SEC, BIR sign data exchange deal

MANILA - The Securities and Exchange Commission (SEC) has signed a data exchange agreement with the Bureau of Internal Revenue (BIR) to help in each agency’s investigation efforts.

The two agencies are now partners in the SEC’s Swift Corporate and Other Records Exchange (SCORE) Protocol. This allows them to share data and information of companies and the directors to aid in their respective probe of some corporate cases.

SEC Chairperson Emilio Aquino said the agency can offer information to the BIR in a much quicker way. This can aid in improving tax administration if BIR gets very important documents on a particular case.

“Immediately they would be able to get the financial statements, audited financial statements, balance sheet, income statement, cash flow statements, changes in stockholders equity. Mabilis yan for purpose of investigation,” Aquino said. 

BIR Commissioner Romeo Lumagui Jr. is also happy with this new agreement as most of the time, they would need information on investigations about corporations or directors of companies.

“All records like the incorporators, directors of companies, the financial statements that were submitted with the SEC. They will share with us those documents. And what’s good about it is they’re committed to giving it within, the turnaround period is around 24 hours,” Lumagui said. 

The BIR, on the other hand, can also provide and verify information on the Tax Identification (TIN) of businesses and individuals. The SEC would need the correct TIN to ensure that the companies or individuals registering their business are legitimate business owners or have legitimate tax accounts. SEC can revoke business applications if TIN does not match records with BIR.

“We noticed a number of incorporators, may mga fake na TIN, Fake yung TIN- that’s ground for revocation…Importante sa atin immediately pwede natin ifilter out,” said Aquino.

Aside from this partnership, the SEC has also launched several digital initiatives to make it much easier to register businesses. 

Some of these new programs are the  SEC Zuper Easy Registration Online (ZERO), Electronic Submission Authentication Portal (eSAP), SEC Foreign Investments Registration Station (FIRST) Green Lane Unit, and the Electronic Application for Modification of Entity Name and Data (eAMEND).

All of these new digital initiatives, Aquino said, will allow Filipinos here and abroad, and foreigners to register a business in a much shorter time. He told reporters one can even register a business in just a few seconds online if they already have complete documents.

“Everything digital na from beginning to end. … Before magsubmit ka pa notarized copy, the ones with wet signature, now no need. Why? Because it has been digitally authenticated,” Aquino asserted.

The SEC also assured the public that though it is easy now to register a business, they have also intensified ways to check if the information is correct and the businesses are indeed legitimate companies. He said, “May mga vetting na to ensure na hindi niya gagamitin, make use of a fake TIN.”