End Date of REIBS.COM

*The Bureau of Internal Revenue (BIR) has recently implemented a new rule nationwide which requires all unused Official Receipts to be returned to BIR, so that everyone will apply for Authority to Print (ATP) new Official Receipts — the deadline is 30June 2013. The Business Name REIBS.COM Real Estate Information and Broker Services went to BIR to comply to the rule. During the evaluation process, the REIBS.COM voluntarily terminated its Bureau of Internal Revenue (BIR) registration as of 6/26/2013 without prejudice, hence the old Official Receipts cannot be used anymore. I will just be using acknowledgement receipts for the meantime if ever customers would insists to pay for my services even as I offer it for free. My Real Estate Broker Registration in Professional Regulations Commission (PRC) is still active, which means the transition will not jeopardize the services to customers.

As a Real Estate Broker, the specialization I intended to do is peer-to-peer coaching and direct client coaching. Coaching means, “I will walk you through the process on how this particular service is done”. REIBS.COM is a coaching operation. For this coaching specialization to start operating smoothly, this requires a full and smooth implementation of government rules in real estate service. This specialization can never collect a service fee if my client or customer will come back to me and say, “I thought this is how it’s done according to government rules, I want my money back because the actual government process is different from its written rules”.

The business name “REIBS.COM REAL ESTATE INFORMATION AND BROKER SERVICES” was duly registered by its owner (Rltr. John R. Petalcorin, a licensed Real Estate Broker) since 2009 in the Department of Trade and Industry, Bureau of Internal Revenue, and City Hall of Manila. The Republic Act 9646, otherwise known as Real Estate Service Act of the Philippines was legislated in 2009, upon which the foundation of this business operation was built, is still not being implemented fully by the government to date. Example, PRC still refuses to issue law enforcement memorandum circular against unlicensed real estate practitioners, there is still no memorandum circular of the mandatory establishment of principal place of business, and still have not addressed our concerns on many oppressive new rules that prevent us from practicing the profession.

We, licensed real estate brokers have business ethics to follow, and the continuous proliferation of unlicensed real estate agents in the Philippines has stolen the proprietary rights of the licensed ones; and this is the reason why REIBS.COM since 2009 has never taken off from the runway to pursue its flight path. The proprietor’s patience and long wait for government to implement the RA 9646 has finally reached its ceiling after four years. Time has come that we have to just sigh and say, “enough is enough”. The REIBS.COM has filed BIR Form 1905 to terminate the BIR registration and the process has been completed with end date 6/26/2013 — all tax-related open cases already paid and cleared.

During the evaluation of form 1905-related documents in BIR, the Officer of the Day pointed out some errors in the registration of REIBS.COM as a result (perhaps) to lapses in BIR processing. He wondered why this was VAT-registered because I (the registrant) did not indicate that it should be VAT-registered; and this has no precedent gross income of more than P1.9 million. The BIR suggested that the business entity (REIBS.COM) can be closed without prejudice because there is no need for us, professionally licensed Real Estate Brokers, to register a business entity (sole proprietor, partnership, corporation) in order to print the recently implemented BIR New Official Receipts format. We can register in BIR and print Official Receipts as professionals by merely presenting PRC Registration and Professional Tax Receipt (PTR).

Strange, though, that current BIR process is still not harmonized with Real Estate Service Act because the unlicensed real estate service practitioners (especially sales agents) can still smoothly register in BIR and pay regular taxes. To shorten the discussion, the BIR has immediately approved the electronic ending date the registration of REIBS.COM as a business entity (effective 26 June 2013). The rest of the licensed Brokers may follow the business-entity closure footsteps -- and when you register, please review the BIR registration form properly especially on whether you are VAT-registered or not -- you should know by looking back at your income batting average in the past. The BIR Officer of the Day said that we, professionally licensed Real Estate Brokers, must first have all open cases cleared in BIR (which we already did as part of the business entity registration closure process) so that we can apply for Authority to Print Receipts (ATP). So, all of us, including myself, is in a transition now. I still have to process the business name retirement in the City Hall, go back to BIR to request for ATP, and there is a lot more transactions do in PRC, BIR, City Hall, HLURB.

While we are still in the birth pains of the real estate service in the Philippines, we are flying through rough air pockets. Despite all these transition while in compliance to the government’s never-ending-NEW business process, rest assured, we will try our best to find ways to continue servicing our clients and customers. Yours truly, your Real Estate Service Coach (RESC), as always, is willing to serve for FREE. We, professionals, have social responsibility to serve, and there is no amount of governance birth pains that can hold us from our passion to serve.

If there is anything else important that I forgot to include in this article, or if you experienced a real estate transaction that is anomalous, scam, fraudulent scheme that you want me to document and expose for others to be warned, or if you want to donate to the war chest of real estate consumer rights advocacy, please feel free to email me at JohnPetalcorin@Gmail.Com. If you want to comment about this article, there is a provision for this purpose that you can find below.
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