On the Hoax Email Offering P150 Million Reward for information on Cosmetique Asia Silka Papaya's Tax Evasion

We would first like to deny any and all involvement in the alleged circulation of an e-mail stating that the BIR was offering a P150 Million reward for information on Cosmetique Asia Silka Papaya's tax evasion amounting to Php 1.5 Billion.

We suspect that the email hoax may have been unleashed by people whose aim is to discredit the information that we have published here.

We are not interested in any reward and we are doing this as a matter of principle, taking the side of tens millions of over-taxed and over-burdened Filipino salaried employees.

We see a grave injustice in the fact that multi-billion corporations like Silka Papaya get away with paying incorrect taxes, even as a sizable chunk (as much as 20 percent) of our income is taken away in the form of with held taxes.

According to its Financial Statements from 2007 to 2011, Cosmetique Asia Silka Papaya’s Net Sales amounted to P2,661,288,237.  But according to market research data from a reputable Market Research Firm, Silka Papaya's actual net sales amounted to P 4,490,682,515.

BUT SILKA PAPAYA PAID ONLY PHP 15 MILLION IN TAXES!!!


THAT'S JUST 1 PERCENT!!


The total estimated under payment of basic tax is around P350 Million and the total estimated potential deficiency in taxes including penalties may range from P600 Million to P700 Million.

But that's just basing the tax deficiency on market research data from large supermarket chains and if we were to include sales made through small stores, the total tax deficiency of Silka Papaya may go over some Php 1.5 Billion!

To add insult to injury, the COO of the company even brags about his Ducatis and shouldering his entire clan's trip to China!

As for BIR Commissioner Kim Henares, a women whom we admire and trust, we would like to help her out in stating that the maximum reward for people who provide information on tax evasion is just P1,000,000 or 10 percent of the revenues, which ever is lower.

You can find the Reveneue Regulation here.

Effectivity of BIR issuances

Effectivity of BIR issuances
by: Rachelle Ann C. Baod

TAXPAYERS and practitioners alike were recently bombarded by numerous and controversial rules and regulations from the Bureau of Internal Revenue (BIR). These issuances cover a wide variety of subjects and affect various types of taxpayers.

Most of these issuances did not even go through public hearing. It is more often the rule, not the exception, that taxpayers are caught unaware of the new requirements imposed upon them.

Not surprisingly, most taxpayers are now confused or ambivalent about how to implement the changes brought about by the new issuances.

On top of implementation and operational issues, taxpayers are also not clear as to when the issuances take effect and the periods covered by the issuances.

For instance, Revenue Regulations No. (RR) 14-2012 provided that the regulations shall take effect 15 days following complete publication in a newspaper of general circulation in the Philippines.

The effectivity clause, however, of RR No. 12-2012, Revenue Memorandum Circular (RMC) Nos. 77-2012, 75-2012, 73-2012 and 65-2012 provided that the same shall take effect immediately.

(Read Full Story Here)

Kim Henares, Tax Sheriff

Written By: Karen Lema, Reuters
Originally Posted in Interaksyon

The Philippines' chief tax collector is constantly thinking about targets. Sometimes she picks up an assault rifle and hits them.

In July 2010, newly-elected President Benigno Aquino III made Kim Henares commissioner of the Bureau of Internal Revenue (BIR) because he wanted a tough tax sheriff - and he got one who's taking aim at the country's legion of tax cheats.

Aquino gave Henares presidential guards, but the tax lawyer and accountant said "I should know how to shoot their guns, just in case".

The president, a gun enthusiast, gave her lessons at shooting ranges. The 52-year-old Henares, who packs a pistol, now can wield an M-16 and SG552 Commando.

Her no-nonsense approach appears to be helping pull in more tax, which is pivotal to meeting a government goal - getting rating agencies to award the Philippines investment-grade status.

Historically, tax collection has sometimes been a "let's make a deal" game between taxpayers and bribable officials.

Henares, BIR's deputy commissioner from 2003 to 2005, has been chasing evaders and crooked bureaucrats to clean up collection and the image of the bureau, perceived to be one of the country's most corrupt institutions.