THE FINANCE department has given delinquent taxpayers another month to avail of a one-time amnesty, resetting the deadline to May 5 and agreeing with a position that the original date was not in keeping with established procedures.
In Department Order 11-08, Finance Secretary Margarito B. Teves said the Administrative Code of 1987 provides that three copies of administrative rules and regulations be filed with the Office of the National Administrative Register (ONAR), with effectivity to follow 15 days after.
Department of Finance (DoF) Order 29-07 released on August 15, 2007, which contained the rules governing the Tax Amnesty Act of 2007, was filed at the ONAR only on October 23 of the same year. This means it took effect on November 7, 2007 and that the six-month amnesty should end in May, not March as announced.
"In view of all the foregoing, it is hereby clarified that the effectivity of DoF Department Order No. 29-07 commenced on November 7, 2007 and the last day for availing the benefits of the amnesty shall be six months from November 7 or on May 5, 2008. This order shall take effect immediately," Mr. Teves said in a March 18 order that was signed yesterday.
Taxpayers who wish to apply for amnesty for tax deficiencies incurred until December 31, 2005 can go to accredited agent banks of the Bureau of Internal Revenue (BIR). Requirements include a statement of assets and liabilities and an amnesty fee equivalent to 5% of his or her total net worth as of December 31, 2005.
The Tax Amnesty Law covers deficiencies in income, excise, documentary stamp, value-added, estate, and other percentage taxes.
Quezon Rep. Danilo E. Suarez (3rd district), who authored the bill which eventually became the Tax Amnesty Law of 2007, welcomed the clarification from the Finance department.
"With this order, lahat ng mga gusto pang humabol sa amnesty, makakahabol pa (those who want to catch up with the amnesty can do so). I will come up with an information sheet based on the BIR’s last revenue memorandum circular to let the public know more about this," Mr. Suarez said.
Professional tax consultants, however, continued to raise concerns over the BIR’s interpretation of the Tax Amnesty Law. For instance, they questioned the expansion of the basis for disqualification as well as the planned publication of taxpayer names, net worth and incomes by May 31.
"The BIR is aware of our position with respect to the questionable provisions of their circulars. Maybe it is something we can still bring up, but that would just be a reiteration," said Ma. Victoria Layug-Yuson, president of the Tax Management Association of the Philippines.
The BIR collected P4.2 billion worth of amnesty fees from September 5 to March 6. BIR Commissioner Lilian B. Hefti has said she was "hopeful" of adding P1 billion to the amnesty take if the deadline would be moved.
The BIR is the main revenue generator of the government. It is tasked to collect P845 billion this year, which would finance the bulk of the government’s P1.226-trillion budget.
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