Tuesday, June 7, 2016

BIR starts issuing eCAR to combat tax syndicates | mb.com.ph | Philippine News

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The Bureau of Internal Revenue (BIR) has started issuing electronic Certificate Authorizing Registration (eCAR) to stop the sinister activities of tax syndicates responsible for stealing huge amount of capital gains tax (CGT) payments in the process of transferring real estate title from seller to buyer.

In signing Revenue Memorandum Order No. 22-2016, BIR Commissioner Kim S. Jacinto-Henares noted that “due to instances in the past where spurious CARs had been presented to the Register of Deeds (RD), the BIR developed the eCAR system” to collect the right amount of transfer taxes.

Henceforth, she said “the issuance of manually prepared CARs as well as the generation and issuance of a tax clearance (TCL) in the integrated tax system (ITS) shall be stopped.”

The BIR chief noted that the government is losing significant amount in CGT and documentary tax due to syndicates that maneuver secretly the registration of fake CARs with RD.

The BIR issues the CAR upon payment 6 percent CGT and 1.5 percent documentary stamp tax which rates are based on the zonal, or fair market value of the property, whichever is higher.

Henares believed that the new system will put an end to the nefarious tax stealing racket.

She explained that the eCAR system is a web-based facility that automates the processing and generation of CAR with bar code and is linked with the Land Registration Authority (LRA).

She added that through the BIR eCar verification system, the LRA-RD can verify online the authenticity of the eCAR presented in support of the transfer.

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Read more at http://www.mb.com.ph/bir-starts-issuing-ecar-to-combat-tax-syndicates/#px8co1zzZz8IzKBZ.99