The Commissioner of the Bureau of Internal Revenue (CBIR) is determined to meet her revenue collection targets by all means even at the expense of individual rights and the freedom of enterprise. She may have exceeded her authority by issuing regulations that interferes with taxpayers judgment and the free exercise of profession (Please see related Blog on this entitled “BIR, Abuse and Human Rights”). The recent move of the BIR that aims to require professionals to post in their offices their billing rates similar to a sari-sari store undermines a professional's sworn code of conduct and ethics. Certified Public Accountants (CPA’s) by code of ethical standard are inhibited from making solicitations through the posting of their rates publicly, to do so otherwise would equate to a violation subject to certain disciplinary measures to the detriment of the professional and the profession as a whole. The same can be true for other professions which are required to abide to a set rules of ethics.
Similarly, the Commissioner of the BIR is working to introduce amendments to the professional laws and statutes by requiring through the Professional Regulation Commission (PRC) the submission of income tax return before a professional can renew his or her license.What makes this recent move of the BIR chief abusive is it selfishly ignores other existing laws, rules and standards. Let us bear in mind that the BIR cannot by its mandate interfere with the practice of enterprise, individual or otherwise, before income is generated and the corresponding expenses are matched. Efforts to influence a taxpayers conduct of his business even before a taxable income is realized would be tantamount to harassment and coercion. Only after a taxable income is realized that the BIR may legitimately concern itself and poke a nose on the privacy of business subject to the time frame and limitations provided in the tax code.
Revenue Regulations are made to further the existing statute provisions through clarifications in the implementing procedures. Revenue Regulations cannot be use to indirectly assume legislative function by effectively altering or adding provisions in the existing law. The BIR should instead intensify its intelligence effort on specific industry where it felt the deficiency exist and it is not collecting the right taxes. It should program and expand its post audit as well.
Similarly, the Commissioner of the BIR is working to introduce amendments to the professional laws and statutes by requiring through the Professional Regulation Commission (PRC) the submission of income tax return before a professional can renew his or her license.What makes this recent move of the BIR chief abusive is it selfishly ignores other existing laws, rules and standards. Let us bear in mind that the BIR cannot by its mandate interfere with the practice of enterprise, individual or otherwise, before income is generated and the corresponding expenses are matched. Efforts to influence a taxpayers conduct of his business even before a taxable income is realized would be tantamount to harassment and coercion. Only after a taxable income is realized that the BIR may legitimately concern itself and poke a nose on the privacy of business subject to the time frame and limitations provided in the tax code.
Revenue Regulations are made to further the existing statute provisions through clarifications in the implementing procedures. Revenue Regulations cannot be use to indirectly assume legislative function by effectively altering or adding provisions in the existing law. The BIR should instead intensify its intelligence effort on specific industry where it felt the deficiency exist and it is not collecting the right taxes. It should program and expand its post audit as well.
Professional and business organization must strive to protect themselves from abusive regulations and ruling such as those mentioned here, from those that recklessly subjugates individual rights and freedom as guaranteed by the constitution. Regulations that limits free judgement; is suppressive in character; and is a departure from the spirit of the tax code provision, must be challenge through the court to weed out those that could be borne out of caprices, personal and political ambitions and at times by incompetence.
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