A FINANCE executive clarified that the Bureau of Internal Revenue (BIR) and the Security Exchange Commission (SEC) do not require submission of compilation of certificates that the Board of Accountancy (BOA) may require the corporate taxpayers and self-employed individuals.
During the Tax Campaign Kickoff held at the Davao Convention Center on Monday, March 13, Antonette Tiokno, undersecretary for the Revenue Operations Group of Department of Finance (DOF), said the compilation certificate is a very complex requirement as it needs to be signed only by an accredited accountant who had completed at least 120 hours of paid seminars in the year and should not be the company’s auditor.
“Having to comply with a compilation certificate is really an additional burden to companies and taxpayers. For those accountants there, the BIR is not going to need it neither will the SEC. We know that it has no value and it has an additional burden to the SMEs and all the taxpayers,” she said.
Tiokno said the department is exerting efforts to reduce red tape for all the sectors under them including BIR, SEC, and the Bureau of Customs.
“The BIR had been issuing regulations since the start of this administration to simplify its processes. We keep trying to improve its processes at the BIR level,” she said.
The undersecretary said she understands that one of the burdens that the taxpayers face is the red tape when processing documents for government offices.
Tiokno stated in particular the compilation of certificates that is being submitted by corporate and self-employed taxpayers together with their financial statements and income tax returns (ITR). She said this may be asked by the BOA but the BIR and the SEC do not need it.
“For the filing of the ITRs this year, the BIR recently issued a revenue memorandum circular stating that only those requirements that need to be attached to the ITR, as required in the tax hold, need to be submitted.
So, for those corporate tax payers and self-employed individuals, if you need to attach financial statements (FS) to your ITR, it’s the regular FS only with the auditor’s certificate and the normal attachments,” she said adding they have raised the concern to the Philippine Regulatory Commission already.
Tiokno added this effort of the DOF to reduce red tape, together with the massive tax reform program, is in connection with the bigger goal of reducing the poverty rate from the current 21 percent to 14 percent.
She appealed to all the taxpayers of the Davao Region to cooperate with BIR and to file and pay taxes on time to avoid any more hassle. (JPA with DOF)