THE DENIAL AND MOUSE-TRAP TACTICS OF BIR OFFICERS

Last week, a client approached facebook.com/EmelinoTMaestro. She asked if the vouchers that she issued to her borrowers can be used as evidences of loan agreements.

Yes, a voucher, according to RMC 48-2011, can be considered as a loan document. Thus, it is subject to documentary stamp tax (DST). ETM reminded that either she or her borrowers should pay the corresponding DST attached thereto.

True to her duty, she requested ETM to compute her DST. Although her request entailed a payment of ETM's professional fee, ETM declined to do the computation for he doesn't want her client to incur an additional cost even if it will mean that he is depriving himself and his family of an easy money making and a decent living. Instead, ETM encouraged her to go to the BIR-Plaridel where the revenue officer of the day (OD) is mandated by law to compute for her the DST that she failed to pay on time.

When she presented the vouchers to the OD, the OD refused to help her for a voucher, as the OD reasoned out, can't be used as an evidence in computing a deficiency DST. THIS IS A DENIAL TACTIC. It is designed to shoo you away after you have already exposed yourself and company to a tax violation penalised by imprisonment (tax evasion). If you fell into this trap, you will be surprised that a notice of investigation for being a TAX EVADER will be served to you in the nearest future. Don't fall into this trap that is called legally as a MALFEASANCE.

Having a presence of mind, she called ETM and explained to him what happened. ETM requested her to give the phone to the OD. After a small chat, the OD agreed to prepare the computation. After the OD drafted her computation, she gave it to her (ETM-client) and asked her to copy-paste the information that she wrote in a yellow paper to the actual tax return. THIS IS A MOUSE-TRAP TACTIC. It is designed to use your handwriting to cover up a potential miscomputation and miscalculation of the deficiency DST. There is reason to believe that the tax due per yellow paper is totally wrong. So in case that you copy the info per yellow paper and paid the amount that you copies, then, it is you who made the mistake and not the OD. In this case the DST due, as computed by the OD is 3,000,000 pesos.

Doubtful, ETM-client called up ETM again and story-told what happened. Now, ETM was so pissed off. Because, the rule is that the OD shall prepare the tax return using her own handwriting and placing her name and signature therein in order to show that the tax return was made by the OD and not by the client of ETM. ETM, via phone, talked to the immediate boss of the OD, a group supervisor (GS) and asked him to cite the BIR issuance that allowed the OD to do what she is doing. As their incompetence set in, the GS just cited a provision of the Tax Code that is irrelevant to the situation. So, to make the discussion easy, ETM requested his client to print and show RMC 48-2011 to these two ODs . Without a notice, ETM called up the RDO but he was not present at that time so ETM call was taken by her secretary. ETM told the secretary of what transpired and issued a warning that if the OD would continue to fail and refuse to prepare a tax return via her own handwriting with her name and signature therein, then, ETM will file a criminal case against her at the Office of the Ombudsman.

After thoroughly reading the RMC 48-2011, the OD agreed to prepare and sign the required tax return and by this time, the amount of deficiency DST went down to 800,000 pesos from 3,000,000 pesos (yellow paper).

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IF YOU WANT TO BE A TAX CONSULTANT EVEN IF YOU ARE NOT A LAWYER, A PREVIOUS EMPLOYEE OF THE BUREAU OF INTERNAL REVENUE OR A GRADUATE OF ACCOUNTANCY, ETM is giving a FREE FRANCHISE to help you start your own business...

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October 23, 2015