BIR to probe Metro Manila's 'most dangerous' bus companies
MANILA, Philippines (UPDATE) - The Bureau of Internal Revenue (BIR) is investigating whether the bus operators named as the "most dangerous" by the Land Transportation Franchising and Regulatory Board (LTFRB) are paying the right taxes.
Based on the findings, there seems to be some irregularity as taxes paid are not proportionate to their gross income.
BIR commissioner Kim Henares said they will conduct further investigation and will recommend to the LTFRB to include the submission of income tax returns and financial statements in their requirements for franchise applications.
Henares added it is important for a bus company to prove its financial stability first to give security to passengers.
On Wednesday, the Department of Finance and BIR released a new Tax Watch ad titled: "Do Metro Manila's most dangerous bus operators pay the right taxes?"
The Tax Watch ad showed the 2012 gross receipts and income taxes paid by bus companies in the Land Transportation Franchising and Regulatory Board's list of most dangerous buses (2010-2011).
The LTFRB's list showed Admiral Transport and Nova Auto Transport recorded the highest number of accidents which led to deaths of both passengers and bus personnel.
"Of all the bus companies listed here, Nova Auto Transport had the lowest declared income tax due as a percentage of gross receipts for 2012. It is only 0.21%," the BIR and DOF said.
Nova Auto Transport reported P34.83 million in gross receipts in 2012, paying only P71,842 in taxes.
Admiral Transport, on the other hand, posted P27.77 million in gross receipts and paid P109,223 in income tax.
Meanwhile, JAM Liner reported the biggest gross receipts in 2012 with P552.09 million and paid P4.2 million in income tax.
However, several bus companies did not file any income tax return in 2012. These are Gasat Express, Joyselle Express and A. Carating Transit.
Based on preliminary BIR findings, AM Liner and EM Transit Service did not have any TIN. - With report from Zen Hernandez, ABS-CBN News