There are quite numbers of businesses in the Philippines that were subject to tax mapping penalties because of violations. I’m sure you don’t want to pay an extra amount of cash to the BIR because you didn’t read this. This article provides different BIR tax mapping violations and the number of penalties. Here are things that you must know before the tax mapping occurs in your area. Make sure to read this to avoid compromise penalties and criminal liability. Let’s start to know what is tax mapping in the Philippines.
What is tax mapping? Or what exactly is the meaning of this tax mapping? Well, it is a surprise visit of the BIR staff to the establishment. The objective of this tax mapping in the Philippines is to inspect compliance of business registration and other rules and regulations of the Bureau of Internal Revenue. It is also commonly known as BIR tax compliance or “Oplan Kandado”.
This tax mapping BIR will help them to monitor and to identify those owners who are evading from paying taxes. Do you know what will happen if you will be caught that your business is not legally complying the requirements? Let’s know the tax mapping system.
Any BIR representative does this tax mapping at random dates and places. Non-compliance with the BIR regulations is subject to the penalty from one thousand pesos (1, 000) up to fifty thousand pesos (50, 000) depending on the nature of violations.
Some non-compliance to the regulation will lead to a permanent closure of the business establishments and imprisonment of the owner.
During the tax mapping, the BIR staff follow tax mapping checklists. If the BIR conducts tax mapping in your area make sure you’re fully aware of these BIR tax mapping violations.
Failure to make/file/ submit any return or supply correct information at the time or times required by law or regulations. This violation is subject to a fine not less than 10, 000 and imprisonment of not less than one (1) year but nor more than ten (10) years. For the amount, compromise is determined based on the gross sales, earnings or receipts, or gross estate or gift. Here is the tax table for compromise penalties.
Failure to make/file/submit any return or supply correct information at the time or times required by law or regulation. It is subject to a fine of not less than P10,000 and imprisonment of not less than one (1) year but not more than ten (10) years.
Failure to File Certain Information Returns. If certain information was intentionally or willfully neglected is subject to 1,000 fines for each failure but should not exceed 25, 000 within a calendar year. Fore more BIR violations, visit the BIR website.
To avoid penalties during the tax mapping, you need to review these checklists.
Therefore, in just a few minutes, you were able to avoid paying less than fifty thousand pesos for BIR penalties. Compliance with the BIR regulations will help us to save a more significant amount of money that was having tax evasion. You might wonder, is your business needs to register in the BIR?
If you have any experiences of tax penalties during tax mapping, we’re happy to hear it. If have any questions above, drop your questions below, and we’ll be happy to help you. If we’re missing something, we’ere open to hearing your thoughts. Don’t forget to share and rate this article.
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