BIR asks: Why are many accountants not filing ITRs?


Posted at May 14 2014 04:34 PM | Updated as of May 15 2014 12:34 AM

MANILA, Philippines – More than half of accountants registered in Taguig, Pasay, Paranaque, Las Pinas and Muntinlupa did not file income tax returns for 2012, the Bureau of Internal Revenue (BIR) said.

The agency’s latest tax ad showed that out of the 312 accountant taxpayers registered in these areas, only 119 or 38.1 percent filed their 1701 form.

The 1701 form, or the annual income tax return for self-employed individuals, estates and trusts, should be filed by individuals engaged in business or practice including those with mixed income.

The form should contain all transactions covering the calendar year of the taxpayer.

According to the BIR, 69 of the 119 accountants (58 percent) who filed returns declared income tax due less than P27,360, which is the income tax of a public school teacher earning P18,549 a month.

A salary report from online job portal said an accountant with little experience earns about P12,000 to P14,000 a month while an accountant in a managerial position earns about P30,000 to P40,000 a month.

A total of 36 accountants (30.3 percent), meanwhile, declared zero income tax due.

The BIR also said in its ad that some accountants paid “ridiculously low income tax dues” compared to their gross income.

The accountant who paid the least taxes was registered in Las Pinas, paying only P1,225 (0.1 percent) despite a gross income of P889,000 in 2012.

An accountant registered in Taguig-Pateros had a gross income of P825,780 in 2012, but only paid income tax dues of P1,745 (0.2 percent).

An accountant from Pasay City earning P198,900 paid only P1,322 (0.4 percent) in taxes.

An accountant from Paranaque earning P379,530 paid only P1,707 (0.4 percent) while an accountant registered in Muntinlupa earning P123,000 paid only P1,640 (1.3 percent) in taxes.