A new memorandum from the Bureau of Internal Revenue (BIR) that is applicable to buyers and sellers of property was issued under the leadership of Commissioner Kim Henares who is to leave her post in less than a month for the new administration.
Revenue Memorandum Order 24-2016 aims "to ensure the tax compliance of the parties" involved in an alienation of property.
"Parties to the said transactions may be subjected to an audit or investigation to determine their capacity to hold and/or acquire properties," the June 7 order stated.
"In all cases (however), verify...that the parties (seller/assignor/transferor and buyer/assignee/transferee) regularly files returns and report income sufficient to establish financial capacity," it added.
The said memorandum deals with transactions in connection with payment of capital gains tax on non-traded stocks and property, estate tax, donor’s tax, expanded withholding tax, among others.
Tax Management Association of the Philippines President Benedict Tugonon said that the above-mentioned memorandum is both unjust and unfair to taxpayers.
"Commissioner Henares should refrain from issuing issuances now at this point in time, as a courtesy to the new administration," Tugonon said in an interview.
"We will strongly recommend to the next administration to include (this) among the issuances that should be withdrawn or canceled," Tugonon added.
Commissioner Henares has yet to say her thoughts on this.
Earlier, the tax commissioner said that the taxes liabilities of incoming senator and world champion boxer Manny Pacquiao ballooned.
Commissioner Henares said that it was already three (3) years ago when the BIR assessed the outgoing Sarangani representative a tax deficiency of Php. 3.2 billion for income earned in 2008 and 2009, including his penalties.
“He sued us, we did not sue him. Since then, the penalties have been increasing,” Henares said, adding that the move of Pacquiao in suing the bureau did not have the effect of freezing his tax liabilities.
For full details of the Memorandum Order, please check below:
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