The Bureau of Internal Revenue (BIR) has launched a “friendly” Tax Compliance Verification Drive (TCVD) this week to promote taxpayer education and encourage voluntary compliance.
In a statement yesterday, the BIR said that on the first day of the campaign last February 10, more than 24,000 establishments across the Philippines were visited as part of the drive.
Instead of imposing penalties, the BIR said it aims to assist taxpayers during the week-long TCVD, by explaining their obligations and how they can comply with tax regulations.
“The purpose of this TCVD is solely to educate businesses on their tax obligations. No penalties will be imposed,” BIR Commissioner Romeo Lumagui Jr. said.
The tax agency said some of the most common issues included businesses not being officially registered, not keeping their books of accounts at their place of business and not displaying their certificate of registration.
Additionally, some taxpayers had not yet converted their official receipts into the required sales or service invoices under the Ease of Paying Taxes Act.
According to the BIR, the top five types of establishments visited were retail stores, restaurants, healthcare providers, automotive shops and construction supply stores.
These businesses received advice on how to address their compliance issues and were given time to make the necessary corrections.
The BIR said taxpayers were encouraged to ask questions and seek clarification about their tax responsibilities.
“We are here to educate our taxpayers, not to penalize them. Education leads to compliance. Improved services lead to compliance. Our revenuers from Luzon, Visayas, and Mindanao will be visiting businesses to explain the fundamentals of taxation to everyone,” Lumagui said.
