Rewards for tipping off tax-evading social media influencers were still subject to tax, according to BIR.
The Bureau of Internal Revenue (BIR) said that rewards for tipping off tax-evading social media influencers were still subject to tax.
Manila Bulletin reported that even BIR rewards for tipping off tax-evading social media influencers were still subject to taxation.
Under the new reward payment schedule, an informant will get 10% of whatever the BIR collected but the amount must not exceed PHP 1 million and each reward was subject to 10% withholding tax.
At the same time, the BIR encouraged the would-be tipsters to double check first if the names of social media influencers that they wanted to tip-off for tax evasion were not yet on their target list.
Otherwise, tipsters would end up empty-handed as the Bureau of Internal Revenue on Tuesday stressed that they will not pay for any information that it had already in possession of.
READ ALSO: BIR Issues Memo To Remind Social Media Influencers Of Their Tax Obligations
Recently, BIR Deputy Commissioner for Operations Arnel SD. Guballa issued the clarification as the agency urged individuals to report social media influencers that include vloggers who didn’t declare their huge income as payment for their social media platforms services.
According to Guballa, informants should submit the confidential information under oath to the legal division in the regional or national office and were allowed to use an alias in order to protect them from retribution.
The tax reward law was enacted over 20 years ago with the original reward was fixed at 10% of the total tax take. Based on a report, relatives of revenuers within the fourth degree of consanguinity were disqualified from the said program.
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