DUTY AND RESPONSIBILITY OF RESPs IN ISSUING RECEIPTS FOR PAYMENTS RECEIVED IN RENDERING THIER REAL ESTATE SERVICES

Mr. Ramon CF Cuervo: "In the Code of Ethics and Responsibilities for Real Estate Service Practitioners, it states that the practitioner shall observe at all times objective moral standards in the practice of real estate service with good governance in relation with his/her client(s) and the community and in service to the nation and Filipino people."

Mr. Ramon CF Cuervo: “In the Code of Ethics and Responsibilities for Real Estate Service Practitioners, it states that the practitioner shall observe at all times objective moral standards in the practice of real estate service with good governance in relation with his/her client(s) and the community and in service to the nation and Filipino people.”

In the Code of Ethics and Responsibilities for Real Estate Service Practitioners, it states that the practitioner shall observe at all times objective moral standards in the practice of real estate service with good governance in relation with his/her client(s) and the community and in service to the nation and Filipino people. (Artcile II, General Provisions and Declaration of Principles)

So paying the right taxes and issuing receipts is an obligation for RESPs, especially the real estate companies.

The Article III, Professional Rules of Conduct and Responsibilities to the Government, states that “(a) The Practitioner shall secure all the necessary licenses, permits and authority from the Commission and other government agencies as may be required by law, ordinance or rules and regulations and comply with all the requirements relative to the practice of real estate service, b) The Practitioner shall pay any and all professional fees and taxes that are required by law in the practice of real estate, and (c) The Practitioner shall not encourage, tolerate or participate in the evasion or illegal reduction in the payment of all taxes, fees or charges that is due to the government.”

In the Article V, The Practitioner as a Person, it shows that preparing invoices and receipts is an obligation. In the Section 1, it states that “A Practitioner, whether as an individual or as member of the firm, or as officer or employee of a juridical person (e.g. corporation, partnership, cooperatives, association) shall be deemed engaged in the practice of real estate service profession within the meaning and intent of Republic Act No. 9646 and it rules and regulations, if he/she: Prepares, signs or certified as correct any professional reports, bids, invoices or documents/records of clients/employer intended to be used in securing licenses and permits (e.g. license to sell, etc.) or in securing any loan or mortgages that requires the professional services of a registered real estate service practitioner.”

Recently, the Bureau of Internal Revenue (BIR) has issued a new invoicing requirement that will take effect on July 1. The BIR’s Revenue Regulations No. 18-2012, is requiring taxpayers to secure new Authority to Print (ATP) and print new invoice/receipt and all commercial documents being issued to customers. Old receipt will be turned over to BIR only up to June 30, 2013.

All business establishments, including the real estate sector, should be aware on this.

The new receipt will have a security mark and other features that will expire after 5 years. The expiry date is needed because some of the receipts printed in 1970s are still being used.  The BIR also directed businesses to transact only with a new list of BIR-accredited printing companies.

Also, this move is meant to expose companies that are not really engaged in any business except to sell receipts and to curb tax evasion and smuggling.

I’m sharing guidelines from this site, www.gvacpas.com:

Relative to said regulations prescribing the new rules in processing of Authority to Print (ATP) of Official Receipts, Sales Invoices and Other Commercial Invoices, the following must be noted:

  1. All applications must be done through on-line ATP systems.
  2. Not just principal receipts/invoices such as VAT SI/VAT OR/Non-VAT SI/Non-VAT OR are required to be registered before printing but also supplementary receipts/invoices such as delivery receipt, order slip, debit/credit memo, purchase order, provisional/temporary receipt, acknowledgement receipt, collection receipt, cash receipt, bill of lading, billing statement, statement of account, any other documents being used in the business and issued to customer.
  3. Approved ATP is valid upon full usage of the serial numbers or five (5) years from issuance, whichever comes first.
  4. All existing unused/unissued receipts/invoices shall be valid until June 30, 2013. The unused receipts/invoices shall be surrendered to BIR for destruction.
  5. Application for new ATP shall be 60 days prior to actual expiry.

The BIR, in issuing the above new regulations, aims to regulate further the printing of all invoices, set validity period, and generate reports relative to the ATP.

Sample of the new receipt to be issued by all businesses. (Photo source: www.gvacpas.com)

Sample of the new receipt to be issued by all businesses. (Photo source: http://www.gvacpas.com)

Despite of this BIR directive, several businessmen and private companies are objecting this new regulation citing the time to print new receipts and the steep penalties to be imposed.

They said that the regulation was only published last January and this was too swift for them and could cause losses for their businesses. For the penalties, the P50,000 fine for those who will fail to issue new receipts are just to high.

Sergio Ortiz-Luis, president of the Philippine Exporters Confederation (Philexport) and an officer of the Philippine Chamber of Commerce and Industry (PCCI),  said  that majority of businesses in the country were not prepared for the implementation of RR 18-2012.

PCCI and Philexport understand the reasons for this new regulation but the government should have been more considerate to the businesses. He also said that BIR should have allotted one to two years before implementing the regulation to give the businesses more time to prepare and be familiarized.

Bayan Muna Partylist Representative, Teddy Casino, joined the call to extend the deadline after listening to the concerns of small and medium businesses. They also told Casino that they were only notified last month. Casino is the chairperson of the Congressional Committee on Small Business and Entrepreneurship Development.

In his letter to BIR Commissioner, Kim Jacinto, he said that “While they are supportive of efforts and reforms to address the problem of fake receipts, (many businesses) find the deadline unreasonable. Our SMEs are lamenting the lack of a public consultation and the hefty fines. Many are already going to the media to complain about the P1,000 fine for old receipts filed starting April 30. They are all the more worried about the P50,000 fine to be imposed starting July 1.”

BIR Commissioner, Kim Henares.

BIR Commissioner, Kim Henares.

Despite of the complaints, the BIR is determined to implement the new regulation and defended it. Noting that only few taxpayers are responding to the new regulation, the tax agency issued the Revenue Memorandum Order (RMO) No. 12-2013 on May 2, detailing the imposition of penalties.

Jacinto said that the 6-months preparation is already long enough for businesses to comply. She said that BIR had issued the Revenue Regulations No. 18-2012 last year and published the same in the January 3, 2013 issue of the Manila Bulletin informing everyone that existing receipts will expire on June 30.

With source from: http://gvacpas.com/2013/05/09/guide-to-birs-new-invoicing-requirements-effective-june-30-2013/, Philippine Daily Inquirer, Manila Bulletin, Interaksyon

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One Response to DUTY AND RESPONSIBILITY OF RESPs IN ISSUING RECEIPTS FOR PAYMENTS RECEIVED IN RENDERING THIER REAL ESTATE SERVICES

  1. Gilbert C. Quiñones says:

    In fairness to this administration, this is a good idea.

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