Henares unyielding on calls to scrap rule on rate posting in clinics, law offices

BIR Commissioner Kim Henares. INQUIRER FILE PHOTO

MANILA, Philippines – Bureau of Internal Revenue Commissioner Kim Henares on Thursday said the posting of professional rates in clinics and law offices are legal and appropriate, especially for transparency.

In an interview with Radyo Inquirer 990AM, Henares said lawyers, doctors and other professionals should welcome the proposal as it would also help them better communicate with clients.

The Integrated Bar of the Philippines (IBP) earlier opposed the plan because it is allegedly in violation of their rules prohibiting self-promotion and advertisement.

Meanwhile, the Philippine Medical Association complained that clinics “will look like restaurants with menus outside.”

Henares, however, said they are not requiring professionals to post rates outside their offices.

“It’s like going to a bank. They have a small board [announcing] today’s exchange rate [and loan interests],” she said.

She also said it is the same as negotiating with a prospective client, with lawyers announcing their rates before they are hired.

“If you want, you can place it in a picture frame…on the table of your receptionist so patients will immediately know how much you are charging,” Henares said, referring to doctors.

The BIR chief emphasized that their proposal was all about transparency.

“You talk about noble professions…We are actually solving one of your problems. You don’t have to make your profession into a marketplace by haggling about charges. It is even more degrading when you are…negotiating,” she said.

Henares said that was one of her problems when she was still practicing as a lawyer.

She said they will only look into the said organizations’ arguments “if it is a valid, rational, legal objection.”

“Pero yung sasabihin lang sa amin na noble yung profession, para naman naming ginagawang negosyo…Ang sagot ho doon, ginawa nyong negosyo. Nagcha-charge kayo eh. The moment you charge for your services, it’s now a business. So you will be regulated as a business. (But what they were saying about noble profession, that we are making them appear as businesses…My answer to that is they made it into a business. They are charging [clients]. The moment you charge for your services, it’s now a business. So you will be regulated as a business),” she said.

Henares said the BIR will soon be issuing a revenue memorandum circular detailing the posting of professional rates. They will just have to decide when it will be implemented, either the last quarter of 2013 or January 2014.

The BIR Commissioner said they are not singling out doctors and lawyers but based on their data, those in the professional sector have low tax compliance.

Henares said there are 1.8 million registered professionals and sole proprietors but only around 400,000 to 500,000 individuals file their tax returns.

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