• BIR misses June collection target

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    The Bureau of Internal Revenue (BIR) missed its P100.51-billion collection target for June 2013.

    In a statement, the BIR said that it only collected P88.76 billion in tax revenues for the month, however, the said figure was higher by P7.42 billion, or 9.12 percent more than collections made a year ago.

    It added that collections from BIR operations amounted to P86.28 billion, P7.37 billion, or 9.34 percent more than collections made in June 2012.

    Meanwhile, collections from non-BIR operations increased by 1.94 percent to P2.48 billion, P47.26 million higher compared to the collections a year ago.

    The bureau also said that collections by the regional offices went up by 12.48 percent to P31.53 billion, or P3.50 billion more than the collections made in June 2012.

    Collections by the large taxpayers service were also up by 7.61 percent to P54.75 billion, P3.87 billion higher compared to the collections a year ago.

    First-half collection
    Furthermore, from January to June, the BIR collection also increased by 13.92 percent to P593.71 billion, or P72.55 billion more than the collection made in the same period in 2012.

    Collections from BIR operations went up by 15.29 percent to P574.84 billion, P76.25 billion higher compared to the collections made in the first half of 2012.

    However, collections from non-BIR operations amounted to P18.87 billion, P3.70 billion, or 16.4 percent less than collections made in the same period a year ago.

    On the other hand, the BIR said that its collections of excise tax on sin products for the first semester of 2013 reached P38.54 billion, higher by P12.15 billion, or 46.06 percent more than the collections made in the first semester of 2012.

    Excise tax collection from tobacco products amounted to P22.38 billion, or an increase of P7.77 billion, or 53.14 percent.

    Meanwhile, excise tax collection from alcohol products amounted to P16.16 billion or an increase of P4.39 billion, or 37.27 percent.

    Meanwhile, the BIR through a new rule amended the requirements for deductibility of certain income payments under Section 2.58.5 of Revenue Regulation (RR) 2-98.

    Issued on July 12, RR 11-2013 states that any income payment shall be allowed as a deduction from the payor’s gross income only, if it is shown that the income tax required to be withheld has been paid to the bureau in accordance with Sections 57 and 58 of the Tax Code.

    “In other words, payment of withholding tax was made on time. But as presently worded, Section 2.58.5 of RR 2-98 as amended, provides certain exceptions where a deduction will also be allowed even if no withholding tax was made on time, that is, made only during audit and investigation,” the tax bureau stated.

    The BIR noted that the new regulation removes such exceptions, not being expressly provided for by the Tax Code.

    The RR 11-2013 also maintains the rule that any income payment shall be allowed as a deduction, only if it shown that the income tax required to be withheld has been paid to the bureau in accordance with Sections 57 and 58 of the Tax Code.

    It also said that the new regulation is an addition to the other requirements under the Tax Code.

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