THE Bureau of Internal Revenue (BIR) will start accepting tax amnesty applications on April 24 under the legislated program that gives taxpayers a year for its availment and providing them a clean slate once accomplished.
BIR Spokesman Marissa O. Cabreros told reporters the forms are ready and downloadable through the BIR web site for taxpayers. The first step for those who wish to apply for amnesty on their delinquencies would be securing a delinquency verification form.
“Everything is ready, it’s
downloadable in the system, everything is attached as well in the RR [revenue
regulation], so we are ready on April 24 to accept applications. However, the
first step actually for those who want to avail, to get their delinquency
verification forms, so even if it is not yet the 24th they can start
getting their delinquency verification form from the district they are
registered because that document will show how much their delinquency is, and
that will be the basis to apply the tax amnesty rate,” Cabreros explained.
The tax amnesty on delinquencies will only be offered until April 23, 2020, or one year from the effectivity of the RR.
Cabreros said the projected tax collection from the tax amnesty is still being computed, but the agency hopes many taxpayers would avail themselves of the amnesty.
“We are hoping that a lot of our delinquent taxpayers will avail because it would give them a clean slate, and at the same time our floating receivables, so to speak, will be converted to collection, so it’s a clean slate [also] on our part,” she added.
DOF Undersecretary Mark Dennis Y.C. Joven earlier pointed out that an estimated P80 billion worth of tax delinquencies is pending in the books of the BIR.
Earlier in the month, the BIR issued RR 04-2019 in line with the implementing rules and regulations (IRR) for Republic Act 11213 or the Tax Amnesty Act of 2019, specifically on the provision on the processing of tax amnesty applications on tax delinquencies.
The RR states that all persons with internal revenue tax liabilities, whether natural or juridical, covering taxable year 2017 and prior years, may avail themselves of the tax amnesty on delinquencies within one year from the effectivity of the RR. Cabreros added that the RR on estate tax amnesty is being eyed for publication and implementation in May 2019.
“Most probably, yes [May]. Just like what we said, if we can finish it earlier, we won’t max out [the deadline of] June 3. Tax on delinquency was first because that’s easier and straightforward; tax amnesty on estate is more complicated in the sense that there are many implications, it involves several transfers of property, so it’s more on completeness of the reporting and proper valuation,” she said.
The original proposal on amnesties under Package 1B of the Comprehensive Tax Reform Program of the Department of Finance (DOF) includes these measures: an estate tax amnesty estimated to generate P6.28 billion; general tax amnesty with P13.63 billion, tax amnesty on delinquencies with P27.16 billion; lifting of the bank secrecy law for criminal cases as well as the automatic exchange of information, with P16.6 billion.