BIR: Losses due to looters may be declared as income tax deductible

[wowiesy]

Losses due to looters may be declared as income tax deductible?Henares | Inquirer Business

Losses due to looters may be declared as income tax deductible?Henares | Inquirer Business

Losses due to looters may be declared as income tax deductible—Henares

MANILA, Philippines—Business establishments allegedly looted by some survivors of typhoon Yolanda may declare losses as deductible from their income taxes.
At a press conference, Bureau of Internal Revenue (BIR) Commissioner Kim Henares said establishment owners must meet certain conditions to be able to avail of casualty loss.
“If you lose something out of theft—that is still considered as casualty loss. So, kung nawalan ka sa pagnanakaw, pareho yun sa nawalan ka dahil doon sa storm (Yolanda’).
“Kailangan hindi nabayaran sa ‘yo ng insurance company; kasi lahat ng negosyo usually may insurance against theft… so if nabayaran ka ng insurance company, hindi mo pwede i-deduct [as casualty loss,” Henares said.
Under the Tax Code, casualty loss is the one resulting from complete or partial destruction of property from an identifiable event of a sudden, unexpected or unusual nature. Casualties such as fire, storms, earthquake, shipwreck as well as robbery, theft and embezzlement are realities in a business environment and their effect is a big financial loss to one’s business.
The requirements that should be met are the following:
a. The loss must be that of a taxpayer.
b. It must be actually sustained and charged off within the taxable year.
c. It must be evidenced by a closed and completed transaction.
d. It must not be compensated for by insurance or other forms of indemnity.
e. In case of casualty loss, a sworn declaration of the loss must be filed within the prescribed period, that is, not less than 30 days or not more than 90 days from the date of the occurrence of casualty or robbery, theft or embezzlement.
f. The taxpayer must prove the elements of the loss he is claiming, such as the actual nature and occurrence of the event and amount of the loss.
g. The loss must be connected with the trade, business, or profession of the taxpayer.
h. The loss must not have been previously claimed as a deduction for estate tax purposes in the estate tax return.

Paano kung.. say.. customer ko.. tinamaan ng Yolanda (as in complete wipe out)... so sya tax deductible... paano naman ako kung di na sya makabayad? Di na rin nya maibalik ang mga goods as returns since dinala na rin ni Yolanda?

[mbk347]

Losses due to looters may be declared as income tax deductible?Henares | Inquirer Business

Losses due to looters may be declared as income tax deductible?Henares | Inquirer Business




Paano kung.. say.. customer ko.. tinamaan ng Yolanda (as in complete wipe out)... so sya tax deductible... paano naman ako kung di na sya makabayad? Di na rin nya maibalik ang mga goods as returns since dinala na rin ni Yolanda?

that's a great question boss... i hope somebody can help clarify this problem...

[_Cathy_]

Napanood ko kanina sa TV owner ng warehouse ng auto supply, 2 looter binaril at napatay kasi nagnanakaw sa warehouse. I wonder if the owner will be jailed for that e pinagnanakawan naman siya.

[170kphlang]

Napanood ko kanina sa TV owner ng warehouse ng auto supply, 2 looter binaril at napatay kasi nagnanakaw sa warehouse. I wonder if the owner will be jailed for that e pinagnanakawan naman siya.

i do believe no, because the owner was protecting his/her personal property and it is within his/her premises. if i'm not mistaken napanood ko din sa tv a few days ago ininterview yung isang atty. prof. ng ateneo and she said that looting is not a crime in a disastrous scenario like what happened in the visayas area, it is justified in the constitution during a "really" bad crisis where the right to life is in danger. as long as the items that are being looted are the basic necessary goods that are needed for survival like food, water, clothes, etc.. but if other items such as appliances, cellphones, or luxury items then it is qualified as theft like the one those that are killed in that auto supply warehouse, i don't think meron necessary for survival na item sa isang auto supply.

[marjako27]

i do believe no, because the owner was protecting his/her personal property and it is within his/her premises. if i'm not mistaken napanood ko din sa tv a few days ago ininterview yung isang atty. prof. ng ateneo and she said that looting is not a crime in a disastrous scenario like what happened in the visayas area, it is justified in the constitution during a "really" bad crisis where the right to life is in danger. as long as the items that are being looted are the basic necessary goods that are needed for survival like food, water, clothes, etc.. but if other items such as appliances, cellphones, or luxury items then it is qualified as theft like the one those that are killed in that auto supply warehouse, i don't think meron necessary for survival na item sa isang auto supply.

Ask lng po, meron ba nasabi sa news na particular items, how about kung batteries ang balak nila kunin.?

[_Cathy_]

nabanggit ng owner na wala batteries mga truck niya pero spare parts naman ngayon ang niloo loot. Batteries or spare parts, parehong hindi basic necessity naman yan.

[cardict]

nabanggit ng owner na wala batteries mga truck niya pero spare parts naman ngayon ang niloo loot. Batteries or spare parts, parehong hindi basic necessity naman yan.

Welcome back mam,yes only those basic necessities will be justify.

[wowiesy]

Welcome back mam,yes only those basic necessities will be justify.

tingin ko malabo yan... but the fact that there's a law.. that's a good start...

but i'm not too confident on how this will be implemented... sa law enforcement level.. even up to the court level...

masyadong pusong mamon ang culture ng Pilipino... even if there's a law na... ijujustify... okay may batas... naka mention sa batas specifically which items are covered.... pero the rest... not sure how the defense na kaya nag loot so it can be traded later for food...

sa law enforcement level... pulis mismo may exercise discretion (whether it is allowed by law or not)... question na yan..

sa courts.. well.. social justice makes the law bend over.. however sometimes the law doesn't mention where and when to bend...

even the press release earlier ni DOJ Sec about looting... Reason daw will prevail... for sure the looted have their reasons to protect their property.. while the looters also have their reasons to loot... so sa dulo... both will prevail?

[kinyo]

yung batas ni duterte madali lang intindihin ... "shoot the looters"

yung hindi nabayaran, declare as loss due to yolanda na rin

[badkuk]

imho, the BIR should consider tax shelter for all residents in the affected areas. Mayaman man o mahirap, matindi ang sinapit kay Yolanda.