MANILA, Philippines - The Bureau of Internal Revenue is reminding government offices and government-owned and controlled corporations (GOCCs) that they are not above the law and must, therefore, pay taxes on time and pay the correct amount.
In a Revenue Memorandum Order no. 16-2013, BIR commissioner Kim Henares said all government offices, including its agencies, political subdivisions or GOCCS are required to file and pay and/or charged to deduct and withhold any internal revenue tax and to remit the same in accordance with the provisions of the National Internal Revenue Code.
Henares said most government offices or GOCCs often pay their internal revenue taxes late and refuse to pay the surcharges, interest and penalties for the late filing or payment.
“The same observation also on payment of deficiency taxes assessments wherein these offices often pay only the basic tax due without paying its legal increments,†she added.
Henares said government offices and GOCCs should serve as role models to the taxpaying public in matters of tax compliance.
She has instructed all Revenue District Offices, Large Taxpayers District Offices, LTS Audit Division Offices to immediately inform the government offices and GOCCs under their respective jurisdictions to strictly comply with all provisions of the NIRC as amended and its implementing rules and regulations
Henares also advised BIR staff to inform the government offices and GOCCs that no special treatment would be accorded them in any manner including the application and approval of abatement and compromise of taxes, surcharges, interest and other penalties pursuant to the provisions of the NIRC.
Failure to comply with tax regulations would result in the criminal prosecution of all heads, executive directors and officers of government agencies or GOCCS.
The BIR aims to further increase tax revenue collections by broadening the revenue base and further improving tax enforcement.
The move is in line with the government’s goal to limit the budget deficit to no more than two percent of the country’s gross domestic product from 2013 to 2016.