BIR hits accountants for 'ridiculously low' income taxes

Posted at 05/07/14 2:39 PM

Makati accountant paid only P313 in income tax in 2012

MANILA, Philippines - After doctors and lawyers, the Bureau of Internal Revenue is now focusing its "shame campaign" on accountants.

In its latest Tax Watch ad, the BIR noted that only 1 out of 3 taxpayer accountants in Makati City filed income tax returns for 2012.

Out of the 337 accountant taxpayers in Makati, the BIR said only 111 filed their income tax returns in 2012.

Of the 111 that filed their ITR, the BIR said 17 declared income tax due less than P27,360. This was the same annual income tax due paid by a public school teacher who earns P18,549 a month.

The BIR cited the "ridiculously low income tax due" of certain accountants as compared to gross income.

For instance, a south Makati-based accountant declared a gross income of P1.315 million in 2012, but only paid P1,361 in income tax.

Another accountant, who is based in west Makati, reported a gross income of P810,000 in 2012, but only paid a measly P313 in income tax.

Here is the BIR's Tax Watch ad: