BIR Concerns

[ianlone81]

umm.. i know this is a dumb question and i havent back read, but... bakit walang tax refund pag naka 1 year ka na sa isang kumpanya? ang laki laki ng kinakaltas nila sa sahod ko and i was kinda expecting something pero wala man lang dumating ngayong december.

Depende yan. usually ang kaltas ng withholding tax ng company is based sa info mo whether your single, married or with dependent, ngaun naman lets say married ka then declared yung mga dependent mo, yung tax na kakaltasin sayo is based na dun. Pagdating ng year-end mag cocompute sila kung magkano tlga ang tax na babayaran mo, and compare sa kinaltas sayo, if sakto lang ang kaltas at hulog then no tax refund, if halimbawa naman nagdeclare ka ng additional dependent before ang remittance at naiadjust, most probably liliit ang withholding mo and ibabalik sayo ang sobra sa kinaltas and that will be your tax refund.

[teban]

Question lang sir. May work ako sa IT company and I have a sideline in an insurance company. Both companies withheld my taxes but have my ITRs separately.

My assumption is the taxes have been forwarded by both companies to BIR. I only failed to merge the ITR so that i have one consolidated ITR. Can someone please help me how to compute for the penalties in order to clear my issue with BIR?

 

All internet references I can find is about non-payment (thereby non filing) of ITRs but in my case, my understanding is that my taxes have been paid its just a matter of paper work right?

 

Thanks so much!

[Bogs26c4u]

Question lang sir. May work ako sa IT company and I have a sideline in an insurance company. Both companies withheld my taxes but have my ITRs separately.

My assumption is the taxes have been forwarded by both companies to BIR. I only failed to merge the ITR so that i have one consolidated ITR. Can someone please help me how to compute for the penalties in order to clear my issue with BIR?

 

All internet references I can find is about non-payment (thereby non filing) of ITRs but in my case, my understanding is that my taxes have been paid its just a matter of paper work right?

 

Thanks so much!

 

Well, technically, since you have two employers, you aren't qualified for what is called "substituted filing" because you have two concurrent employers - you really do need to file a separate ITR, with both employers giving you certificates of tax withheld that you use as credits against your income tax due in your combined ITR. If both companies computed your taxes correctly, then you should not have anything to pay in your combined ITR. Note though that you would still have needed to file the ITR. And your "secondary" employer (maybe the insurance company) would have had to give you a certificate of tax withheld for you to forward to the primary employer to allow the primary employer to properly compute your tax at year end (maybe tax credit or refund).

 

Given that you now have failed to file a separate ITR, the first step is to compute your tax - there is no guarantee that the tax withheld by the two employers is the correct amount, specially if neither has information on how much the other is withholding. Note that as your income goes up, so does your tax bracket. So without information on the other employer, it is likely that each employer applied a lower withholding tax bracket on your salary.

 

First and foremost, are you being harassed by the BIR for it right now? If not, I would suggest to just be silent, rather than open up a can of worms. Reality is, you're probably a small fish in a huge ocean (though you run the risk of being charged for tax evasion and fraud later on - IF caught in the first place).

 

Anyway, if we go by the book, depending on whether or not the tax withheld was correct, the implications would be different.

 

If the tax withheld was correct - you only need to file an ITR, and pay an administrative penalty (max is 50K, but usually, for something like this, it's only about Php 200 to Php 1,000)

 

If the aggregate tax withheld was NOT correct, and you effectively underpaid taxes - that's a 25% surcharge (or 50% if the BIR says you did it in bad faith - you'd then have to go to court to prove otherwise), plus 20% interest per annum (counted from when the ITR was due).

 

If you effectively overpaid taxes, technically, you're supposed to apply for a refund. But if it's not significant in amount, I'd suggest to just let it go and save yourself the hassle. Refund cases take forever, and you'd prolly end up havin to take your case to court for that.

[teban]

Thanks sir Bogs, actually my main employer is already filing the maximum bracket whereas i need to check the secondary employer if i reached the max bracket. I understand the computation of the margin is necessary and most likely should be computed at the 20% surcharge etc what the officer of the day was actually asking

me 50K payment (which i personally think is bogus).

 

They arent bugging me but I need the combined ITR in order to continue my insurance adviser status.

 

Thanks!

[Bogs26c4u]

Thanks sir Bogs, actually my main employer is already filing the maximum bracket whereas i need to check the secondary employer if i reached the max bracket. I understand the computation of the margin is necessary and most likely should be computed at the 20% surcharge etc what the officer of the day was actually asking

me 50K payment (which i personally think is bogus).

 

They arent bugging me but I need the combined ITR in order to continue my insurance adviser status.

 

Thanks!

 

Yup, the 50K is max -it's more of an administrative penalty - for failing to comply with administrative matters. There is a list of penalties that they should have. how it works is, for example, you have 50 violations of the same kind, and each violation is Php 1,500, the max they can charge you is still 50K. Next time he says 50K, ask for the list of violations with penalties. Ask how it was computed. They usually give in if they know the taxpayer knows his s@%t.

[teban]

Hi Sir, just got a copy of my ITRs and withholding forms. Nakita ko na computation nila mababa sa tamang bracket yung sa first 2 quarters ko sa insurance kaya may 20K na kulang ang withheld tax sakin the other is interest and surcharge by BIR. In relation dun sa nabanggit ninyo mukhang ganong nga 6K ang dagdag na hinihingi pero i read the instructions in the last page of the BIR form, my assessment is isa lang ang violation ko which is dleayed or incomplete filing so probably i can haggle this.

 

By the way sir, tama ba ang computation for compensation income and sales income.

- Ang autodeduction na 40% is computed lang sa sales income and not on the total (combined compensation and sales) income?

- Yung 50K na exemption computed lang dun sa compensation income. (wala akong dependents sa ngayon)

- Then ang tax bracket to be applied is the total of both (compensatory and sales) incomes?

 

Thank you so much sir for your assistance on this matter.

[angel_aishteru]

meron lng po akong concern...wat if a business registered po cla to operate pero ndi po cla nag ddeclare or nagbbyad ng tax. anu po pwdeng mangyri s business nila if the bir found about this matter?

[tombone]

BIR will give a penalty , kasi need to declare once sale's if operation if not operation ang business still have to declare no sale's sa BIR.

 

 

meron lng po akong concern...wat if a business registered po cla to operate pero ndi po cla nag ddeclare or nagbbyad ng tax. anu po pwdeng mangyri s business nila if the bir found about this matter?

[rapturousone]

meron lng po akong concern...wat if a business registered po cla to operate pero ndi po cla nag ddeclare or nagbbyad ng tax. anu po pwdeng mangyri s business nila if the bir found about this matter?

 

Importante na mag file ng tax return sa tamang panahon, kahit na walang buwis na kailangan na bayaran. Yung buwis binabayaran lang iyan kapag nagsimula ka na mag-operate. kung hindi ka nag file ng tax return o hindi ka nagbayad ng buwis, may penalty iyan. Pwede ka rin mahabla ng BIR at makasuhan ng tax evasion.

[MrGspot]

I have a question sir. My company needs O.R. For reimbursement for our Tax Shield. A known supermarket dose not issued O.R. except the from grocery receipt from the machine. They told me its a BIR approved receipt. Can we force them to issued another separate one. Please comment. Thanks.

Edited January 6, 2013 by MrGspot

[rapturousone]

I have a question sir. My company needs O.R. For reimbursement for our Tax Shield. A known supermarket dose not issued O.R. except the from grocery receipt from the machine. They told me its a BIR approved receipt. Can we force them to issued another separate one. Please comment. Thanks.

 

Yes, you can. Usually, it is available at the Customer Service Counter. Take the tape receipt from the checkout counter and present it at Customer Service.

[whip]

im an ofw at sa pagkaka-alam ko walang tax na binabayaran. unless bibili ng bahay o lupa may tax! anyway paanu po kung sa abroad nanalo ako sa mga prizes o lotto at millions of pesos in exchange rate, do I need to pay tax sa BIR at kung yung napanalunan ko ilagay sa Philippine bank account e kasama sa BIR tax..?

[Vinvin88]

Anybody have time to meet up and teach me about taxes?

 

 

I need to learn everything..

company taxes - BIR registration / filings / record keepings

POS system software.. etc.

 

Drinks and dinner on me!

[bored_office_guy]

Question po..BIR had a deadline last Oct. 31, 2013 re: dapat isurrender old OR's and magsecure ng new OR's..

I know someone who has a dormant business and hindi siya nakahabol sa deadline..

She's contemplating whether pwede pa nya iclose na lang business (cease to operate) just to avoid yung

daunted minimum P25K fine ni BIR..what are the options? TY

[mokong10101]

If she's thinking of continuing the business, all she has to do is register a new business name sa DTI then proceed to fill up the succeeding permit requirements.

 

A new DTI name has in effect extinguishing the old business name.

 

Ganyan ang style ng mga corporations which operate under the radar. They periodically change business names para maiwasan magbayad ng taxes.

 

Personally taxation is theft by the government.

[Vinvin88]

Whats a fair price to pay as retainer for an accountant?

(tax/payroll per month)

[LEX]

To be safe and avoid the risk of being assessed in the future, I suggest I close Nya properly ang business. On a lighter side, if the business is small, the BIR do not have sufficient staff to go after the small business. They are swamped with work.

[romeo]

HI.... If I'm leasing my private property to a corporation. what taxes do i need to pay?

[zyxel09]

hi nsa rice trading ako kailangan ba talaga mag lagay sa mga examiner? every year na lang malaki kuha sakin eh

[zyxel09]

edi ganun din hahaha

[Victorenox]

Ayos!

[rcache_03]

as an employee of one company, how do we have some tax exception. maybe discount from 30% to 12 % minimum?

[fallguy]

pwde ba mag inquire ang isang empleyado kung binabayaran ng employer nya ang mga tax nito, sa dinig ko di daw binabayaran ng company namin ang mga taxes, tapos sa mga empleyado lang din kumukuha ng pambayad ng sa tax ang mga managers

 

sa bir po, pls pakicheck ang company namin na global data management corporation

[japlog]

Follow up questions lang po about this issue. Meron po bang paraan to get out of it? Like pwede ba i-close un current business registration. Magparegister ng new name sa DTI then mag file na lang ng new business permit? Un sa friend ko kasi meron silang paupahan na apartment tapos may business permit nga pero di nag file sa BIR

 

Closure if you don't update the filing of the required returns. May penalty din of course. Kung yun katransact mo nireport na bumili or nagbayad sila sa yo pero di mo nireport, pwede ka din makasuhan ng tax evasion.

[uma]

Follow up questions lang po about this issue. Meron po bang paraan to get out of it? Like pwede ba i-close un current business registration. Magparegister ng new name sa DTI then mag file na lang ng new business permit? Un sa friend ko kasi meron silang paupahan na apartment tapos may business permit nga pero di nag file sa BIR

kapag nagpaclose ka ng business, may audit rin na mangyayri

Edited May 24, 2014 by uma