BIR Compliance Test

8/20/2019 BIR Compliance Test

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HOW TO PASS THE BIRHOW TO PASS THE BIR

COMPLIANCE TESTCOMPLIANCE TEST

ROGER C. LEEROGER C. LEE

Group SupervisorGroup SupervisorRevenue District No. 82Revenue District No. 82

Cebu CityCebu City – – SouthSouth DistrctDistrct


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ObjectivesObjectivesTaxpayers will be aware of the common violations

and adhere to the requirements of

OOKKEEPING

NVOICING

EGISTRATION


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Tax Mapping Operation MissionTax Mapping Operation Mission(Commissioner of Internal Revenue memo dated April 9, 2003)(Commissioner of Internal Revenue memo dated April 9, 2003)

1. To apprehend all business establishments notissuing proper receipts as well as for violation

of all internal revenue laws, rules and regulations

n t e con uct o us ness;2. To collect such penalties, fines and surcharges as

are required under existing laws, regulations and

memo orders;


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3. To insure that all the violations discovered are

immediately corrected by business establishmentsconcerned; and

4. Seize all unauthorized invoices/receipts found in

Tax Mapping Operation MissionTax Mapping Operation Mission(Commissioner of Internal Revenue memo dated April 9, 2003)(Commissioner of Internal Revenue memo dated April 9, 2003)

the establishment including unregistered CRM orPOS machines.In the meantime that these seized

machines have not yet been released, nor duly

authorized receipts printed and for a period of notless than two weeks, to require the use of BIR

Authorized Temporary Receipt/Invoice.


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REGISTRATION VIOLATIONSREGISTRATION VIOLATIONS

Failure to register the business with BIR

No RF annual/renewal payment

No ”Ask for Receipt” poster displayed


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Registration RequirementRegistration Requirement(Sec.236, NIRC)(Sec.236, NIRC)

1. Employees : Within 10 days from date ofemployment (BIR Form 1902- TRU)

.

change (BIR Form 2305)

3. Business : Before commencement of business

and payment of any tax due

Individual - BIR Form 1901

Corporation - BIR Form 1903


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3a. Sec. 248/249 – Failure to pay annual registration

fee is subject to penalties of 25% surcharge, interest

and compromise penalty.

–

Registration RequirementRegistration Requirement

. . .

or omission, be punished by a fine of not less than

P5,000 but not more than P20,000 and imprisonment

of not less than six (6) months but not more than

2 years.


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Registration Fee for BusinessRegistration Fee for BusinessP500 to be paid upon registration for new registrants

andfor old registrants, on or before Jan.31 of the year (BIR

Form 0605) except:

. oopera ves2. Employees

3. Individual Marginal Income Earners with

annual sales/services of not more than

P100,000


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Registration ProcedureRegistration Procedure

Registration is required for every separate or distinct

establishment or place of business including facilitytypes where sales transactions occur and warehouse

where inventory of goods for sale are kept before

commencement of business and payment of any tax due.


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The Certificate of Registration shall be issued to the

applicant by the Revenue Office concerned uponcompliance with the requirements for registration

which shall be posted together with duly validated

Registration ProcedureRegistration Procedure

Registration Fee Return at a conspicuous place inthe principal place of business and at each branch.


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Cancellation of RegistrationCancellation of Registration

The required documents for submission:

• Formal letter of termination/Notice of Dissolution

• Duly accomplished BIR Form 1905

• Unused Sales Invoice, ORs & other invoices• VAT returns and Withholding Tax remittances

• Inventory of goods

• Audited Financial Statements


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Transfer of RegistrationTransfer of Registration

Whenever a VAT-registered person changes his

principal place of business from one revenue districtto another, both revenue district offices should be

notified by filing BIR Form 1905 within fifteen (15)

days from the date of such change was made.

If the change of address is within the revenue district,

the notification shall be filed with the same revenuedistrict office.


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Penalties for Registration ViolationPenalties for Registration Violation

VIOLATION 1ST

OFFENSE

2ND

OFFENSE

FAILURE TO

REGISTER

FAILURE TO PAY ANNUALREGISTRATION FEE

P 1,000.00

NO CERTIFICATE OF REGISTRATION

DISPLAYED

P 1,000.00

NO ”ASK FOR RECEIPTS” POSTER

DISPLAYED

P 1,000.00


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Invoicing RequirementsInvoicing Requirements

All registered persons shall for every sale or lease ofgoods, properties or services, issue duly registered

receipts or sales or commercial invoices which mustshow:• Name, TIN, address of seller

• Quantity, unit cost and description of merchandise

or nature of service• The name,TIN, and address of the purchaser,

customer or client for VAT registered taxpayers• Invoice or receipt number• Authority to print number & other receipt details


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INVOICINGINVOICING VIOLATIONS &VIOLATIONS & PENALTIESPENALTIES

VIOLATION 1STOFFENSE 2NDOFFENSE

FAILURE TO ISSUE RECEIPTS/INVOICES

P 10,000.00 P 20,000.00

REFUSAL TO ISSUE RECEIPTS/

INVOICES

P 25,000.00 P 50,000.00

DUPLICATE COPY OF RECEIPTS ISBLANK & USED ORIG COPY

DETACHED

P 10,000.00 P 20,000.00

USE OF UNREGISTERED RECEIPTS/

INVOICES

P 10,000.00 P 20,000.00

INCOMPLETE INFORMATION IN THE

RECEIPTS/INVOICES

P 1,000.00 P 2,500.00


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USE OF unregistered CRM,POS or

SIMILAR DEVICES IN LIEU OF

INVOICES/RECEIPTS

P 25,000.00 P 50,000.00

USE OF Computerized Accting System P 25,000.00 P 50,000.00

or components w o

FAILURE TO INFORM ANY

ENHANCEMENTS/MODIFICATIONS/

CHANGES IN PREVIOUSLY ISSUED

PERMIT to use CAS

P 25,000.00 P 50,000.00

Use of POS in TRAINING MODE IN

THEIR SALES TRANSACTION

P 25,000.00 P50,000.00


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FAILURE to register CRM as CASH

DEPOSITORY ONLY

P 25,000.00 P 50,000.00

CASH depository CRM is USED FOR

ISSUING SALES RECEIPTS/INVOICES

P 25,000.00 P 50,000.00


to

ORIGINAL STICKER in the machine

authorizing the USE of CRM/POS or

similar device

, .

FAILURE to ATTACH/PASTE

ORIGINAL STICKER in the machine

authorizing the USE of CRM for CASH

DEPOSITORY ONLY

P 1,000.00


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FAILURE to DISPLAY PERMIT issued

by the RDO for CRM/POS/or similar

device

P 1,000.00

FAILURE TO PROVIDE CRM with two

(2) ROLLER TAPES

P 1,000.00


FAILURE TO NOTIFY THE REVENUE

DISTRICT OFFICE that the CRM/POS or

similar device is DEFECTIVE and has

been PULLED-OUT for REPAIR prior to

the TRANSFER of CRM/POS to OTHER

BUSINESS LOCATION

P 1,000.00

USE of CRM/POS or similar device in a

PLACE OTHER THAN SPECIFIED IN

THE PERMIT.

P 25,000.00 P 50,000.00


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BOOKKEEPING VIOLATIONSBOOKKEEPING VIOLATIONS

Failure to register Books of Accounts

Failure to keep Books of Accounts at the place ofbusiness

of Accounts


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Books of AccountsBooks of Accounts(Sec. 232, NIRC)(Sec. 232, NIRC)

1. New Business – must be registered beforecommencement of the business or upon

registration.

. Ex st ng Bus ness – must e reg stere on orbefore Dec. 31 of the current year.

3. Late registration – shall be subject to a minimum

penalty of:

Individual (Non-VAT P500; VAT P1,000)

Corporation (Non-Vat P1,000; VAT P2,000)


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BOOKKEEPINGBOOKKEEPING VIOLATIONS &VIOLATIONS &PENALTIESPENALTIES

VIOLATION AMOUNT

FAILURE to register BOOKS OF

ACCOUNTS/CASH REGISTER

MACHINE´S SALES BOOKS

Subject to graduated rates

(P200-P50,000) based on

gross sales

FAILURE TO KEEP BOOKS OFACCOUNTS AT THE PLACE OF

BUSINESS

FAILURE TO MAKE ENTRIES IN THE

REGISTERED BOOKS OF ACCOUNTSOTHERS (refer to Section 275 of NIRC) P 1,000.00 for each act or

ommission


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File & Pay your taxes on timeFile & Pay your taxes on timeKIND OF TAX FREQUENCY BIR FORM DEADLINE

1. VAT Monthly 2550M 20th day of the following month

Quarterly 2550Q 25th

day of the following month

2. Non-VAT Monthly 2551M 20th day of the following month(Percentage)

3. Withholding Taxth

the month of DEC remittable not later thanJAN.15 of the following yearExpanded Monthly 1601E -do-

4. Income Tax Quarterly 1701Q 1ST Qtr – Apr 15(Individual 2nd Qtr - Aug 15

3rd

Qtr - Nov 15Yearly 1701 Apr 15 of the following year5. Income Tax Quarterly 1702Q 60 days after the end of the quarter

(Corp/Part) Yearly 1702 15 days after the 4th month of everycalendar year or fiscal year


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Schedule of Submission of AnnualSchedule of Submission of AnnualInformation & ReportsInformation & Reports

Kind of Report Deadline

• List of Inventories January 30

• Annual Information return of taxes withheld from Income

(Expanded and Final)

Form 1604C – Com ensation Januar 31

Form 1604E – Expanded March 1Form 1604F – Final January 31


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BIR Compliance TestBIR Compliance TestQuestions Y N

1. Is your main business establishment or branch registered with the BIR?

2. Do you display the Certificate of Registration & ”Ask for Receipt” Poster?

3. Have you paid the annual Registration Fee or renewed your business?4. Are your receipts/invoices registered with the BIR?

5. Do you issue receipts for every sale of goods or services?

.

7.Are your Point Of Sale/Cash Register Machines registered with the BIR?

8.Do your POS/CR machines have the authority to use sticker?

9.Do you display the permit to use POS/CR Machines issued by the BIR?

10.Do you inform the BIR if your defective POS/CR Machines are replaced?

11.Do you have a Permit to use Computerized Accounting System?

12.Are your Books of Accounts/CRM sales books registered with the BIR?

13.Do you keep the Books of Accounts at the place of business?

14.Do you make entries in the registered Books of Accounts?


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HOW YOU CAN HELP INCREASEHOW YOU CAN HELP INCREASETAX COLLECTIONTAX COLLECTION

For Corporations and Enterprises:

1. Pay correct taxes regularly and on time .

taxes3. Organize tax forum/briefings for officers &

employees

4. Produce & disseminate tax information,education and communication materials toworkforce and the public

5. Issue receipts for every business transaction


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6. Include tax information in company newslettersand other publications

7. Sponsor broadcast infomercials or developmental

HOW YOU CAN HELP INCREASEHOW YOU CAN HELP INCREASETAX COLLECTIONTAX COLLECTION

p ugs nc u e tax ut es an o gat ons n t ecompany code of conduct

8. Integrate tax-related topics in the company’s

regular training programs

Documents

BIR Compliance Test