Vol. XXI, No. 195 [ Business World Online ]
Tuesday, May 6, 2008 | MANILA, PHILIPPINES
LARGE TAXPAYERS have start-ed reporting their real estate transactions to the Large Taxpayers Service (LTS) of the Bureau of Internal Revenue (BIR) as part of an effort to enable the agency to closely monitor tax payments in the transfer of huge properties.
Revenue Regulation 4-2008, which took effect yesterday, calls for big taxpayers to file tax returns and payment of capital gains tax, creditable withholding tax, and documentary stamp taxes on real estate property transfers with the LTS.
Under the old BIR rule, taxes on such transactions were filed with the Revenue District Office where a real property is located.
"The collection performance of the RDO as well as the LTS Office can now be gauged more realistically inasmuch as the significant tax collections accruing to real estate transactions of these large taxpayers are now effectively consolidated and fully accounted for by the same LTS office having jurisdiction over their principal place of business," the BIR Revenue Regulation read.
Meanwhile, a ranking executive of one of the major property firms which met with BIR Commissioner Lilian B. Hefti two weeks ago said they are ready to cooperate with the bureau’s thrust to ensure that correct taxes are paid.
"We will comply with whatever tax regulation will be put out. We are fully transparent and we are audited every year, so this is nothing new to us," said Alfonso B. Reyes, corporate spokesman of Ayala Land, Inc.
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