BIR unfazed by protests, insists tax on gov’t employees

Kim Henares official photo (www.bir.gov)

MANILA — Even after the recent protest from government workers, the Bureau of Internal Revenue (BIR) remains firm on its decision to tax all allowances, bonuses and other monetary benefits received by government officials.

Several employees recently protested in front of the Supreme Court asking the high court to stop the BIR ruling.

Despite this, BIR Commissioner Kim Henares reiterated their stand saying the agency is only implementing an existing law.

Contrary to allegations that they made up a new tax scheme, Henares said there are no new taxes imposed to state employees.

Citing Section 32 of the National Internal Revenue Code, Henares reiterated that compensation for services in whatever form are part of the gross income and are subject to withholding tax.

“The obligation to withhold of government is further emphasized by Section 272 because it provides a penalty for violation committed by government,” Henares said in a statement.

She also said that the law will be covering all government offices (municipal, provincial and city) including the legislative branch, judicial branch, constitutional bodies such as the Commission on Elections, Civil Service Commission, Commission on Audit and Office of the Ombudsman, as well as government-controlled corporations such as the Bangko Sentral ng Pilipinas, Manila Waterworks and Sewerage System, the Philippine Deposit Insurance Corp., Government Service Insurance System, Social Security System.

“No one is above the law so government employees must adhere to it,” Henares said.