Chat with us, powered by LiveChat

Top 5 Common Violations that Taxpayers Make

What common violations do taxpayers make that may get them into trouble with the Bureau of Internal Revenue?

Unless they are exempted, everyone who generates income has the obligation to the country to be responsible for their taxes. Here are five common mistakes that taxpayers often make:

Failure to register to BIR

The first step towards tax compliance is a registration to the BIR. Citizens who fail to register themselves as self-employed individuals may put them in trouble with the authorities.

Failure to file and pay taxes

If an individual or company fails to pay their taxes regardless of their business nature or industry, BIR will go after them and face tax evasion charges.

Failure to withhold and remit taxes to BIR

A misstep towards this and other related measures may put themselves in a wrong position with the Bureau.

30 percent under declaration of sales

A taxpayer may face a violation of Section 248(B) of the NIRC, wherein a substantial under-declaration of taxable sales and other related aspects shall constitute prima facie evidence of a false or fraudulent return. And if proven, they may be charged with tax evasion.

30 percent over declaration of expenses

This is also covered by Section 248(B) of the NIRC, wherein failure to report sales, receipts, or income in an amount exceeding thirty percent (30%) of that declared per return. A claim of deductions in an amount exceeding (30%) of actual deductions shall render the taxpayer liable for substantial under-declaration of sales, receipts, or income or overstatement of deductions, as mentioned herein.

The punishment for tax evaders, in general, has been jacked up since July, with a fine of not less than P10,000 and imprisonment of not less than one year but not more than ten years.

Any taxpayer who wishes to do right by their tax responsibilities can do so with ACG- Consult us now by sending us a text to our Tax Health Check Officer, Elon Andal through (+63) 906 315 9230 or email us at and let’s make tax even easier for you! 📧

Leave a Reply

Scroll to Top
%d bloggers like this: