Buying gold? BIR wants sales tax paid in advance!

[Ronzkie23]

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Buying gold? BIR wants sales tax paid in advance

ABS-CBNnews.com
Posted at 04/23/2013 12:42 PM | Updated as of 04/23/2013 12:42 PM
MANILA -- The Bureau of Internal Revenue will be collecting taxes imposed on the sales of gold and other metallic minerals in advance, in line with the agency's efforts to curb tax evasion.
In a statement, the Department of Finance said the tax bureau has issued Revenue Regulation 5-2013 which states sellers of jewelry, gold and other metallic minerals are required to pay the right taxes in advance before the transaction will be validated.
The payment will made to assigned Revenue Collection Officers of BIR Revenue District Offices that have jurisdiction where the sale has transpired.
"The advance tax payments shall be credited against the actual business tax and income tax due from sellers for the taxable period for which such advance payments were remitted to the BIR," the DOF said.
Moreover, owners and operators of venues where meetings for the sale of gold take place are ordered to report to their RDOs such matter to make sure the right taxes are being paid to the government.
"With these issuance, the government is more empowered to collect the taxes due from transactions that used to be hard to spot," Finance Secretary Cesar Purisima said in the statement.
Last year, the decreasing gold purchases of the Bangko Sentral ng Pilipinas has been blamed to smuggling and to taxation, since sellers of the precious metal are complaining of the 7-percent tax slapped on sales.
Legislators then called for the removal of said tax, while the BSP eyed an adjustment in the method used to compute the said dues.
Meanwhile, the BIR also issued RR No. 6-2013, which clarified that prices of non-publicly traded shares should be assessed at its fair market value, and using the Adjusted Net Asset method required by the tax agency.

Source: Buying gold? BIR wants sales tax paid in advance | ABS-CBN News

[kit_cebu]

Last year, the decreasing gold purchases of the Bangko Sentral ng Pilipinas has been blamed to smuggling and to taxation, since sellers of the precious metal are complaining of the 7-percent tax slapped on sales.

not sure how the bold items would make the situation better...
if they need better revenue, not through taxing...look at the middle east...well, we don't have the "oil" part though...