BIR fielding out personnel to check on companies’ year-end inventories
Posted on December 27th, 2009
The last week of the year will see the field personnel of the Bureau of Internal Revenue (BIR) going out and visiting businesses and their warehouses. The revenue agency will be deploying its personnel to check out and monitor taxpayers’ year-end inventory.
BIR Commissioner Joel Tan-Torres issued Revenue Memorandum Order No. 40-2009, which seeks to validate the correctness of inventory lists for taxable year 2009.
Tan-Torres said, “We can expect our people to celebrate the New Year in warehouses to check inventories of taxpayers. The best way to ensure that the inventories are properly reported by the taxpayers is for our revenue officers to be present during the conduct of the annual inventory taking.”
In line with the RMO No. 40-2009, the BIR Commissioner ordered revenue offices in a separate memorandum, to augment the pool of assessment offices.
The takeoff point of the inventory, according to the order, will be the financial statements and inventory lists for taxable year 2008, which were submitted to the revenue district office.
Revenue district offices will be preparing a list of taxpayers whose peso value of ending inventory is 50 percent more than its declared sales for the year. With the exception of car dealers, excise taxpayers, drugstores, supermarkets, groceries, and other taxpayers who maintain fast-moving goods.
The agency has authorized its regional tax officials last week to move their personnel to new assignments as part of its strategy to improve collection efficiency and tax administration.
The BIR missed its P810-billion target last year. It was only able to collect P778 billion then. This year, the tax bureau is required to collect P798.5 billion and P875.1 billion next year.
Officials of the agency said that this year’s goal would be missed because of various tax cuts and a slower economy. The government has also lowered the bureau’s goal next year.
