Tax Watch targets Makati doctors

DOCTORS IN MAKATI were the latest to be put in the spotlight as part of a government campaign against tax evasion, with compliance examined based on their income tax returns.

After six weeks of focusing on the revenue shortcomings of local governments, the Finance department turned its sights once more on the professional sector in yesterday’s Tax Watch advertisement.

Using Bureau of Internal Revenue (BIR) data, it noted that less than two-fifths of taxpayer doctors in Makati filed income tax returns in 2012 -- with some even declaring very low dues.

According to the Tax Watch ad, a total of 1,798 doctors are registered with the BIR’s Makati revenue district offices. Of this, just 647 or 36% filed their tax returns in 2012.

The ad also pointed out that 209 of the 647 taxpayer doctors even declared income tax dues less than the tax to be withheld from the gross income of a public school teacher earning P18,549 a month -- pegged at some P27,360.

For instance, a doctor who earned P3.72 million in 2012 only declared a tax due of P2,000, the ad declared.

“When you don’t pay your taxes, you’re a burden to those who do,” the Finance department declared.

Tax Watch is an ongoing campaign by the Finance department where weekly advertisements containing tax collection statistics are released, with the goal of encouraging people to comply with laws and raise government revenues.

The BIR is the government’s main revenue agency, accounting for about 70% of collections. It is tasked to collect a total of P1.456 trillion in taxes this year.

The agency has collected P549.085 billion as of May, up 8.74% from P504.95 billion recorded a year earlier but over P50 billion short of the period’s P603.871-billion target.

It shored up P1.217 trillion last year, up 15.03% from the P1.058 trillion recorded in 2012 but missing the P1.253-trillion goal. -- Bettina Faye V. Roc

source:  Businessworld