BIR needs Senate approval to implement tax rules

Kim Henares official photo (www.bir.gov)

MANILA — A ratification from the Senate is needed to carry out the agreement between the Bureau of Internal Revenue and the US Internal Revenue Service, according to Internal Revenue commissioner Kim Henares.

The agreement  signed with US Ambassador Philip S. Goldberg aims to to reduce offshore tax evasion and promote transparency under the latter’s Foreign Account Tax Compliance Act.

“The Philippines continues to stand at the forefront of fiscal transparency across the Asia-Pacific region, reaping measurable returns for our people,” Finance Secretary Cesar Purisima said.

“Tax evasion across borders is an alarming problem that we can beat back with openness and mutual cooperation. This (intergovernmental agreement) is an affirmation of that ideal,” he added.

Henares said that the deal requires an “automatic reporting system” which means that the date will be relayed with or without a request.

She added that the bureau needs the go signal of the Senate before it can implement  the tax rules.