The Market Monitor Minding the Nation's Business
The Bureau of Internal Revenue (BIR) will continue to investigate big property developers after the agency received reports that they failed to remit the correct taxes to government.
The BIR made the announcement following a directive from Finance Secretary Carlos Dominguez to continue its tax review of real estate developers. Dominguez gave the BIR the authority to conduct the tax examinations through regular teams like the BIR’s Large Taxpayers Service (LTS) to avoid confusion on mandates and redundancy in roles.
Sec. Dominguez instructed the BIR to suspend the revenue special orders (RSOs) and operation memoranda (OMs) creating special audit groups for property giants and multi-level marketing.
The agency also called off OMs setting up audit groups for Philippine offshore gaming operators and e-sabong.
Dominguez said functions given to the special audit task force groups are in conflict with the duties of pertinent BIR offices, such as the LTS. The audit work undertaken by the suspended special audit teams will be continued by the regular divisions.
Based on Dominguez’s letter of instructions, the audit through various RSOs have created confusion. Further, the letter of instruction emphasized that the main teams in the BIR had the real jurisdiction on this issue.