THE House of Representatives has endorsed for Senate approval the proposed Ease of Paying Taxes (EOPT) Act.
This after lawmakers approved on third-and-final hearing House Bill (HB) 4125, which seeks to modernize tax administration and improve tax compliance.
For purposes of responsive tax administration, the bill said the Secretary of Finance, upon recommendation of the commissioner, shall establish reasonable criteria for classifying taxpayers, taking into consideration their capacity to comply with tax rules and regulations, the amount and type of tax paid, the gross sales and/or receipts of the taxpayer, as well as inflation, volume of business, wage and employment levels, and similar economic and financial factors.
The bill also institutionalizes simplified tax returns and processes for smaller taxpayers for ease of compliance to tax rules and regulations.
The measure also introduces a medium taxpayer classification and a corresponding Bureau of Internal Revenue (BIR) special unit for better service and tax administration.
HB 4125 enhances the portability of tax transactions by removing restriction of venue in the filing of returns and payment of taxes.
It also removes the distinction between sales invoice and official receipts and makes the former the document to be used by taxpayers to substantiate value-added tax (VAT) transactions whether for sale of goods or services.
The bill mandates the Commissioner of Internal Revenue to ensure the creation of registration facilities for non-resident taxpayers.
The bill also removes the required annual taxpayer registration fee payment worth P500.
It also legislates a Taxpayer’s Bill of Rights and designates a Taxpayers’ Advocate Office.
The bill said any person or public official who is found to have violated the taxpayer bill of rights shall be punished with imprisonment of not less than two years but not more than five years and a fine of not less than P50,000 but not more than P100,000.