Reporting tax evading social media influencers could earn you a reward of PHP 1 million

According to tax expert and former Bureau of Internal Revenue (BIR) examiner Mon Abrea, anyone who reports a social media influencer who does not pay taxes could obtain a prize of up to PHP 1 million from the government.

“‘Yun ‘yung hindi masyado alam ng publiko,” says the author. ‘pag sinabi natin o tinuro natin ‘yung mga kasama natin na mukhang hindi nagbabayad ng buwis,’ tayo pwede kumita. (This is what most people are unaware of.) When we denounce other citizens who appear to be dodging taxes, we can earn),” Abrea told One News.

The Informer’s Reward Law, Republic Act No. 2338, was designed to aid the BIR and Bureau of Customs (BOC) in pursuing tax fraudsters, evaders, and smugglers. This statute grants anyone who “voluntarily gives definite information to the BIR and BOC on any tax fraud or smuggling case that leads in the recovery of revenues, surcharges or fees and/or conviction of the guilty party” 15% of the amount recovered.

However, when the Tax Reform Act of 1997 (RA 8424) was passed, the law was changed. As a result, Section 282 of the National Internal Revenue Code (NIRC) of 1997 allows someone who “voluntarily” offers information about probable irregularities to get “a simple 10% (10%) reward or PHP 1 million, whichever is lower.”

The Informer’s Reward Law applies to anybody who assists in identifying tax fraud, not just those who report tax-evading social media influencers.

The BIR recently issued Revenue Memorandum Circular 97-2021, which reminds all social media influencers of their tax obligations, whether individuals or organizations.

In a memo signed by Commissioner Caesar Dulay, the BIR stated that it had received information that specific influencers have not been paying their income taxes despite earning large amounts of money from various social media sites.

According to Abrea, finding out who isn’t in the BIR’s system is simple, as “they may be identified through an informant, the conventional manner of publishing names or billboards, and the digital platforms,” as reported by One News.

Sources: One NewsBIR

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