|
Tuesday, September 20, 2005
Tax notes: BOC intensifies campaign vs. smuggling
The campaign to curb smuggling gears up with the highly-publicized filing of charges against those violating the Tariff and Customs Code and other customs laws under the Run-After-the-Smugglers (Rats) program of the Bureau of Customs (BOC).
The program is designed not only to collect taxes but also to ensure that all importers comply with existing laws and regulations on tariff and customs which complements the post-audit power of the BOC under Republic Act 9135 (April 27, 2001).
The BOC is armed to exercise its post-entry audit power with the formation of its Post-Entry Audit Group, which will look into the compliance of importers with the following:
a. Use of appropriate customs valuation method in valuing imported goods;
b. Correctness and completeness of determining dutiable amount;
c. Correctness of tariff classification used and proper description of goods;
d. Correctness of declared quantity of goods; and
e. Compliance with reportorial, registration and other administrative requirements imposed by the BOC.
The penalty for non-compliance is costly. If audit discloses deficiencies in duties and taxes, the penalty ranges from half toeight times of the revenue loss depending on the degree of culpability. The BOC is also given the authority to assess significant penalties ranging from P100,000 to P200,000 and/or imprisonment for failure to keep all the records of importations and/or books of accounts.
Unintentional non-compliance can happen. Thus, the biggest challenge is how to ensure a high level of compliance with existing laws and regulations on tariff and customs. To avoid the high cost of non-compliance, importers are well-advised to undergo a customs compliance review, which will assess their level of compliance, assist them in identifying the shortcomings in their systems and make them audit-ready. (Source: Punongbayan & Araullo)
(September 20, 2005 issue)
Write letter to the editor. Click here.
Join the Sun.Star message board. Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
