The BIR should listen to business leaders!!!

Did you know what business people talk about in coffee houses these days? They’re talking about the Bureau of Internal Revenue (BIR). Mind you, I’m not talking about the big business conglomerates here… I’m referring to small and medium scale businessmen who are indignant at the BIR.

Yes, we’ve been getting angry reports about the unexpected albeit unilateral ruling by the BIR that suddenly demanded a change of Cash Invoices, which BIR Commissioner Kim Henares apparently wanted to, changed and put in a deadline for this on June 30 without any public hearing. Failing to do so means a P50,000 fine and this is very steep especially for small and medium scale businesses who more often than not purchase these invoices in bulk to save money.

As I was writing this piece, my good friend Nino “Bonito” Padilla, top broadcaster of DZRH and Aksyon Radyo and DyRC Cebu wrote in his Facebook saying, “Try to figure this out: Sometime this year, BIR Commissioner Kim Henares ordered revocation of all the printed unused OR not later than May 2, 2013 and obliged to print new OR with BIR templates — the order reached the BIR Provincial Officer for implementation only on May 20, 2013. Here’s the catch: all business establishments that did not comply w/ the order on May 2 will be fined. Is that fair?”

I asked Nino if he’d like for me to reprint what he wrote in his Facebook… and he said yes. Frankly speaking, I asked him that question because more often than not, people in the media do not want to question the BIR because they might be harassed for making such public statements against the BIR. But apparently Nino isn’t afraid and so why should I be? I have nothing to hide from the BIR. Mind you, the Obama government has recently been caught “using” the Internal Revenue Service (IRS) against its critics like the Tea Party and even the Pro-Life Groups… let’s hope it won’t happen here.

Even my wife Jessica and my daughter Katrina who both work for Sun Life Financial are mad at the BIR for they have already paid the P1,000 fine. Again we ask, is this fair? What’s really happening within the BIR? Don’t they care for the small and medium scale businesses? I thought as Pres. Benigno Aquino III said that his government would be one of consultation? Well it is crystal clear that there was no consultation with the business groups when the BIR implemented this order. I also got an email about this issue. Here’s the email in full:

“Mr. Avila, I just want to rant off about the stupid BIR rule to change our Cash Invoices to a new style. Most of us medium sized businesses use book-bound cash slips and we order them by 2000 pieces because it cost less per booklet. I still have about 800 booklets. The deadline is June 30, 2013.

I definitely cannot use up the 800 booklets. Now the BIR wants us to print new ones. If caught using old invoice, there’s a fine of P1,000 per invoice. That’s really stupid. What’s more? They want us to turn over the unused invoices as if they have the facilities to handle that junk paper. I’m very much aware of global warming. Paper is from wood. But I guess P-Noy is not for earth friendly policies. What a waste of paper! What is the BIR going to do with the papers? Since I paid for it, I might as well get some money back by selling the paper to a junk dealer. 

Worse still, the changes they made are mere cosmetic. If BIR wants us to put those additional words, could they not just require business owners to rubber stamp the words they want to appear in the invoices? I hope you will mention this topic in your column. I am not the only one affected. My accountant just attended the BIR briefing. There’s one company that had 1,500 cases of unused invoices. But he didn’t say how many booklets per case. Everyone was angry. Please ask your accountant for more information, also your printer.

In the seminar, the president of the Printers Association said there are more than 200 printers in Cebu City, but only 25 are accredited. All invoices have to be printed by accredited printers. The president said the 25 printers couldn’t serve everyone before the deadline. Thanks. Yolanda Naranjo.”

A quick check with the officers of the Cebu Chamber of Commerce & Industry, Inc. (CCCI) specifically vice-president Antonio Chiu who revealed to me that CCCI president Lito Maderazo sent BIR Honcho Kim Henares a letter last April 30 appealing for their members. This was copy furnished to Philippine Chamber of Commerce & Industry, president Atty. Miguel B. Varela.

Vice-president Chiu also sent me a letter from Kim Henares to Atty. Varela dated May 24 denying the chamber’s request. I’m not sure if the Cebu Chamber sent only one letter or that the PCCI had a separate letter. What is clear here is that the BIR refuses to listen to the voice of business leaders. At this point, I dare say that PCCI, the Cebu Chamber and all business organizations in this country petition Pres. Aquino to reconsider the stand of the BIR… until their booklets have all been exhausted.

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