MATI CITY, Davao Oriental – The Bureau of Internal Revenue–Revenue District Office (BIR-RDO) 114 in Mati is urging workers and business owners to always update their BIR records, especially when resigning or transferring jobs or ceasing business operations.
Speaking at Ronda Oriental with PIA, BIR-RDO 114-Mati group supervisor Ann Jeanith D. Malinuca emphasized the importance of regularly updating BIR records through the filing of annual income tax returns and other appropriate BIR forms to avoid open cases.
Open cases are records of missing or unfiled tax returns or unsettled tax liabilities in the BIR system. Open cases come with compromise penalties, surcharges, and interest.
Malinuca also highlighted that updating BIR records is the only way for the BIR to determine whether a taxpayer is still earning income through employment or business. Without this update, the BIR continues to assume that a taxpayer is earning and expects the corresponding tax filings, even if they have stopped working or their business ceased operations.
“Labi na sa mga job order, labi na kung wala na-renew inyong kontrata, ipa-close na sya kay wala man gud mi paagi nga mahibal-an na. On the part of the taxpayer i-inform pod ang BIR para i-close nato iyahang pagka-job order. Kung ma-regular sila (need) pod ipa-close nila ilahang pagak-job order para lang ma-iwasan ang mga open cases,” she shared.
(Especially for job orders, especially if their contract has not been renewed, BIR should be informed so that we can close their record as a job order. If they are regularized as well, they close their job order status in BIR to avoid open cases.)
Similarly, Malinuca emphasized that business owners must also update their BIR records if they are no longer engaged in business.
She reiterated that contrary to the common practice among business owners, the Business Permits and Licensing Office (BPLO) of a local government unit should not be the only entity informed when their business stops operations; the BIR must also be notified.
“Sa mga business owner kung wala namo naga-engage into business same gihapon na ipaclose. Wala ta kabalo ang open cases man gud. Usually ang problema sa mga taxpayer kay abi nila magpaclose lang sa BPLO or sa munisipyo is okay na to pero dapat gihapon magpaclose sa BIR,” she explained.
(To the business owners, if you are no longer engaged in business, it still needs to be closed to avoid open cases. Usually, the problem with taxpayers is that they think that it’s okay to close with the BPLO or the municipality, but they should still close with the BIR.)
Malinuca explained that there are other necessary protocols they conduct once a business stops operating, such as the destruction of official receipts to prevent them from being used by others.
Malinuca urged the taxpaying public to visit their office for assistance if they wish to update their records or resolve any open cases. (ASO/PIA)
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