Posted on 11:14 PM, September 15, 2010 [ BusinessWorld Online ]
Delinquent taxpayers get chance to settle obligations
A PROGRAM that allows delinquent taxpayers to correct their records has started even as the Bureau of Internal Revenue (BIR) continues its drive against tax cheats.
Revenue Regulations 9-2010 setting out abatement guidelines are now in effect after having been published in two newspapers yesterday.
The scheme, which will run until October 29, essentially allows taxpayers who failed to file returns or who did not pay the correct taxes to rectify their mistakes without paying the 25% surcharge and P25,000 compromise penalty.
The BIR, in justifying the program, said many taxpayers had volunteered to correct their records as it continued to go after tax cheats under the Run After Tax Evaders (RATE) program.
"In line with RATE, the BIR has adopted the policy to deter ... tax evasion practices and to encourage voluntary compliance with internal revenue tax laws," it said in RR 9-2010.
"Recently, various taxpayers have expressed their willingness to voluntarily file and pay taxes and/or rectify the returns they have previously filed and pay and all deficiency taxes and increments thereto, but at the same time, they requested for the abatement of corresponding surcharges and/or compromise penalty."
BIR Commissioner Kim S. Jacinto-Henares said the bureau does not have an estimate of the additional taxes it would collect.
"This is not an income-generating program," she said. "This was made because of the clamor from taxpayers who wanted to pay the right dues, but do not want ... surcharges and penalties."
Those who avail of the program must pay the basic tax plus 20% interest. Several conditions for joining the program were also set out by the BIR.
Those who failed to file tax returns and are making an original filing must not have been assessed for deficiency taxes nor face tax evasion charges, either before the Justice department or the courts.
The same conditions apply to those who are amending their tax returns by paying the correct taxes. Any amendment, the BIR made clear, should result in more taxes being paid.
"The amendment made on the return [must involve] an upward adjustment of the amount pertaining to the gross sales/revenues/receipt and/or a downward adjustment of deductions from the gross revenue/receipts or reduction in tax credits; or upward adjustment of both gross sales/revenues/receipts and deductions; provided that in all cases, the amendment or adjustment will result in additional tax payments," it said.
The BIR also emphasized it would go through the returns after the abatement program ends to see if the correct taxes were indeed paid. It warned that tax evasion charges would be filed if understatements were discovered.
The last BIR abatement program was in October 2006 under then Commissioner Jose Mario C. Buñag. It ran until March 2007 and waived all penalties, including surcharge and interest on delinquent accounts and on assessments -- preliminary and final, disputed or not -- as long as taxpayers paid 100% of the basic tax assessed.
The BIR is tasked to collect P860.4 billion this year. As of end-August, its collections amounted to P546.4 billion, below a P599.28-billion goal. -- from a report by P. P. Magtulis
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