BIR boss says high RPT good for agency

BIR Eastern Pangasinan boss Atty. Beverly Milo (left) and Assistant Regional Director Atty. Ernesto de Vota answer questions from the pressBy Mortz C. Ortigoza

URDANETA CITY- The Bureau of internal Revenue head in eastern Pangasinan said the new Real Property Tax passed by the provincial government bodes well for the collection of the Bureau of Internal Revenue if the provincial government valuation is much higher than its zonal valuation

BIR collects taxes on lands through capital gain and sales taxes.

Revenue District-6 boss lawyer Beverly B. Milo said the computation of any internal revenue tax against the value of the real property shall be, whichever is the higher of the fair market value as determined by the Commissioner of the BIR or her office, or the fair market value as shown in the schedule of values of the Provincial and City Assessors.

This is provided by Paragraph (E), Section 6 of the National Internal Revenue Code of the Philippines, Milo said.

In the recent press conference in Dagupan City attended by Abono Party-list Chairman Rosendo So, Provincial Irrigators leader Oftociano Manalo, and other stake holders of the real estate business in Pangasinan, So argued that the zonal valuation of the BIR in Pangasinan is still based on the old lower rates even there was already a public hearing last year for a new higher zonal valuation.

The new valuation of the RPT was assailed by many sectors in Pangasinan to be excessive and confiscatory.

The land tax was signed into law by Governor Amado T. Espino in December 10, 2010 and was implemented earlier this year.

The valuation of the new land tax spiked up to an average of 300% all over the province.

Eng. So said that the new zonal valuation of the BIR has not been implemented because of the campaign promise of President Benigno Aquino III that there would be no new taxes this year.

Provincial Assessor Nestor Quimbao said during the press conference that the new zonal valuation of the tax bureau is higher than the new land tax passed by the Provincial Board.

Quimbao said based on the valuation of the BIR, a square meter of a rice land in a particular town is P50 while the valuation of the province is only P30.

So challenged Quimbao to accompany him to the BIR to show to him that the valuation of the tax bureau is still lower than the new RPT.

The Abono Party chair said that the low valuation of the BIR is comparable to the valuation of the Register of Deeds in the province.

Meanwhile, Atty. Milo explained that a non-profit educational institution is exempted to any taxes by the government.

She said that after the institution deducted the salaries of its staff and personnel, all its profits are reverted to its coffer.

“It should remain with the corporation. It would remain to be reverted to the corporation as rebate earnings,” she stressed.

She said the salaries of the officials of the institution are taxable through a monthly withholding income tax