In this situation, can income tax not be paid legally?

[fourtheboys96]

I included the word "legally" because my wife and I still want to be honest with this even though our taxes are being wasted by Tupas et al and the by the previous admin.

Anyway, here is the situation.

Wifey works in a multi-government organization. Their office sought official clarification from the government if they can be exempted from paying tax just like WB, UN or ADB employees (i'm only guessing they are tax exempt).

Unfortunately, their request was only partially granted with the top officials the only one being exempted from paying income tax with the govt saying the office was not established through a treaty or something to that effect. Kung sino pa yung mayaman at malaki sahod siya pang exempted tsk tsk tsk.

Now their office decided not issue any annual income declaration for the employees. The office they said is immune to lawsuits so they can do this. Now it is up to the employees if they will pay income tax or not.

Wifey always pay income tax even if I suggest that she don't ( at dadalawin ko na lang siya sa kulungan if ever hehehehe). Her tax alone is more than 4X my gross monthly salary as govt employee kaya nanghihinayang ako hehehe. Alhtough their office gives them extra bonuses as tax compensation. But still, baka lang legal hindi magabayad.

Plus the bottomline, balak namin bumili ng brand new na sasakyan this year for the first time laya any extra money is appreciated.

Anu sa palagay niyo?

[_Qwerty_]

kung yun ang sabi nang opis nila.. bakit ka magbabayad nang tax.. eh di pakulong nila lahat yung nasa opis.. tsaka pag nagkaron naman nang imbestigasyon yung mga nasa taas ang mapuputukan nyan..

i suggest wag magbayad nang tax..

[keithdb]

better to pay tax then have a tax refund kesa sa magkaroon ng kaso tapos taxable pala tapos pagbabayarin ka ng malaki para sa lahat ng taon na di ka nagbabayad.
Their office should have made a clarification with BIR first before saying na tax exempt sila mahirap nang makasuhan especially now na nagiging strict ang BIR. To be sure have a clarification directly from BIR.

[fourtheboys96]

better to pay tax then have a tax refund kesa sa magkaroon ng kaso tapos taxable pala tapos pagbabayarin ka ng malaki para sa lahat ng taon na di ka nagbabayad.
Their office should have made a clarification with BIR first before saying na tax exempt sila mahirap nang makasuhan especially now na nagiging strict ang BIR. To be sure have a clarification directly from BIR.

please read the original post regarding clarification for tax exemption.

[phezthie]

*TS: for clarification, what kind of multi-govt organization your wife is in? PM me if you cannot disclose it here...

since there was clarification already, it would be unwise not to pay anymore... or at least just pay under protest, to avoid prosecution.

the rule on payment of tax for income derived from WITHIN or OUTSIDE the Phil. is very much applicable. If the taxpayer's employees is being considered as a mere extension of a foreign country like embassy, consulate, attache offices and agencies, or organizations formed by treaties or with bilateral tax grant being observed, all employees, foreigners or Fil., are exempt for tax. it is being considered as income outside. conversely, if the company or organization is not enjoying such bilateral privilege or not a recognized world organization with mutual comity with our govet., then the income of its employees are being considered as income from within, hence, taxable.

[fourtheboys96]

*TS: for clarification, what kind of multi-govt organization your wife is in? PM me if you cannot disclose it here...

since there was clarification already, it would be unwise not to pay anymore... or at least just pay under protest, to avoid prosecution.

the rule on payment of tax for income derived from WITHIN or OUTSIDE the Phil. is very much applicable. If the taxpayer's employees is being considered as a mere extension of a foreign country like embassy, consulate, attache offices and agencies, or organizations formed by treaties or with bilateral tax grant being observed, all employees, foreigners or Fil., are exempt for tax. it is being considered as income outside. conversely, if the company or organization is not enjoying such bilateral privilege or not a recognized world organization with mutual comity with our govet., then the income of its employees are being considered as income from within, hence, taxable.

As much as I want to disclose it, I regret that I'd rather not simply because I really cannot do anything to change the situation.

What baffles me is that top officials (directors and dept heads) are exempt from paying tax and the others are not. Of course the officials did not contest this decision because they fear that the government might reverse the decision and obliged all of them to pay income tax.

Anyway, I'll just give a description of this organization.
An organization of Ministries/DEpartments of Southeast Asian Countries (but not an ASEAN office).
This organization has many centers located in various locations in member countries.
I've heard it is not created by a treaty (the reason they are exempted from paying tax).

[phezthie]

its alright, i do understand why you cannot..

anyways, BTT: there are occasions that top officials of multi-organizations are exempt from paying taxes because they are included in another tax comity arrangement. it means, its selective exemption. however, this happens only when such organizations are not for proprietary purposes and its top officials are duly recognized by our govt as such and, most often than not, they are foreigners who are likewise being considered as foreign govt officials..

one example is Panama Maritime Authority doing the processing of papers of seafarers in the Phil. Before, its top officials are not exempt from taxes but after the recognition made by our govt thru the DFA, they are now exempt. Likewise although PMA is independent or separate agency not in any way connected with Panama Embassy (the latter is exempt of course BTW), its top officials were given such privilege after said embassy endorsed that PMA's officials are being considered as govt officials of Panama.

[CVT]

Nasa collection mode ang BIR sa mga panahong ito....

14.6K:dj:

[keithdb]

sir phezie, sa ganitong case ba eh yung employee na ang personal na magfile and bayad ng tax instead na yung employer ang magasikaso?
parang hassle naman kung ganito, wala ka na ngang tax exemption ikaw pa magaasikaso.

[phezthie]

technically yes, as a general rule, the employee is the one who must file and pay the corresponding income tax... however, if the employer is likewise a withholding tax agent and regularly withholds withholding tax from its employees and such amount withheld is the actual amount of tax to be paid, or sometimes higher, then there is no need to file provided that he is one of those falling under the enumeration of individuals who are not required to file income tax return, as follows..

(a) An individual whose GI does not exceed his total personal and additional exemptions for dependents
Exception: Regardless of the amount of GI, those (citizen and alien ) engaged in business or practice of profession within the Philippines;
(b) An individual with earning pure compensation income, derived from sources within the Philippines, provided, the income tax on which has been correctly withheld
Exception:. Individual deriving compensation concurrently from two or more employers at any time during the taxable year:
(c) An individual whose sole income has been subjected to final withholding tax; and
(d) A minimum wage earner as defined in NIRCode or an individual who is exempt from income tax pursuant to the provisions of NIRCode and other laws, general or special.