Wednesday, April 09, 2008 BIR to run after SMEs not paying proper taxes By Carlo P. Mallo
THE Bureau of Internal Revenue (BIR) will crack down on small and medium enterprises, which continue to declare improper amount of taxes due to them. The BIR Southern Mindanao chief claims to have no problem with bigger companies.
In an interview, lawyer Marcelinda Omila-Yap, BIR Southern Mindanao chief, said the agency would now shift its focus on small and medium enterprises, a number of which continue to evade the payment of the proper amount of tax.
"A lot of SMEs under declare their taxes," Yap said.
For starters, Yap said they have already sent letters to the various small and medium enterprises in the city reminding tem of their tax obligations.
"It does not mean they are tax evaders if they receive a letter, it is only a reminder," Yap said.
Moreover, Yap said the local government units (LGUs) in Southern Mindanao, especially in Davao City, have been very cooperative with their revenue collection efforts.
"The City Government of Davao has provided us easy access to enable cross matching of the different SMEs," Yap said.
Cross matching is one of the procedures employed by the BIR to ensure that the proper dues are paid by SMEs with the City Treasurer's Office, BIR, and Business Bureau.
