Not all earnings reflected in ITR – Henares

INTERNAL REVENUE Commissioner Kim Henares today told the impeachment court that not all earnings are necessarily reflected in the income tax returns that taxpayers file every year.

Responding to queries from Senator Francis Escudero on whether the income tax return is the only record of earnings, Henares said that some earnings are recorded or reported in other documents.

These examples include capital gains tax from the sale of real properties; final tax such as interest earned from bank deposits; and stock transaction taxes. In cases like these, Henares said, the earnings are not reflected in the ITR.

For example, interests in bank deposits are documented by the bank itself, and submitted to the Bureau of Internal Revenue. The same goes for the stock transaction tax, which is not listed in a taxpayer’s ITR.

The issue was raised after prosecutors said the tax records of the family of Supreme Court Chief Justice Renato Corona do not jive with the statements of assets, liabilities, and net worth that the Chief Justice submits every year.