BIR tells more than 100 lawyers to submit tax payment proof

CEBU CITY—The Bureau of Internal Revenue (BIR) has asked more than 100 lawyers in Cebu and Bohol provinces to submit proofs of tax payment as the bureau continues enforcing its campaign against tax evaders.

The lawyers were asked by the BIR to submit books of accounts and other documents, like official receipts that they issued to clients and audited financial statements.

“These lawyers were randomly chosen. But we will eventually send the same communication (sic) to all lawyers here,” said Hermeno Palamine, BIR director for Central Visayas.

Palamine said this was the first time that the BIR was running after lawyers and other professionals in the hope of increasing tax collection.

The move came after the BIR noticed a low rate of tax payments among lawyers in Cebu.

The BIR said only 52.7 percent of 805 registered self-employed lawyers in Cebu filed income tax returns while only

2 percent paid value-added taxes.

“There are those who pay taxes but the amount they give doesn’t actually reflect what they are supposed to give to the government. Others, on one hand, do not pay taxes at all,” said Palamine.

“Would you believe that there are veteran lawyers here who pay lesser taxes than rank-and-file employees?” he said.

Palamine, also a lawyer, said the BIR would file charges of tax evasion against lawyers who would not submit the documents being required by the bureau.

“This is a friendly approach,” said Palamine.

The lawyers are also required to submit proofs of payment of monthly tax returns, proofs of annual registration as lawyers, previous years’ income tax returns, certificates of compensation payment or tax withheld for compensation.

Lawyer Jonathan Capanas, dean of the University of San Jose-Recoletos’ College of Law, said the BIR’s move sent a “chilling effect” to all taxpayers, not just lawyers.

“For those with tax deficiencies, it’s really a cause for concern,” he said. “So far, I have not received the BIR notice. It’s a question of factual basis of any tax assessment,” he said.

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