Vol. XXI, No. 163 [ Business World Online ]
Wednesday, March 19, 2008 | MANILA, PHILIPPINES
THE TAX BUREAU has left it to Malacañang to decide on an appeal to extend a tax amnesty even as it said proceeds from the just-concluded program had exceeded the target.
While the Bureau of Internal Revenue (BIR) can issue a position on the effectivity of the Tax Amnesty Law of 2007, deputy commissioner Nelson M. Aspe said the final decision would come from President Gloria Macapagal Arroyo.
Confusion over the correct deadline arose when tax consulting firm Isla Lipana & Co. questioned the BIR’s March 6, 2008 cutoff date.
In a February 26 letter to the tax bureau, Isla Lipana said that while the law’s implementing rules and regulations had been published in newspapers on August 21, 2007, these were only submitted to the Office of the National Administrative Register on October 23 of the same year. It said the effectivity of the law should thus be from November 7, or 15 days after filing of all requirements, with a May 5, 2008 deadline.
"No one in the bureau said we are wrong," Isla Lipana partner Alexander Cabrera said.
BIR assistant commissioner James Roldan, tasked by tax commissioner Lilian B. Hefti to review the tax amnesty law, said he found merit in Isla Lipana’s position.
"There is legal basis but I do not want to say there has been a decision," Mr. Roldan said.
"The decision will be forthcoming," he added.
Quezon Rep. Danilo E. Suarez (3rd district), author of the tax amnesty measure which eventually became Republic Act (RA) 9480, said had written to Mrs. Arroyo and the Finance department two weeks ago "to seek guidance" on the validity of the tax firm’s position.
"Mr. Suarez addressed his letter to the President. We are just waiting for a directive from Malacañang. They might decide during the long break," Mr. Aspe confirmed.
"We can have our opinion or position but the IRR was issued by the DoF (Department of Finance), which is a much higher office than the BIR."
If the deadline is reset, the BIR is hopeful to book more revenues to augment its tax collections this year.
"We surpassed the P4-billion mark. About P2 billion came in on the last week of filing. Kung ma-extend, baka makasingil pa ng konti (We might get to collect some more if it is extended)," Mr. Aspe said.
The Tax Amnesty Law provides a one-time offer allowing taxpayers to erase deficiencies in income, excise, value-added, documentary stamp, estate, and other percentage taxes up to December 31, 2005.
To avail of the amnesty, a taxpayer must submit a statement of assets, liabilities and net worth and pay an fee equivalent to 5% of his total net worth as of December 31, 2005.
According to the law, some P400 million of the P4-billion collection target will be used to develop the Finance department’s Management Information System program, which will allow access to information from the Land Registration Authority, Trade department, Securities and Exchange Commission, Land Transportation Office and other agencies.
The data will be used for taxpayer "lifestyle checks". — ABLL
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