Next BIR chief nixes lifestyle check on property buyers

DAVAO CITY, Philippines – In what could be his first act as incoming Internal Revenue commissioner, Cesar Dulay will reverse one of the much criticized recent orders by his predecessor, Kim Henares.

“There was this latest issuance only three weeks ago on lifestyle check on the buyer whether the buyer is qualified or has the money to buy the property,” Dulay told reporters on the sidelines of the second day of Sulong Pilipinas business workshop.

“We just want to recall and take a look at that in particular,” he added.

The two-day event sought to garner recommendations from the business community on action plans for the incoming Duterte administration’s 10-point economic agenda.

Dulay was pertaining to Revenue Memorandum Order (RMO) 24-2016, issued last June 7, which laid out guidelines on tax probes for property buyers and sellers who fail to show proof of financial capacity.

Henares and tax industry group Tax Management Association of the Philippines (TMAP) had traded barbs over what the latter called were “last-minute” orders two weeks before she steps down.

In particular, TMAP blasted RMO 24-2016 for being “unjust and unfair” for presuming fraud on taxpayers who cannot show proof of financial capacity.

Dulay and TMAP officials were seen conversing on the sidelines of yesterday’s forum.

“These lifestyle checks are prone to harassment,” Dulay said.

Earlier, Henares said Dulay has every power “to do what he wants” once he takes over by noon of June 30.

Dulay also clarified yesterday that he would only “review” letters of authority (LOA) which he said have taken “so much time that they have become prone to corruption.”

“But for those which are valid (LOAs), we will let them continue,” Dulay said, adding he would still need to study how BIR operates. 

BIR, which traditionally accounts for 80 percent of state revenues, is the government’s main revenue agency.

Under Henares, BIR collections grew an average of 11.7 percent from 2011 to 2015, faster than 10.01 percent in the previous five years, Department of Finance data showed.

source:  Philippine Star