At the very least, they are not filing any tax return. At the extreme, there is at least 4 billion pesos worth of taxes that is not being collected. A few years ago, a friend who had his business registered with the BIR more than a month after the SEC registration was charged P50,000 in fines. Assuming that the minimum fine that those companies are liable is P50,000 a piece, the government should be able to make at least four billion from the delinquent entities.
“The Bureau of Internal Revenue (BIR) said about 80,000 companies were not registered with it and therefore were not paying national taxes.
BIR Commissioner Lilian Hefti said her office discovered this when the taxpayers databases of local government units (LGUs) were compared with that of the BIR. The matching revealed that quite a number of businesses that were registered with the LGUs were not in the BIR records.”