Vol. XXI, No. 158 [ Business World Online ]
Wednesday, March 12, 2008 | MANILA, PHILIPPINES
Tax chief says matter under review, ruling out this week
THE BUREAU OF INTERNAL REVENUE (BIR) may have to reopen its tax amnesty doors as it may have miscalculated the proper deadline for the reprieve.
BIR Commissioner Lilian B. Hefti yesterday said the law and its implementing rules and regulations (IRR) are currently being studied to determine the right cutoff date for tax amnesty applications.
"We are studying the possibility of moving the deadline. It is now with our legal department," Ms. Hefti said in an interview.
The BIR stopped accepting amnesty applications on March 6.
Tax consultancy firm Isla Lipana & Co. has sought a clarification, saying that based on Section 2 of Republic Act 9480 or the Tax Amnesty Law, the application for amnesty should be made six months from the effectivity of the law’s IRR, which is in turn based on the date of filing at the Office of the National Administrative Register (ONAR).
"Considering the foregoing provisions of law, as upheld by the Supreme Court, the Finance Department Order No. 29-07 implementing the Tax Amnesty Program only became effective on November 7, 2007, 15 days from October 23 when three copies of the said regulation were filed with ONAR," Isla Lipana said.
Ms. Hefti said the BIR decision on whether or not it will resume the collection of amnesty payments will be out within the week.
The partial amnesty collection stood at P1.6 billion as of February 26, well below target.
"We do not have the final figures yet because there were a lot of last-minute filings. Taxpayers rushed in last week," Mr. Hefti said.
The government launched the tax amnesty program in September 2007, covering unpaid tax dues up to December 31, 2005. According to Isla Lipana, the deadline should be May 5.
The government planned to raise P3.5-4 billion from the program, where applicants would have to pay a fee is equivalent to 5% of their net worth as of December 31, 2005. — ABLL
