Friday, June 6, 2014

SC stops BIR regulation requiring doctors to disclose fees


MANILA, Philippines - The Supreme Court (SC) yesterday issued another temporary restraining order (TRO) stopping the Bureau of Internal Revenue (BIR) from implementing its new regulation imposing additional requirements for registration of doctors.
This time, the TRO covers the application to doctors of BIR Regulation No. 4-2014 which requires self-employed professionals to submit affidavit indicating their rates and register their official appointment books.
The high court acted on the petition in intervention filed by the medical group Philippine College of Physicians (PCP) last month, according to SC spokesman Theodore Te.
The SC issued a similar order last April but only insofar as the assailed order applies to lawyers since the Integrated Bar of the Philippines (IBP) filed the first petition.
The new TRO, like the earlier one, is effective immediately and until further orders from the court.
Both the IBP and PCP asked the high court to declare the new BIR regulation unconstitutional.
The BIR issued the assailed regulation last month in lieu of an earlier directive requiring them to post visibly in their offices the rates they charge to customers.
Under the new rules issued by the BIR, self-employed professionals must submit an affidavit indicating their rates and register their official appointment books within 30 days from date of effectivity of these regulations.
The list should indicate the manner of billings and the factors they consider in determining their service fees upon registration and every year thereafter, on or before Jan. 31.
These new rules, the BIR said, are in line with the agency’s efforts to promote transparency and discourage tax evasion among self-employed professionals, a sector where tax evasion is believed to be rampant. 
Petitioners alleged that the new BIR rule violates the constitutional separation of powers of the three branches of government.
They said it “encroaches upon the court’s exclusive authority and jurisdiction to regulate and prescribe rules for the protection and enforcement of Constitution Rights, legal practice and the legal profession.”
The PCP yesterday lauded the SC for issuing the TRO on the BIR’s new policy that requires professionals to disclose their service fees.
“We see a silver lining here. We the medical doctors have taken the high road towards developing a culture of change to help the government’s advocacy in paying the right taxes. We assure the government that we will continue to lead our ranks in practicing honesty and transparency,” said PCP president Anthony Leachon.
Petitioners argued that the BIR order infringes on the constitutional right to privacy of lawyers and their communications with clients, which is also protected by Rule 130, Section 24 (b) of the Rules of Court.
They also argued that the assailed policy does not conform to the ethical standards set by the high court for the legal profession, particularly the Code of Professional Responsibility and Rules of Court which both require that the relationship between a lawyer and his client should be “strictly personal, fiduciary and highly confidential.”
They further said that under Rule 130, Section 24 (b) of the Rules of Court, lawyers are prohibited from testifying on any communication received from a client.
They also believe that the submission of a notarized list of services with corresponding rates makes it appear that the law profession is a “mere trade or moneymaking endeavor” instead of being devoted to public service.
Petitioners also expressed fear that the new BIR regulation would lead to “illegal restriction on the practice of law, as it unduly limits a lawyer’s liberty to ascertain the fair and reasonable value of his services according to standards defined by the Supreme Court.” – With Sheila Crisostomo

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