told Sun.Star Pampanga.
Francisco said another effective way of beating the Oplan Kandado program is the issuance of VAT receipts and payment of correct monthly and quarterly VAT.
Francisco added the business establishment must now comply with the payment of all standing obligations with the BIR or face legal actions.
The BIR Oplan Kandado is an intensive campaign which seeks to padlock businesses with unpaid tax dues, as well as those who are engaged in illegal practices such as failure to register, understatement of taxable sales by more than 30 percent and the refusal to issue receipts.
It is also designed to instill the “fear factor” on non-compliant and recalcitrant taxpayers. Based on experience, according to BIR, under-declaration can go as high as 80-90 percent.
Under the Oplan Kandado Program, business establishments that fail to pay the right taxes are temporarily padlocked by the BIR.
BIR officials also noted that for so many years, taxpayers only declare what they want to declare. With Oplan Kandado, the BIR now literally padlocks business establishments that evade payment of correct taxes.
http://www.sunstar.com.ph/pampanga/local-news/2012/04/27/tax-bureau-bares-tips-avoid-suits-218453