HOW TO PASS THE BIR COMPLIANCE TEST ROGER C. LEE

HOW TO PASS THE BIR
COMPLIANCE TEST
ROGER C. LEE
Group Supervisor
Revenue District No. 82
Cebu City – South Distrct
Objectives
Taxpayers will be aware of the common violations
and adhere to the requirements of
OOKKEEPING
NVOICING
EGISTRATION
Tax Mapping Operation Mission
(Commissioner of Internal Revenue memo dated April 9, 2003)
1. To apprehend all business establishments not
issuing proper receipts as well as for violation
of all internal revenue laws, rules and regulations
in the conduct of business;
2. To collect such penalties, fines and surcharges as
are required under existing laws, regulations and
memo orders;
Tax Mapping Operation Mission
(Commissioner of Internal Revenue memo dated April 9, 2003)
3. To insure that all the violations discovered are
immediately corrected by business establishments
concerned; and
4. Seize all unauthorized invoices/receipts found in
the establishment including unregistered CRM or
POS machines.In the meantime that these seized
machines have not yet been released, nor duly
authorized receipts printed and for a period of not
less than two weeks, to require the use of BIR
Authorized Temporary Receipt/Invoice.
REGISTRATION VIOLATIONS
Failure to register the business with BIR
No RF annual/renewal payment
No Certificate Of Registration displayed
No ”Ask for Receipt” poster displayed
Registration Requirement
(Sec.236, NIRC)
1. Employees : Within 10 days from date of
employment (BIR Form 1902- TRU)
2. Change of Status : Within 10 days from date of
change (BIR Form 2305)
3. Business : Before commencement of business
and payment of any tax due
Individual - BIR Form 1901
Corporation - BIR Form 1903
Registration Requirement
3a. Sec. 248/249 – Failure to pay annual registration
fee is subject to penalties of 25% surcharge, interest
and compromise penalty.
3b. Sec. 258 – Unlawful pursuit of business. For each act
or omission, be punished by a fine of not less than
P5,000 but not more than P20,000 and imprisonment
of not less than six (6) months but not more than
2 years.
Registration Fee for Business
P500 to be paid upon registration for new registrants
and
for old registrants, on or before Jan.31 of the year (BIR
Form 0605) except:
1. Cooperatives
2. Employees
3. Individual Marginal Income Earners with
annual sales/services of not more than
P100,000
Registration Procedure
Registration is required for every separate or distinct
establishment or place of business including facility
types where sales transactions occur and warehouse
where inventory of goods for sale are kept before
commencement of business and payment of any tax due.
Registration Procedure
The Certificate of Registration shall be issued to the
applicant by the Revenue Office concerned upon
compliance with the requirements for registration
which shall be posted together with duly validated
Registration Fee Return at a conspicuous place in
the principal place of business and at each branch.
Cancellation of Registration
The required documents for submission:
•
•
•
•
•
•
Formal letter of termination/Notice of Dissolution
Duly accomplished BIR Form 1905
Unused Sales Invoice, ORs & other invoices
VAT returns and Withholding Tax remittances
Inventory of goods
Audited Financial Statements
Transfer of Registration
Whenever a VAT-registered person changes his
principal place of business from one revenue district
to another, both revenue district offices should be
notified by filing BIR Form 1905 within fifteen (15)
days from the date of such change was made.
If the change of address is within the revenue district,
the notification shall be filed with the same revenue
district office.
Penalties for Registration Violation
VIOLATION
1ST
OFFENSE
FAILURE TO
REGISTER
FAILURE TO PAY ANNUAL
REGISTRATION FEE
P 1,000.00
NO CERTIFICATE OF REGISTRATION
DISPLAYED
P 1,000.00
NO ”ASK FOR RECEIPTS” POSTER
DISPLAYED
P 1,000.00
2ND
OFFENSE
Invoicing Requirements
All registered persons shall for every sale or lease of
goods, properties or services, issue duly registered
receipts or sales or commercial invoices which must
show:
• Name, TIN, address of seller
• Date of transaction
• Quantity, unit cost and description of merchandise
or nature of service
• The name,TIN, and address of the purchaser,
customer or client for VAT registered taxpayers
• Invoice or receipt number
• Authority to print number & other receipt details
INVOICING VIOLATIONS & PENALTIES
VIOLATION
1STOFFENSE
2NDOFFENSE
FAILURE TO ISSUE RECEIPTS/
INVOICES
P 10,000.00
P 20,000.00
REFUSAL TO ISSUE RECEIPTS/
INVOICES
P 25,000.00
P 50,000.00
DUPLICATE COPY OF RECEIPTS IS
BLANK & USED ORIG COPY
DETACHED
P 10,000.00
P 20,000.00
USE OF UNREGISTERED RECEIPTS/
INVOICES
P 10,000.00
P 20,000.00
INCOMPLETE INFORMATION IN THE
RECEIPTS/INVOICES
P 1,000.00
P 2,500.00
INVOICING VIOLATIONS & PENALTIES
VIOLATION
1STOFFENSE
2NDOFFENSE
USE OF unregistered CRM,POS or
SIMILAR DEVICES IN LIEU OF
INVOICES/RECEIPTS
P 25,000.00
P 50,000.00
USE OF Computerized Accting System
(CAS) &/or components w/o PERMIT
P 25,000.00
P 50,000.00
FAILURE TO INFORM ANY
ENHANCEMENTS/MODIFICATIONS/
CHANGES IN PREVIOUSLY ISSUED
PERMIT to use CAS
P 25,000.00
P 50,000.00
Use of POS in TRAINING MODE IN
THEIR SALES TRANSACTION
P 25,000.00
P50,000.00
INVOICING VIOLATIONS & PENALTIES
VIOLATION
FAILURE to register CRM as CASH
DEPOSITORY ONLY
1STOFFENSE
2NDOFFENSE
P 25,000.00
P 50,000.00
CASH depository CRM is USED FOR
P 25,000.00
ISSUING SALES RECEIPTS/INVOICES
P 50,000.00
FAILURE to ATTACH/PASTE
ORIGINAL STICKER in the machine
authorizing the USE of CRM/POS or
similar device
P 1,000.00
FAILURE to ATTACH/PASTE
ORIGINAL STICKER in the machine
authorizing the USE of CRM for CASH
DEPOSITORY ONLY
P 1,000.00
INVOICING VIOLATIONS & PENALTIES
VIOLATION
1STOFFENSE
FAILURE to DISPLAY PERMIT issued
by the RDO for CRM/POS/or similar
device
P 1,000.00
FAILURE TO PROVIDE CRM with two
(2) ROLLER TAPES
P 1,000.00
2NDOFFENSE
FAILURE TO NOTIFY THE REVENUE P 1,000.00
DISTRICT OFFICE that the CRM/POS or
similar device is DEFECTIVE and has
been PULLED-OUT for REPAIR prior to
the TRANSFER of CRM/POS to OTHER
BUSINESS LOCATION
USE of CRM/POS or similar device in a
PLACE OTHER THAN SPECIFIED IN
THE PERMIT.
P 25,000.00
P 50,000.00
BOOKKEEPING VIOLATIONS
Failure to register Books of Accounts
Failure to keep Books of Accounts at the place of
business
Failure to record daily entries in the registered Books
of Accounts
Books of Accounts
(Sec. 232, NIRC)
1. New Business – must be registered before
commencement of the business or upon
registration.
2. Existing Business – must be registered on or
before Dec. 31 of the current year.
3. Late registration – shall be subject to a minimum
penalty of:
Individual (Non-VAT P500; VAT P1,000)
Corporation (Non-Vat P1,000; VAT P2,000)
BOOKKEEPING VIOLATIONS &
PENALTIES
VIOLATION
FAILURE to register BOOKS OF
ACCOUNTS/CASH REGISTER
MACHINE´S SALES BOOKS
AMOUNT
Subject to graduated rates
(P200-P50,000) based on
gross sales
FAILURE TO KEEP BOOKS OF
ACCOUNTS AT THE PLACE OF
BUSINESS
FAILURE TO MAKE ENTRIES IN THE
REGISTERED BOOKS OF ACCOUNTS
OTHERS (refer to Section 275 of NIRC)
P 1,000.00 for each act or
ommission
File & Pay your taxes on time
KIND OF TAX
FREQUENCY
BIR FORM
1.
Monthly
Quarterly
2550M
2550Q
20th day of the following month
25th day of the following month
2551M
20th day of the following month
1601C
10th day of the following month except for
the month of DEC remittable not later than
JAN.15 of the following year
-do-
VAT
2.
Non-VAT
Monthly
(Percentage)
3. Withholding Tax
Compensation
Monthly
Expanded
4.
5.
Income Tax
(Individual
Income Tax
(Corp/Part)
Monthly
1601E
Quarterly
1701Q
Yearly
Quarterly
Yearly
1701
1702Q
1702
DEADLINE
1ST Qtr – Apr 15
2nd Qtr - Aug 15
3rd Qtr - Nov 15
Apr 15 of the following year
60 days after the end of the quarter
15 days after the 4th month of every
calendar year or fiscal year
Schedule of Submission of Annual
Information & Reports
Kind of Report
Deadline
• List of Inventories
January 30
• Annual Information return of taxes withheld from Income
(Expanded and Final)
Form 1604C – Compensation
January 31
Form 1604E – Expanded
March 1
Form 1604F – Final
January 31
BIR Compliance Test
Questions
1. Is your main business establishment or branch registered with the BIR?
2. Do you display the Certificate of Registration & ”Ask for Receipt” Poster?
3. Have you paid the annual Registration Fee or renewed your business?
4. Are your receipts/invoices registered with the BIR?
5. Do you issue receipts for every sale of goods or services?
6.Does your receipt contain the necessary & prescribed information?
7.Are your Point Of Sale/Cash Register Machines registered with the BIR?
8.Do your POS/CR machines have the authority to use sticker?
9.Do you display the permit to use POS/CR Machines issued by the BIR?
10.Do you inform the BIR if your defective POS/CR Machines are replaced?
11.Do you have a Permit to use Computerized Accounting System?
12.Are your Books of Accounts/CRM sales books registered with the BIR?
13.Do you keep the Books of Accounts at the place of business?
14.Do you make entries in the registered Books of Accounts?
Y
N
HOW YOU CAN HELP INCREASE
TAX COLLECTION
For Corporations and Enterprises:
1. Pay correct taxes regularly and on time
2. Encourage officers and employees to pay correct
taxes
3. Organize tax forum/briefings for officers &
employees
4. Produce & disseminate tax information,
education and communication materials to
workforce and the public
5. Issue receipts for every business transaction
HOW YOU CAN HELP INCREASE
TAX COLLECTION
6. Include tax information in company newsletters
and other publications
7. Sponsor broadcast infomercials or developmental
plugs include tax duties and obligations in the
company code of conduct
8. Integrate tax-related topics in the company’s
regular training programs