BIR warns taxpayers on transfer of their business

The Bureau of Internal Revenue (BIR) has warned taxpayers transferring the place of their business to inform the Revenue District Offices (RDOs) where they are registered to avoid any problem with the tax agency later on.

BIR deputy commissioner for operations  Nelson Aspe said it is the duty of the RDO to transfer the accountabilities of the taxpayer to the RDO where the taxpayer is transferring.

However, Aspe said tax investigation pending with the former RDO shall continue and shall be pursued by the previous district office.

The BIR made the clarification after as it noted numerous cases of taxpayers who have stopped filing tax returns after transferring their place of business.

Aspe said the filing of tax returns and payment of taxes to the new RDO shall commence at the time of the approval of transfer and that the transfer during the interim period shall only be officially effected in the records of the bureau by the end of the year.

This way, Aspe said, there would be no distortion in the respective collection goals of the affected RDO brought about by such transfer. Under this circumstance, the taxpayer may be allowed to physically transfer its business to the intended RDO.

However, the filing of its returns and payment of taxes shall still be made to the old RDO until the end of the year.

The BIR has been stepping up efforts to improve tax collections and boost state coffers. This year, it is tasked to collect P854 billion. Last year, it was able to collect P711 billion, short of its revenue goal of P765 billion.