THE Bureau of Internal Revenue (BIR) reminded businesses granting discounts to persons with disabilities (PWDs) of the requirement to record the information of customers presenting their cards.
“BIR will strictly implement existing laws and regulations to ensure compliance. Businesses must follow the prescribed guidelines, including checking the physical PWD IDs and recording the information before granting discounts,” it said via Viber on March 21.
“While businesses may not have direct access to verify IDs in real time, the BIR can cross-check the ID details against official records from the National Council on Disability Affairs (NCDA),” it added.
Senator Sherwin T. Gatchalian has estimated that fake PWD cards resulted in P88 billion in foregone taxes in 2023.
In a separate statement on Wednesday, BIR Commissioner Romeo D. Lumagui, Jr. affirmed that all tax privileges given by law to PWDs will be honored.
“However, the BIR will be strict with businesses which do not even follow the basic documentation and procedural requirements under Revenue Regulation No. 5-2017,” he added.
This refers to the rules and regulations implementing the Republic Act No. 10754, which expands benefits and privileges to PWDs such as the minimum 20% discount and value-added tax exemption.
The law allows establishments granting discounts to PWDs for goods and services to claim these discounts as tax deductions.
The BIR reminded businesses that each transaction must be properly documented, including duly-issued invoices reflecting the discount granted.
These documents should also bear the name of the PWD and their ID number.
Mr. Lumagui urged the public to report the manufacture, printing, sale, and use of fake IDs, with violators subject to prosecution for tax evasion.
“The sale and use of fake PWD IDs is not only tax evasion, it is also an act of disrespect against legitimate PWDs,” Mr. Lumagui said.
The Department of Social Welfare and Development said on March 21 that the pilot test of the unified Identification system for PWDs will start in July. — Aubrey Rose A. Inosante