Saturday, April 26, 2008 [ manilatimes.net ]
By Chino S. Leyco, Reporter
THE Bureau of Internal Revenue (BIR) said Friday that it will start auditing big real-estate developers in the country to get income figures for tax purposes.
In a statement, the bureau said it met executive officers and representatives of large taxpayers in the real estate industry and discussed issues and problems that hamper tax collections.
Commissioner Lilian Hefti said the industry players should make clear their management and accounting reports for purposes of reconciliation to enable the BIR to get exact tax figures.
Ayala Avenue Joint Venture, Araneta Center, Inc., Avida Land Corp., Ayala Land Inc., Cityland Development Corp., Fil Estate Realty Corp., Filinvest Development Corp, Rockwell Land Corp., San Miguel Properties Inc., Shangri-La Plaza Corp., Shoemart Plaza Corp., Shoemart Inc., SM Investments Corp., Sta Lucia Realty and Development Inc., Robinsons land Corp., First Asia Realty Development Corp., Gonzalo Puyat and Sons Inc., Landco Pacific Corp., Manila Memorial Park Cemetery Inc., Marina Square Properties Inc., and Megaworld Corp. attended the said meeting.
The BIR earlier issueda Revenue Regulation No. 4-2008 to take effect on May 3, amending the venue for the payment of capital gains tax, creditable withholding tax, and documentary stamp tax due on transfers of real properties owned by taxpayers classified as large taxpayers.
“These regulations aim to provide an efficient service to large taxpayers with respect to their real-estate transactions by transferring the venue for filing the tax returns and payment of the taxes including securing of Tax Clearance Certificate, Certificate Authorizing Registration to the concerned Large Taxpayers Service,” Hefti said.
Before the new regulation, real estate transactions of large taxpayers on a “cash basis” or “deferred-payment sale not on installment plan,” the aforesaid tax liabilities were filed and paid to the regional district office where the real property is located. The same applied when there is already full payment of the full consideration of the real property bought under installment basis.
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