I lost my faith in the International Express Mail Service (EMS) in the Philippines. And lost a certain amount of faith in the country in the process.
I had two packages sent from abroad to the Philippines, worth $17 each. Both were sent on the same day. One was delivered right at my doorstep, and was paid P35.00.
The other package didn’t arrive. Instead, I received a parcel notice from EMS, informing me that I need to pick up the package at the EMS head office near the domestic airport in Pasay City.
It is the dreaded parcel notice — sent to unsuspecting recipients when your parcel has caught the eye of an EMS vulture. I mean, employee.
Sure enough, I was told that I needed to pay “taxes” worth P4,000 ($90). It didn’t matter to them that then pen was worth $17, and looked like it. It didn’t matter that it has been marked as a gift. I needed to pay the “customs tax” — which coincidentally will not reflect on the receipt. Only the P35 handling charge will be indicated.
Looking around, you could see an old man wearing tattered clothes, begging at the counter to “untax” a second hand PSP. Speaking in Filipino, he explained that his sister in the States sent the old PSP for his grandson. He couldn’t afford P6,000 worth of taxes. He barely has enough to go back home.
Disgusted, I left the package at the EMS, and decided to check the probability of packages being held up by EMS in the Philippines. I had 5 more similar packages sent in a span of 8 days — same weight, same mailing address, same value, and all marked as gifts.
The results: Packages 2 and 5 arrived “unharmed.” Packages 1, 3, and 4 did not. They were unlucky enough to be served with parcel notices.
I initially thought we are only victims of an antiquated tax system by Customs. Proof of this is the fact that Filipino tourists are only allowed a maximum of P10,000 worth of imported goods to bring home. Regardless if these are of personal use. Regardless if you had to purchase an entire set of clothing because the airline lost your luggage. (FYI, in the United States, residents are allowed to bring in up to $800 worth of goods, tax free.)
However, even worse than this illogical tax system are the existence of corrupt & evil personnel at the EMS.
We have always heard anecdotes about missing packages, opened parcels, and illegal taxing of items by the EMS. And we thought that in this day and age, it has disappeared entirely. After all, internet has penetrated the country, lessening the amount of mail being sent out. Surely the EMS would want to preserve their business by offering a highly improved service?
But decades & presidents have gone by, and this corruption still exist. And you wonder if there will ever be a solution. And you wonder if anyone would go out in the streets to correct this. It is so much easier to gather a crowd to oust a President than to fix these deeply embedded corruption in government agencies.
I’ve heard horror stories and experienced a little of it sending things to the ROP. Being taken for a large, inexplicable fee is angering. I think almost worse than that is the inconsistency displayed. EMS to other parts of the world in my experience has been a reliable way to ship. I’m sorry to hear about your ordeal.
It is an unimaginable price.We are sure that you will get a satisfaction with our outstanding
chi hair tools service.
I have only received my notice this day and I am really afraid that they are going to overtax me. It was my first time to receive a package shipped via EMS so I searched about it and came across this story and many other stories complaining about their taxing policy. I doubt that this problem would be resolved if it has been like that for years. I guess I just have to bring my paypal transaction and print out so they wouldn’t question me about the value of the items.
It will be my first time too. Agree, I would bring my paypal receipt I think….
It’s very sad that these things happen. I’ve had similar experiences when I receive review units for gadget accessories from other countries.
Php4k tax for a US$17 pen, and Php6k tax for a pre-owned PSP?! They probably need a new calculator.
Its almost a lottery it depends who at the EMS opens your package. So far I have been lucky. Better off if its not in a hurry to send a Balikbayan box.
I had the same experience here.. I usually use EMS to US and even Jordan but no problem encountered at all. I wasn’t expecting though that they will rip me off in my own country. I sent a package to my client worth 2600php. Tracking said it was in customs 3 days after the package was sent but it took 1 week before my client received a notice from Philpost Pasay for pickup… tax is 2700php which is so absurd coz its 100% of the total cost of the items sent. What a SHAME to those corrupt individuals in EMS Pasay. Filipinos ripping off other Filipinos.. disgusting thing to do.
wow you pay more for tax than for the item + shipping/handling
this article is very good, im going to include this one to my
custom term papers God Save the Philippines
I never thought that when ordering something from abroad on the Internet, I would have to go to Pasay City (while I live in Mandaluyong City) to get a parcel…while the guards downstairs in my building take care of all the mails and packages.
So I had to go all the way there…2 hours back and forth, 45 minutes there even if there were only 3 other people in front of me…and 10 employees, each one with a very specific and limited taks like:
#1 Get your notice and ask a signature
#2 Go get your package
#3 Open the package in front of you (might be the same as #2 in some cases)
#4 Check what guy #3 is doing (I guess guy #4 went for a pee because I had to wait before guy #3 could open my parcel)
#5 Computes the taxes you’ll have to pay (actually I’ve had guy #5b to do the math, because he told me “Hey, you’ve been waiting for quite some time now…come, I’ll take care of it.”…that way, guy #5 then just have to copy what the other had writen…looks like guy #5b wasn’t empowered to fill the required papers)
#6 Collect your taxes
#7 Ask your signature and collect the PHP35 (no, girl #6 wasn’t empowered to collect those PHP35)
#8 Check that you leave with your package and ask (another) signature
I guess my package was a little bit too big, or a little bit too heavy…so even if it were written Gift, 35$ and old lens (and indeed it looked old, but unfortunately as it was old it was huge and heavy), I had to pay like PHP4000…I really wonder how much the guy who received a tiny laptop (I bet a *whole* lot more expensive that my old lens) had to pay…
So 2 things bother me:
– who eventually get the money from all those taxes?
– why the hell do I need to spend 2h45 to go to the post office, while the person who sent me the package already paid so that the package reaches me…
What Online Shoppers and other Filipinos that receives packages from other Countries need to do is to contact Mr. Mike Enriquez and have them “Investigate” the EMS Office in Pasay.
I’ve been to other Countries and I have to say Philippines has the worst Employees who works in the PhilPost.
Compare Canada and Philippines on that. In here if Your mail is “Registered” no matter if it’s EMS, DHL, FedEx, etc. then You will get taxed no matter now much is the total price of the item/s is.
In Canada You will only get taxed if Your items are over $200 and what’s more is that Registered or not Your items are delivered to Your Doorstep.
But enough about that. Let’s see how You should really be taxed if those EMS Employees are actually doing the right thing.
Let’s see Your item is worth $17 so let’s jut say that it’s 800 pesos (Let’s just round it there). That doesn’t include the delivery cost.
Declared value: 800 pesos
EMS Freight cost: 200 (Let’s jut say it is 250 pesos)
TOTAL : 1,000 pesos
Customs duty fee (10%): 80 pesos
EDS (Fixed) : 265.00
IPF (Fixed) : 250.00
TOTAL (subject to 12% VAT): 1595 pesos
12% VAT: 1786.4 pesos
Import Duty taxes: 80 pesos
EDS (fixed amt) : 265 pesos
IPF (fixed amt) : 250 pesos
12% VAT : 191.4 pesos
TOTAL Taxes Paid: 786.4 pesos
Customs Fee : 35.00
They don’t have the right to get 4,000 pesos from You. And seeing as those Corrupt EMS Officials didn’t bother to do that then they are probably going to “Take” the excess money from that 4,000 pesos You payed them.
Actually I also remember of something: there was some ratings on a board. At first I thought it were exchange rates, as there were names of countries and rates, but those rates didn’t make sense as for the US it was around 45 while for Europe it was around 1 (at that time USD1~PHP50 and EUR1~PHP65). I remember that the guy multiplied a number with that 45, and at that time I thought that if I had bought that same thing from Europe or Japan, I might have had to pay a lot less…
Also I don’t know why but another package I received from the US arrived straight in Mandaluyong City (it’s still not at my doorstep but at least it’s in the city where I live). It was a refurbished thing I bought on ebay (meaning it wasn’t a gift) and it was labeled USD135. About 2 minutes after arriving at the Mandaluyong Post Office the guy there was back with my package. He asked me “Is it the first time you receive something worth more of USD50 from abroad?”. I said yes. “Because you’re supposed to pay taxes if it’s more than USD50, whatever it is. So next time, be careful”. I then gave him my PHP35 and left…
hi! i am so worried now about my package. i purchased 100$ worth of clothes from an online store based in china. they sent the package on november 19. on nov. 20, the status was “despatch from sorting center”. but until now, i haven’t received it yet. im so disgusted coz i am supposed to wear one of the dresses on my friend’s wedding on the 18th. i wonder wehre my package is now. im from quirino province. i dont know if the christmas season is what’s delaying it since many packages are sent during this time.
Leche mga taga customs na yan! Di nila i-evaluate ng mabuti ang packages. Buti sana kung napupunta ang binabayad na 4k para lang sa mga murang gamit na pinadala sa akin. E hindi e. Di nila ayusin sistema nila. Badtrip, tang*na!
Tas para makalusot sa lecheng tax na yan kailangan may kakilala ka pa sa customs! Paano aasenso ang bansa na ito?
Nakakainis! Grrrr! Tas one time ang declared value ko is $100 lang free shipping. Tinaxan nila ako kasi sabi nila $300 daw.. KASAMA DAW SHIPPING FEE SA I-TATAX?! WTF?! TANGINA TALAGA!!!!!!!
When computing for customs duties/taxes, also include the shipping charge for the total cost. For example, even though the price of the item is just 30$ but the shipping cost is for example $30 also, for a total of $60, pasok na yan sa customs duties since lagpas na sa $50 na nirerequired for tax. There’s also a helpful thread in ebay regading customs duties computation here in the Philippine. I think for computer/laptops and components, there’s no customs duties but you still have to pay for the 12% vat as well as some processing fees.
@damesdale
You might have to pay some Tax depending on the price of the package. Seeing that it’s clothes then it should be around 10% tax, You might have to pay around 1,000 (If You land on an Employee that ain’t corrupt).
About Your package, it should still be in China. Because after getting dispatched from the Sorting Center, it should arrive at the Outward Exchange Center or something like that before it gets delivered to the destination.
Now it’s either that or they forgot to put in that Your Package already arrived and was dispatched from the Outward Exchange Center.
And at around mid-November or sometimes as early as October, the packages from other Countries will be getting delays, especially from China, I’ve ordered something from China using Airmail last October 21 or so and it just arrived last December 6. And I got my package from China that was sent via EMS (Ordered at November 12) at the same day I got my Airmail package from China.
So expect some delay on Your Package from China, otherwise it might be being held up at our Customs Department.
ti KAMILE>> you better inquire first to ems philippines regarding your item if its for pick up.
to BRIX CHUA>> really? you have a proof? because if you dont. you better shut up coz your non sense
TO energize or refresh your mind:
P35.00 is for the delivery fees or PTCC OR PETITION TO CUSTOMS CHARGES.
ask ko lang baka po alam mo…nagsend ako ng bag galing japan to phil then sinisingilan ako ng 3000 mahigit…tinanong ng mom ko kun bkit need nmen magbayad e2 daw sagot “eh kasi ho baka my laman ung package” my mom said”oo ng my laman,my lamang bag yan” “hinde ho baka my laman hong pera” tama po b yan? then ayaw tlg nila irealese ung package hagga’t d kami nagbabayad…2mawag at nagdirect p ko d2 s post office ng japan at sb nila wl n daw pananagutan pagnkrating n daw s pinas ung package pero tinulungan p ren nila ako 2mawag sila s EMS d2 s japan at sabi ns custome officer daw nagdedecide kun my bbyaran png taxes or whatever….natapat daw ako s officer n alam nyo na…tsk..tskk…sobra n tlg..
ps…walang pera ung package ko its just a gift (bag) for my sisters bday…
I have a same prob. to moonshine. I sent nokiaN95 on dec.14,2009 for my brother as a Xmas gift.
But until now he still waiting for that…
My mother sent us a package through EMS last Dec. 5. It usually takes 3 to 4 days for the packages to arrive. But alas, it took 6 days and THERE WAS NO PACKAGE! Just a letter that has some “FOR INSPECTION” stamped all over it. The contents were just a couple of pairs of shoes, some shirts and candies for the kids. My grandmother went to their Pasay office. They told her that she needed to pay around PhP4700 for “tax purposes”. She was shocked, because the contents of package wasn’t even worth 4k! They didn’t care and proceeded to tell my grandma that she must pay tha supposed “tax”. EMS has been our courier since I was a kid and this was the first time that it happened. Most of the goods that my mom would send would either be used or just junk. If you don’t pay the tax, they get to keep your package. My grandma had to borrow 5k asap. The system here is so freaking corrupt. They’re abusing the fact that Christmas is drawing near. I hope karma bites them back. >:(
I also forgot about the lady that has some shampoo sent to her from Japan that was only worth around 1200 pesos. They were making her pay 4k, too! She asked them if it was possible to have the package be sent back to Japan, but they said that it wasn’t. :| I guess they keep the packages from themselves when it goes unclaimed.
i am now in fear that i might not receive the phone i bought from an online store based in china.
if incase the pricks will put a halt on the delivery of the package as well as if the will make me pay tax more than that of of flat amount of my package, i will ask them to compute it for me and probably ill be refuting such computation. in fact, these guys are not accountants and are not tax auditors,so there should be no reason why we’ll just keep our silence about them puting tax on something that they themselves dont know how much is the lawful tax that is to be placed on an item.
if incase they will make threats, probably i will also do some threatening of my own.
we shouldnt just bow down to the threats and tricks of these no good sons of bitches.
Hurray to you!!1
I think threatening them is a good idea. two days ago I paid P3165 custom tax for 1 camera lens..arrrgggg……please tell me how to do that because i’m expecting a dslr from my aunt in the US next week and i don’t want to pay anymore custom tax…
wah T_T omg are you serious…. right. hmmm
im waiting for my iTouch to come… by EMS. now i dont know how much tax will I get for it T_T… im just a kid… so how am i supposed to pay for the “customs tax” T_T
oh, my, i think my heart beat fast right now, cos i have package also from china its worth is less than 5000 pesos,,and it was almost 18 days after the dispatchedfrom the destination ,, hope i could get my package now, =(
now i am scared of getting my parcel. All these talks about these corrupts jerks! I wish i had the money and the logistics, i would have someone shoot at these corrupt employees. Dead or alive i don’t care. As long as ma perwisyo din sila! That will also grab media attention.
mamatay nang mangakurakot sa PhilPost. mapahimuslanon! letsi!
deim it!!EMS rily sucks.. imagine, overtaxing policy is very unreasonable,n asking u to pay for it, it worth mor than the items invoice sobra sobra~ and aside from that we shudnt need to pay “custom tax” kc its already paid frm d country origin ee! .. currupxn system ng custom..if you hav family abroad tell them na.. ang KAKAPAL NG PAGMUMUKHA NILA.. KARMA BITES THEM BACK.. HELL IS THE BETTER PLACE FOR THEM.
BAKIT KA NAMAN MAGBABASA?
ANO BA MAPAPALA MO PAG BINASA AT PINAG ARALAN MO YUN?
BAKA HINDI KAYANIN NG UTAK MO ;)
BAKA SUMABAOG PA ITO KUNG HINDI TALAGA KAYA ;)
You destroy a person’s reputation by telling bad things about them. These things don’t even have to be true. However, if other people believe the stories that you are telling, then you will destroy the person’s reputation.
Now, as a general rule, destroying a persons reputation is not a very nice thing to do. None of us are perfect. We all have things in our closets that we would rather the world at large not know about. So, if you start ruining other people’s reputations, don’t be surprised if someone else doesn’t come along and do it to you. People who go about tearing others down usually aren’t very well respected.
I would just make one exception to the above caution. That is for people who have truly undeserved good reputations. If someone is hiding evil behavior behind the veneer of a good reputation, then that veneer needs to be stripped away to protect society from the evil person. However, before you do this, you better be sure that you have the evidence to back up you accusations. Destroying an innocent person’s reputation is, in itself, an evil thing. So don’t be part to that.
Comments
Not that I want to do that. Just a question which leads to another…
Report by Max Power on August 6th, 2006
—O. K. —
Report by bignose on September 30th, 2006
This is some good shit.
Report by WildAboutJenkem 13 hours ago
Add a comment…
OH C’MON UR JUST A KID? ;) ;
HOW COME WHEN U WANT TO BUY SOMETHING IN E-BAY DOES IT EXEMPT U BCOZ UR JUST A KID?OH OH OH ;D
I DON’T THINK SO. :P
I’m so scared of my ems package. After reading numerous stories about the “fees”, I’m beginning to think that I “may” become a victim. My orders were 3 personal items, 1 is like a milk powder, and the other 2 were supplements intended for 1 month use. I tried searching for a good information if its taxable or not… heck I spent an hour and found nothing of help, government websites were the most useless of them all!
I’d be happy to pay the taxes, and I see some people here are irritated by the complaints. But the truth is, people like me are left in blank. Sites like philpost don’t even try to put a proper FAQ on what items are going to fined, taxed, or held for?
Isn’t it also their responsibility to give out the proper information? They don’t need commercials, just a simple website with great documentation is enough!
For example, I want to know what happened to my items and fees I may accumulate, but its a Saturday and its 8 pm, I can’t call their office, no 24 hour service, but they do say on their site they send out mail 24 hours… How can they do that when they don’t have any personnel left in their office past 5 p.m. and no staff to ask for help on weekends and holidays? [b]24 hours my ass! [/b]
And so I will just have to wait for Monday to call their center and find out whether or not it is being held and taxed for. Because with all the fees they have been asking, they just don’t have the capacity to put up a decent site with decent information, and not some unwanted news that don’t give any ASSISTANCE!
Its embarrassing. You see Manny Pacquio in there main page, and see under construction when you check on the help link.
[b]Stupid and lazy agencies, TARIFF AND CUSTOMS CODE HUH? WHERE CAN I READ IT? CAN ANYONE GIVE A LINK MADE BY THESE AGENCIES ASKING FOR MONEY? DON’T WE HAVE THE RIGHT TO KNOW WHY, WHAT, AND HOW THEY DERIVED THE AMOUNTS ON SUCH THINGS? IT IS THE GOVERNMENTS / AGENCIES DUTY TO INFORM THE PEOPLE!
OR DO I HAVE TO STUDY LAW AND BUY A CUSTOMS CODE BOOK? STUPID..[/b]
mga balahura at balasubas yang mga yan!!! lalu na yung mga nag de deliver na kakapal ng mga apog na sapilitang nang hihingi ng tip binigyan ko na nga ng 200 pesos! tapos nag reklamo pa!.. sabi pa nya! [i]sir kulang pa po to kc may babayarang 35 pa kayo at dalawa pa kami dagdagan mo naman…[/i] aw lagi yan sa twing darating bagahe ko galing japan…
BAKIT SA LBC, DHL FED EX,TEC..
PAG NAGPADALA KA WALA BANG CUSTOMS CHARGES? ;)
I think some irresponsible parents doesn’t know that their kids are buying some stuff thru the internet.
They don’t know that their children knew their codes and password even in their credit cards.
So be a responsible PARENTS and know what your children CAN DO. :o
hello po..
i only asked my driver to pick up the item bec. it’s my first time to encounter this. the first time i bought an item from US i only paid 35 pesos. the driver said the lady won’t give her name daw but she is in the customs area.
I think dapat mas maging CAREFUL tayo sa maga GINAGAWA at SINASABI natin..
THINK FIRST and ALAMIN natin yung mga DAPAT before SAYING ANYTHING..
1. Ang EMS o PHILPOST ba at BUREAU OF CUSTOMS ay under ba ng iisang agency na government owned?
2. Pag nagpapadala ba tayo ng mga sulat o package alam ba natin kung para saan yung mga binabayaran natin? kung para sa STAMPS AT FREIGHT lang?
3. Alam ba natin kung lahat ng bansa ay may EMS?
4. Alam ba natin kung ano ang mga PUWEDE at HINDI sa mag ipapadala natin para hindi nagkakaroon ng problema?
5. Nilalagay ba natin yung tama sa DECLARATION?
6. Sino ba ang nagpapataw ng TAX?
SINO BA ANG DAPAT SISIHIN???
This is the procedure of EMS Philippines according to them. All IEMS item is automatic for delivery right at your doorstep. Everytime the EMS Philippines recieve a parcel. There is a Customs Department Representative who’s checking for those parcels that is possible taxable for customs duties and taxes. Possible? Does it mean they’re not sure? Yes they’re not. Because there are some false declaration in the parcel’s content. We all know that! Most addressee say that it’s just a gift why is it for customs examination? They use that gift exemption in order for them to easilly recieve high valued items without paying the Customs Charges. And that’s Illegal. So if the parcel is for customs examination and the addressee is within the range of CMEC delivery are. Automatic it is for pick up at Customs Department at CMEC office.
I got the same problem with my package but still the burden of my relatives in the phil to get the gifts wherein they got taxed for almost 2,000php is ridiculous. This is not good for business and obviously creating a stir due to corruption. I’m bitter to those people in the post office.
To VDT. not a custom matter? But it is the Customs who declared the tax. By the way what’s the name of the lady? Is she from the Customs or EMS? Whats her position their?
hi! i’ve purchased a headband online and it costs 228 dollars but was discounted to less 20%= 182.4 dollars and has a shipping fee of 32 dollars. but the lady from EMS phil post office was asking for 4048pesos total before i can get my item. they gave me a 15% declaration tax (seems a little too much) which they based on the original cost of my item and not the discounted rate (228 + 32=260 dollars). i’m wondering, where the tax should be based on? is it the discounted rate or the original price of the item? i asked my friend who knows someone from customs and they say it’s out of they’re hands bec. it’s not a custom matter?
after reading all your stories, my heart started pounding very fast. i have just bought 5 pieces of replica shirts from china like a&f and ralph lauren shirts which actually costs around 13 us$ each but the tag price says 100$+ each. the seller used EMS in shipping last week 4th january. i’m afraid and been wondering if it got stocked at the EMS Pasay office as well. it kept me thinking how much money they will screw out of my son’s pocket. hope and pray it would not be too much for my son to pay.
OMG! All of you are so mad huh. Do you really think guys that this is the right thint to do? Complaining on this site, trying to destroy the EMS Philippines reputation by posting comment here that they are corrupt and etc. I think all of you should ask your self first if you know the Rules and Regulations, SOP and the Terms and Conditions of sending an International EMS package. Never compare the Customs of Canada to the Customs of Philippines. Think! They are different country with different laws. Customs Department is not a private company. It is a government agency. When you send an IEMS merchandise you will only pay for the Postage Fee. Which means, the country of destination is the only one who have the rights to collect the customs charges if the merchandise is taxable for customs charges. You should know that first before you send an International Parcel because if you dont. Then you’re like an idiot Captain of an Amry who’s sending his man in a battle without informing them who are the enemy and what are their task. For those who are complaining regarding the amount that the Customs collect from their parcel. I think this is not the right place to make a complaint. You know guys for me all of you are nothing but a babbling dumb ass. If you think your right then prove it by making them EMS officials pay for their sins. If you want you can ask for the help of IMBESTIGADOR or XXX. Because if you cant then your nothing but a LOOSER, an IDIOT and a FRAWD who’s blaming their mistake to others.
and btw, I think only EMS delivered parcels are dropped on the Pasay office. So if you want to avoid the people there, you can also try other international methods such as air mail, priority mail, standard flat fee, etc. I think those are dropped to your nearest local post office although it would more time than EMS. The local post office might still charge you though, especially if they have a customs personnel there. If not, siguro 35PHP lang ang sisingilin sa yo.
When computing for CUSTOMS DUTIES/TAXWS, also include the SHIPPING CHARGE for the TOTAL COST. For example, even though the price of the item is just 30$ but the shipping cost is for example $30 also, for a total of $60, pasok na yan sa customs duties since lagpas na sa $50 na nirerequired for tax. There’s also a helpful thread in EBAY regading CUSTOMS DUTIES/TAXES COMPUTATION here in the PHILIPPINES.
1. KNOW THE PROCEDURE, RULES AND REGULATIONS, SOP AND TERMS AND CONDITONS.
2. NEVER COMPARE THE LAWS HERE IN OUR COUNTRY AND THE LAWS OF OTHER COUNTRY.
3. KNOW THE DO’S AND DON’TS, THE RATES, THE FEES,
4. WRITE THE RIGHT DECLARATION NOT JUST “A GIFT”
5. OR ELSE YOUR NOTHING BUT A LOOSER, AN IDIOT AND A FRAWD WHO’S BLAMING THEIR MISTAKES TO OTHERS.
yes :) :) :) :) ;) ;) ;) :D :D ;D ;D ;D
3 TAX MISTAKES MADE EVERYDAY:
1. KEEP BUSINESS AND PERSONAL AFFAIRS SEPARATE
It might be overstated to say that never the twain shall meet. You might often do things with a dual motive — say, having a pleasant lunch with a business colleague, going on vacation with your best client or buying a vacation home that you also intend as an investment.
However, you’ll be better off if you can separate your tax life into business and personal categories. That might sound radical, but it’s really just following the tax code. As I look back over a 30-year career as a tax lawyer, I can think of many big, messy and expensive tax disputes that came down to a violation of this fundamental divide.
The person who forgets this rule and tries to morph personal matters into business is asking for trouble. I’m thinking of people who:
A. Try to deduct the cost of their divorce because their business is at risk.
Taxes for the self-employed
B. Try to deduct a miserable vacation with a client.
C. Claim that a hobby is a business.
Sure, there are many provisions in the tax law that explicitly recognize the dual purposes many of us have in pursuing activities and purchases. Still, try to avoid such dual-purpose goals, and do your best to categorize things appropriately. I think you’ll make your tax life easier. (For more, see “5 tax myths that can cost you money.”)
2. KEEP GOOD RECORDS
Most of us at one time or another violate this edict. You might think keeping good records is something that can help you only if you actually end up in a tax controversy. Yet believe it or not, there is something about keeping good records that can keep you out of tax trouble in the first place. Maybe it’s karma.
Moreover, this rule isn’t just for people who run businesses. For example, recreational gamblers, even retirees playing the slots, need to keep a diary or other record of how much they bet and lose on each visit. That’s because your occasional big win will be reported to the IRS by the casino. You can use gambling losses to offset your winnings. But if you don’t keep good records, you could end up a two-time loser — once at the tables and once to Uncle Sam.
Another example is charitable donations. Put a $20 check instead of a $20 bill in the collection plate. The law requires you to have paper proof of every donation you deduct. (For more, read “Give and grow rich with charitable deductions.”)
Does the IRS really care about this sort of record keeping? Yes. Most of the audits conducted on ordinary, law-abiding folks — meaning wage earners without undisclosed offshore accounts — are so-called correspondence audits. In such audits — you might be picked for one if you deduct a lot of contributions — taxpayers are told their deductions will be disallowed unless they promptly mail back records substantiating them. (Also see “Tax records you can toss.”)
I’m about to send HP Laptop to my Dad, since there’s too may corruptions going on at EMS. I’m afraid not to do so. I rather wait to go back to phils and hand carry the item with me. ISUMBONG KAY TULFO or IMBESTIGADOR, etc. in order for them to stop the corruption somehow. These maniacs are pure greedy!
I’m so sorry to hear about your bad experiences with PhilPost, made me want to write something good about the PhilPost in Daet, Camarines Norte.
I’ve been purchasing cameras off Ebay and I haven’t had a bad experience with the Post Office in Daet. I’ve had packages from Ukraine, Hongkong, China and the USA with prices varying from $10 to $100 but no fees were asked from me but the Php35 for handling I guess.
So good job to PhilPost Daet. Sana lahat ng Offices nyo e ganon.
Oh and by the way, I did buy a camera worth over $200. The seller was kind enough to mark it as a gift. No taxes were imposed. So i guess when I get back to Manila and purchase merchandises overseas, I’d just have it shipped to Daet and ask my sister to ship it to Manila. I got scared with how corrupt PhilPost Offices in Metro Manila are. :o
Good idea…..