Biz groups say no to SIR

ABS-CBN News

Posted at Mar 30 2015 03:02 PM | Updated as of Mar 30 2015 11:02 PM

MANILA – The mandatory submission of the supplemental information return (SIR) as part of the income tax returns (ITRs) of individual taxpayers is facing opposition from several business groups and top corporate tax experts in the country.

The groups argued that the SIR violates the privacy of individuals as well as the bank secrecy deposit law.

A joint position paper was submitted to the Department of Finance (DOF) and Bureau of Internal Revenue (BIR) on March 27 and was signed by the Philippine Chamber of Commerce and Industry (PCCI), Employers Confederation of the Philippines (ECOP), Financial Executives Institute of the Philippines (FINEX), Management Association of the Philippines (MAP), Philippine Exporters Confederation, Inc. (PHILEXPORT), Philippine Institute of Certified Public Accountants (PICPA), and the Tax Management Association of the Philippines (TMAP).

The groups said the SIR, which requires the mandatory disclosure of some personal information, is a redundant requirement that adds burden to taxpayers.

They added that erroneous declarations in the SIR may also expose the taxpayer to penalties of perjury.

The groups urged the DOF and the BIR to again make the submission of the SIR disclosures in the ITR optional, citing the administrative difficulty in complying with the disclosure.

The SIR requires taxpayers to report tax-exempt income items and those which have been subjected to final withholding taxes, such as interest income from banks.

The amounts required to be as income or receipts are the actual amount received, fair market value or net capital gains.