Taxpayers urged to declare true income

The Bureau of Internal Revenue (BIR) is urging all taxpayers in the country to declare their true earnings in calendar year 2007 when they file their income tax returns (ITRs) by April 15, 2008.

The BIR said stiff penalties will be imposed and possible criminal charges filed against them.

“We are appealing to all taxpayers, individual and corporate, to declare their correct gross income and to refrain from making overstatements of their deductions,” said BIR Deputy Commissioner Nelson Aspe.

As the BIR has already addressed several issues and problems in the collection of taxes, the tax agency has warned taxpayers not paying the proper taxes.

 As to taxpayers who continue to make mockery of tax laws by claiming terrific deductions from their gross income receipts, the BIR said that it is pursuing a number of cases regarding this violation.

 Aspe also said practitioners who are now busy preparing ITRs for their clients must ensure that material facts are accurately and completely presented.

 While their primary function is to express an opinion on the financial statements they certify, these practitioners must advise their clients on matters of tax liabilities, Aspe said.

The BIR has noted that some real estate lessors are claiming travel expenses incurred abroad as part of their deductions despite non-correlation of the travel expenses incurred with the business operation itself.

 Furthermore, Aspe said the BIR is monitoring professionals such as doctors, public accountants, lawyers, engineers and board directors who are receiving comparably hefty fees but have claimed unreasonable deductions when they file their ITRs.

“Let it be emphasized that the taxes withheld by their clients/payors are not final, thus, there is still a need to declare the income in the ITR,” Aspe said.

The BIR said taxpayers have until April 15 to file their income tax returns.