New BIR chief revokes Henares orders

MANILA, Philippines - The new commissioner of the Bureau of Internal Revenue (BIR) just gave taxpayers his welcome gifts.

True to his pronouncements, BIR commissioner Cesar Dulay suspended all tax probes, revoked two of his predecessor’s orders and restricted implementation of others issued last month on his first day yesterday.

“I just signed today three orders,” Dulay told The STAR in a phone interview. The orders will not be in effect until published.

Under Revenue Memorandum Order (RMO) 38-2016, the tax chief said he revoked two circulars issued by Kim Henares laying out tax investigation rules against property buyers and sellers.

Issued June 7 and 13, respectively, RMO 24- and 25-2016 stated that real estate purchasers and sellers may be investigated if they cannot prove financial capacity for owning their assets.

“I am recalling those orders as what I stated during our conference in Davao,” Dulay said, pertaining to the workshop with the business community last June 17.

Industry group Tax Management Association of the Philippines (TMAP), who opposed the rules, welcomed the news. “Is it Christmas today?” said president Benedict Tugonon.

Aside from this, Dulay also signed Revenue Memorandum Circular (RMC) 69-2016 that suspends all Henares’ orders from June 1 to 30, which TMAP had said was supposed to be a transition period.

“These are preventive reviews after listening to the players. Initially, only those in June will be covered, but I may consider others,” Dulay said.

Also issued was RMC 70-2016 that suspended all letters of authority (LOA) and instructing all revenue offices to provide him an inventory of these orders by July 16.

BIR gives LOA to taxpayers under investigation or audit.

“I will review them and will clear the valid ones, one by one,” Dulay said.

Sought for comment, Tugonon said he is “very happy” with Dulay’s “quick action” on their concerns. TMAP and Dulay met on the sidelines of the conference in Davao City.

In particular, TMAP had blasted Henares for issuing rules weeks before she stepped down last Thursday. The former BIR chief justified this, saying she was merely doing her job. “This is what we have been asking and advocating for. These rules and regulations are not consistent with the law which could tax compliance very difficult,” Tugonon said in a phone interview.