BIR suspends anew order requiring taxpayers to report bank deposits

The Bureau of Internal Revenue (BIR) has suspended anew its old and unimplemented order requiring taxpayers to disclose their bank deposits in their income tax returns (ITRs). In signing Revenue Memorandum Circular 41-2016, BIR Commissioner Kim S. Henares said implementation of the so-called Annual Information Return (AIR) disclosing bank accounts will remain optional on the part of taxpayers filing their 2015 ITRs which deadline is on Friday. The BIR chief issued the circular despite rising clamor from various sectors for the scrapping of the Bank Secrecy Law (BSL) following the $81-million money-laundering of Bangladesh funds involving a local bank and casinos. Henares issued RMC 57-2011 years ago to compel taxpayers to disclose their bank accounts so the BIR could determine the sources of these funds and collect taxes from unexplained wealth. Ms. Henares said then there would be no need to pass new tax measures to raise taxes if the [...]