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MANILA - The Bureau of Internal Revenue will audit publicly listed companies that reported robust first-quarter earnings to determine whether their profit translated into higher income tax returns.
Commissioner Kim Jacinto-Henares told reporters that the bureau has started an investigation following a Philippine Stock Exchange report last week that listed firms' combined income rose by a quarter.
"If you would look at the press release of the Exchange, the combined net incomes of listed firms grew by 24 percent during the first quarter, so how come such growth did not correspond to the taxes we have collected from them?" Jacinto-Henares said.
The bureau's Large Taxpayers Service, which accounts for 63 percent of its P1.066 trillion revenue goal for the year, collects the income taxes of many of these listed firms.
"We are not immediately saying that there is fraud on their part, but this discrepancy needs to be looked at. Thus, we started an investigation to find out," she said.
"If we discover in the course of the investigation that there is discrepancy we would go after them and collect their respective deficiencies. But in the event that it is attendant with fraud, we will be compelled to file tax evasion against their responsible officers,” she added.
According to the PSE report, the 24 percent net income growth to P134.66 billion of listed companies in the first quarter can be attributed to firms in financials, industrial, property and holding firms sectors.
Among the biggest earners in the first quarter were the following:
- San Miguel Corp., 19 percent up year-on-year to P8.5 billion;
- SM Investments Corp., 13 percent higher at P6 billion;
- Aboitiz Equity Ventures Inc., 27 percent more at P5.9 billion;
- JG Summit Holdings Inc., 76.7 percent more at P4.91 billion;
- Ayala Corp., 42 percent higher at P3.5 billion;
- Alliance Global Group Inc., 34 percent more at P2.96 billion; and
- Metro Pacific Investments Corp., 91 percent higher at P1.57 billion.
Last April, when income tax returns were due, the bureau's LTS collected P74.25 billion, or P5.34 billion off its P79.59 billion goal for the period.
A month later, the unit incurred a deficit of P8.752 billion after raising only P63.17 billion over its P71.922 billion goal.
"The collection performance of the Large Taxpayer Service was affected by a decrease in reported sales/revenue and an increase in reported costs of sales and/or expenses by some taxpayers under its jurisdiction," Jacinto-Henares said.
The May collections brought the agency's five-month tally to P439.816 billion, or P20.142 billion short of its 459.958 billion goal for the period.
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