The Bureau of Internal Revenue (BIR) has intensified its tax enforcement on businesses operating in digital platforms as it conducted dialogues with e-commerce giants.
In a statement yesterday, the tax agency said the e-commerce companies presented their business model to BIR officials as well as identified their issues and concerns with respect to compliance with the bureau’s requirements.
The tax agency added possible areas of cooperation between the BIR and the said companies, such as exchange of information, were also explored.
Among those present were representatives of Lalamove Philippines Inc., Delivery Hero Philippines Inc. (foodpanda), Lazada Philippines Inc., MyTaxi.PH Inc. (Grab) and Shoppee Philippines Inc.
“Regardless of the manner of doing business or of earning income, taxpayers have the obligation to register, file their tax returns, and pay whatever taxes are due to the government. The conduct of business through a digital platform does not exempt anyone from his/her/its tax obligations under the law,” said Romeo Lumagui Jr., BIR commissioner.
The BIR said its special task forces (STFs), focused on the monitoring and verification of the tax compliance of online merchants, social media influencers and other businesses operating in digital platforms, have gathered information on the subject taxpayers and created a database of all online sellers of goods and/or services and social media influencers registered or residing within their jurisdictions, including properties being leased out by online lessors within their jurisdictions.
The tax compliance of said taxpayers who are already registered with the BIR are evaluated and subjected to Tax Compliance Verification Drive, if found to be non-compliant with the BIR requirements after verification of the taxpayer’s registration information in the BIR’s database.
The unregistered taxpayers shall be notified by the STF to register and pay voluntarily any unpaid taxes due on past transactions.
If the notified taxpayers do not register and pay their tax obligations within the time prescribed in the notice, the STF shall endorse the case to the concerned Regional Investigation Division or National Investigation Division for the conduct of preliminary investigation, which may warrant the issuance of Letter of Authority for the filing of a case and/or for other tax enforcement actions.
Aside from the foregoing, the BIR also collaborated with the Department of Trade and Industry to get the names of taxpayers engaged in online business activities that registered their business name with the department, for verification/matching with the BIR taxpayers’ registration database.
Taxpayers/business entities not found in the BIR registration database were likewise included in the conduct of Tax Compliance Verification Drive by the Large Taxpayers Service/Regional Offices. – Angela Celis
