Following a two-day tax compliance verification drive (TCVD), the Bureau of Internal Revenue (BIR) amassed a list of prevalent tax compliance issues identified during visits to 44,611 business establishments across the nation.
Notable findings from the TCVD highlighted instances of non-compliance, including businesses failing to display their Certificate of Registration and the required "Notice to Issue Receipt/Invoice (NIRI)," as well as neglecting to register their books of accounts.
Furthermore, certain establishments were observed to be in violation by not maintaining their books of accounts at the designated place of business and by failing to make daily entries in their registered books of accounts.
Additional violations identified during the TCVD encompassed the use of unregistered receipts/invoices and unregistered Cash Register Machines and Point-Of-Sale Machines, prompting immediate attention from tax authorities.
BIR Commissioner Romeo D. Lumagui Jr. said that the primary objective of the TCVD is to educate taxpayers on complying with tax laws and regulations, reflecting the bureau's commitment to fostering better tax compliance practices among businesses.
BIR reveals common tax violations of businesses
At a glance
The Bureau of Internal Revenue (BIR) vowed to focus on addressing the common tax violations frequently encountered by business establishments.
After conducting a two-day tax compliance verification drive (TCVD), the BIR compiled a list of prevalent tax compliance issues observed during visits to 44,611 business establishments nationwide.
Key findings from the TCVD include cases of non-compliance, such as businesses failing to display their Certificate of Registration and the required "Notice to Issue Receipt/Invoice (NIRI)," and neglecting to register their books of accounts.
Moreover, some establishments were observed to be in violation by not keeping their books of accounts at the designated place of business and failing to make daily entries in their registered books of accounts.
Other violations identified involved the use of unregistered receipts/invoices and unregistered Cash Register Machines and Point-Of-Sale Machines, prompting immediate attention from tax authorities.
BIR Commissioner Romeo D. Lumagui Jr. said that the aim of the TCVD is to educate taxpayers on complying with tax laws and regulations.
"We are here to educate taxpayers of their tax obligations, not to penalize them,” Lumagui said in a statement on Monday, Jan. 22.
“The BIR believes that a taxpayer that is informed of his tax obligations will comply with it. Education leads to compliance. Improved services leads to compliance.,” he added.
The TCVD took place from Jan. 18 to 19, covering all Revenue Regions and Revenue District Offices in Luzon, Visayas, and Mindanao.
Over the course of the two-day operation, BIR examiners nationwide visited business establishments, with a primary focus on identifying and rectifying tax compliance issues.
"The BIR itself reached out to our taxpayers to teach them the correct processes for their businesses. The BIR is prepared to serve and educate our businessmen, whether they are long-established or newly registered,” Lumagui said.
The TCVD aims to help businesses understand and meet their tax obligations, the BIR chief said.
For this reason, Lumagui has strongly encouraged business establishments to fix any issues identified, ensuring they comply with tax laws.
“The BIR remains dedicated to assisting taxpayers in navigating the complexities of tax regulations for the benefit of the business community,” he said.