BIR regulation and the right to privacy

The recent buzz in professional circles is related to a significant Supreme Court decision that struck down a Bureau of Internal Revenue (BIR) regulation that requires self-employed people – such as accountants, lawyers, doctors and dentists – to record their appointment schedules and file tax returns. for tax compliance monitoring services. The ruling marks a key change in the landscape of business tax obligations and has sparked widespread discussion among affected sectors.

This ruling was issued on the basis of a joint petition filed by associations representing self-employed persons, namely the Integrated Bar Association of the Philippines, the Association of Small Accountants of the Philippines, the Philippine College Physicians, the Philippine Medical Association and the Philippine Dental Association. The petition challenged BIR Tax Regulation (RR) No. 4-2014 and stated that these requirements would cause professionals to violate confidentiality agreements with clients.