There seems to be a lot of back and forth regarding Brian’s recent shrimp harvest about the real price Brian sold the shrimp for.
We saw the video Brian made going to the market to show the local prices that shrimp were being sold at but that video is not proof of anything.
I could sell my car for $5000 to a car lot and then go to the local car lot and show the exact car being sold for $6000

What exactly would that video prove?
It only proves the price of a vehicle for sale at the car lot.
Just using selling a car as an example, how could I prove to anyone that I sold my car for $5000?
Does anyone know?

The simple answer is, by showing the official receipt I got from the car lot dealer

So, how does a legitimate business that grows and sells shrimp in the Philippines prove to the naysayers and idiots the real weight of shrimp sold and for what price?

Does anyone know the answer?

Has anyone been listening to our previous videos about laws and regulations?

The answer again is a very simple one, by showing the official invoice or receipt they got from the agent who purchased the shrimp and sold them on

You might be saying, but Brian doesn’t need to get a receipt!

And you would be correct in making that statement, Brian doesn’t need to get a receipt but the owner of Marjhen Aquafarming does!

And, it’s a legal requirement that Marjhen Aquafarming either provides an invoice of sale from the Fish Agent or provides an official receipt from the Fish Agent

Who has the responsibility to make sure that Marjhen Aquafarming follows the law of the Philippines?

The only answer is, Maricel Smith, as she is the only name registered to that business and by law she is required to get an official receipt of sale from the Fish Agent and hold that receipt for a period of 3 years

Who has the responsibility of paying tax in that income of 15,000 pesos that Marjhen Aquafarming just received?

Again, the answer is Maricel Smith

You might be saying, you only pay tax on the profit?

But you would be wrong! That’s for registered corporations NOT the self employed!

Tax is collected on the income of the self employed business as stated by BIR

(and is the same for most western countries too)

Don’t believe what I’m telling you? Fine, we don’t expect you to just believe our word for it, let’s look at what the BIR says

Whereas, the Bureau of Internal Revenue (BIR) issued on 05 February 2014 Revenue Memorandum Circular (RMC) No. 7-2014 to clarify the issues related to the registration and tax compliance of Marginal Income Earners (MlEs) pursuant to Revenue Regulation (RR) No. 7-2012 and RR No. 11-2000. According to BIR, the issuance of the circular is part of the BIR’s campaign to plug leakages from tax evasion and to boost state coffers;

Whereas, under RMC No. 7-2014, a Marginal Income Earner (MIE) is an individual not deriving compensation as an employee under an employer-employee relationship and who is self-employed and’ deriving gross sales or receipts not exceeding One Hundred Thousand Pesos (Php 100,000.00) in any twelve-month period. Moreover, the activities of such MlEs should be principally for subsistence or livelihood.

Whereas, under RMC No. 7-2014, the BIR’ clarified that MlEs include agricultural growers/producers (farmers/fishermen) selling directly to ultimate consumers, small sari-sari stores, small carinderias or “turo-turos,” and drivers/operators of a single unit tricycle. It categorically excludes licensed professionals, consultants, artists, sales agents, brokers and others similarly situated, including all others whose income have been subjected to withholding tax;

As you have just heard me read out what the BIR says, the shrimp pond business even though generated less that 100,000 pesos in a year, it is still required to pay income tax on any sales it has made

Do not misunderstand the difference between income and profits

The BIR tell us you need to pay tax on income generated from sales

Still don’t believe what I’ve said? Ok let’s get into this further shall we?

under RMC No. 7-2014, the BIR additionally subjects MlEs to a range of registration and compliance requirements, including the registration of the MlEs with the BIR, registration of Book of Accounts, issuance of registered principal receipts/sales invoices, and the filing and payment of their Annual Income Tax Return similar to other self-employed individuals

So from what we know, we have questions that need answering

Has Marjhen Aquafarming registered with the BIR?

Has Marjhen Aquafarming have a Book Of Accounts?

Has Marjhen Aquafarming got “in hand” receipts and sales invoices from buying the shrimp, buying food, selling the produce to the Fish Agent etc…

Is Marjhen Aquafarming going to fill out their Annual Income Tax Return or have they ever filled out an Annual Income Tax Return since registering the business name with the DTI

Please note , that Marjhen Aquafarming not only covers the shrimp pond but also the Milkfish Ocean Pen and if you combine both the incomes from the milkfish sales and shrimp sales the income made in a 12 month period was higher than if you only take into consideration the 50,000 to 60,000 income of sales from the shrimp pond alone

In actual fact Marjhen Aquafarming did make significant sales during the milkfish harvest 1, 2 and 3..
I’m guessing that the sale income of the Milkfish has not been accounted for at all.
So that leaves to even more questions that Maricel Smith needs to answer and should answer and show the confirmation she would of received from the BIR that she has submitted an Annual Income Tax Return on both ventures including the shrimp pond and milkfish ocean pen.

In fact, due to the income tax in sales collected from the milkfish and the reported loss at the end of April 15th 2020, Brian and Maricel should of received a tax refund from the BIR as the business didn’t make any profit during that time and of course they would of added the costs into their accounting, like feeds, petrol, fish nets etc…

A good accountant would of made sure they were due a very nice lump sum refund from the BIR.
Maybe they did receive one and just decided not to make a video about it.
Wouldn’t that just show today’ right here, right now that Geoff Mead makes false accusations and misleads his followers that Brian and Maricel don’t follow the laws of business in the Philippines if they can show the evidence that a Income Tax Return was filed?

Brian, this is your chance right now to show your Income Tax Returns for Marjhen Aquafarming and prove to the world that you are legit and that GD Mead is nothing but a lier

But folks, it doesn’t stop there does it, that just one part.
Brian, why don’t you show the official receipt you received from the Fish Seller where that receipt shows how many kilos of shrimp you sold and at what price is was sold for?
You might say that they don’t need to have receipts? Ok, that’s fine, let’s look at what the BIR says about businesses and receipts.

SECTION 237 Of The Tax Code Philippines  Issuance of Receipts or Sales or Commercial Invoices. –
All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, issue duly registered receipts or sales or commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: Provided, however, That in the case of sales, receipts or transfers in the amount of One hundred pesos (P100.00) or more, or regardless of amount, where the sale or transfer is made by a person liable to value-added tax to another person also liable to value-added tax; or where the receipt is issued to cover payment made as rentals, commissions, compensations or fees, receipts or invoices shall be issued which shall show the name, business style, if any, and address of the purchaser, customer or client: Provided, further, That where the purchaser is a VAT-registered person, in addition to the information herein required, the invoice or receipt shall further show the Taxpayer Identification Number (TIN) of the purchaser.
 “The original of each receipt or invoice shall be issued to the purchaser, customer or client at the time the transaction is effected, who, if engaged in business or in the exercise of profession, shall keep and preserve the same in his place of business for a period of three (3) years from the close of the taxable year in which such invoice or receipt was issued, while the duplicate shall be kept and preserved by the issuer, also in his place of business, for a like period.

Now we have read you the law on businesses needing to provide receipts and invoices

We now have more questions!
Did Marjhen Aquafarming receive a receipt from the Fish Agent or provide the Fish Agent with an invoice?

Does Marjhen Aquafarming have in its accounting books a record of the recent and previous sales from the shrimp?

Does Marjhen Aquafarming have in its accounting books a record of previous milkfish sales before the milkfish ocean pen part of the business shut down?

Does Marjhen Aquafarming hold in its accounting books records of feeds purchased?

Does Marjhen Aquafarming hold in its accounting books records of salaries paid?

Does Marjhen Aquafarming hold in its accounting books records of tax collected on sales of milkfish and shrimp?

Does Marjhen Aquafarming hold receipts of income tax from the sales of milkfish and shrimp?

Does Marjhen Aquafarming have a copy of the previous years Annual Income Tax Returns?

Does Marjhen Aquafarming show in their accounting books a record of where the investment monies came from and the amounts?

Marjhen Aquafarming was registered on 29th April 2020 at 11.07am

We would presume that in the tax year ending of 15th April 2021 that business has submitted the required Annual Income Tax Return

So Brian, why don’t you now make a video and show that Geoff Mead is the lier you say he is and provide

The Annual Tax Return for Marjhen Aquafarming for the year ending 15th April 2021

The Offical Receipt from the recent sale of your shrimp

The Official Receipt or invoice from your previous shrimp sale

The Official Receipt from the BIR that the tax on income has been paid from sales of shrimp and milkfish from 29th April 2020 and 15th April 2021

If you have those documents then why not just show them today on video and prove Geoff Mead wrong and gain some credibility for yourself and make Geoff Mead a fool

Just remember folks, as a self employed registered business you can offset your expenses against the tax you have already paid or any tax due

Any accountant will tell you that and they will make sure your due the tax refund you are entitled to.
Especially as your such a good business man at book keeping I’m sure you have all the receipts and gave them to your accountant

Last question for you Brian, how much was your tax refund from the BIR after you submitted your Income Tax Return? It must of been a lot as the business didn’t make a profit, in fact you should of received a large portion of the tax you previously paid in your refund.
Did you share any of that tax refund with Jason to help him recover his enormous loss from the milkfish? Or did you keep it all to yourself?

Or maybe you just didn’t file a Income Tax Return

Note from Expats Forums

Brian, We have space for you to post those documents free of charge, We await your email with them