Tax practitioners should be ‘more professional’ -- BIR

The Bureau of Internal Revenue (BIR) has tightened its rules for accrediting tax practitioners or agents as part of efforts to ensure that laws are followed and the correct taxes paid. The bureau has issued Revenue Regulations (RR) No. 4-2010, dated Feb. 24, which amended RR No. 11-2006 on the accreditation of tax practitioners, whether individuals or belonging to tax firms, who may represent taxpayers. The BIR will now require tax practitioners to undergo continuing professional education and training from accredited providers each year. It also expanded the definition of "reckless conduct" that would result in the suspension or cancellation of a tax practitioner’s accreditation. "We issued the regulations because we wanted practitioners to become partners of BIR, where practitioners will ensure that clients comply with tax laws and rules," Internal Revenue Commissioner Joel L. Tan-Torres said in a telephone interview yesterday. He said there are times when tax practitioners condone or come up with aggressive tax planning, which essentially results in the reduction of a taxpayer’s liabilities. "With the accreditation rules, we will compel practitioners to become more professional," he said. RR 4-2010 lengthens the minimum qualifications for accreditation by requiring applicants to complete "the minimum number of hours of continuing professional education from BIR-accredited providers." The tax bureau, however, still needs to come up with the guidelines for accrediting these providers. Sought for comment, Tax Management Association of the Philippines President Ma. Victoria A. Villaluz said that while she welcomed the effort to professionalize tax practitioners, the BIR needs to be specific as to who would stage the seminars. RR 11-2006 required applicants to be certified public accountants with licenses from the Professional Regulatory Commission, law graduates, or holders of bachelor’s degrees with at least 18 units in accounting or taxation, among others. They also must not have been charged with violations of the Tax Code. In expanding the definition of "reckless conduct," the new rules state this shall be presumed when there is "substantial under declaration of client-taxpayer’s taxable sales, receipts or income, or a substantial overstatement of its deductions…" RR 4-2010 read. The BIR said the names of accredited tax practitioners would be posted on its website or published in newspapers. "Only those… who have been issued a Certificate of Accreditation or ID card shall be allowed to represent a taxpayer or transact business with the BIR," it said. - BusinessWorld