MANILA, Philippines — Senate President Vicente Sotto III asked the Department of Finance to extend the April 15 deadline on paying income tax amid growing clamor from businesses for more time after the coronavirus outbreak disrupted their operations.
According to a report by The STAR, Sotto said he had a phone call with Finance Secretary Carlos Dominguez III who vowed to act on his request “ASAP".
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This, as companies grapple to operate after President Rodrigo Duterte locked down the entire Luzon and suspended public transportation in the island to contain the virus, which has infected 187 in the country as of reporting, 14 of them died.
Officials of the Bureau of Internal Revenue (BIR), an agency of the DOF, last week said they “don’t see the need” to push back the deadline to file income tax despite health authorities’ advice to the public to observe social distancing to prevent the new coronavirus from further spreading.
They also reminded taxpayers that a surcharge of 25% and 12% annual interest will be slapped on top of their dues should they file beyond the deadline, as prescribed by law.
Instead, the BIR encouraged taxpayers to pay their duties electronically and said all revenue offices — except those that might be ordered to cease operations due to the lockdown — will remain open and will maintain a skeletal workforce during the month-long community quarantine to collect taxes.
The bureau also said it will waive penalties for income tax return amendments provided that settlement payments are made on or before June 15 amid the lockdown.
“To help our skeletal workforce, who are putting their health at risk just for the Bureau to continuously function, and manage big tasks at hand during this Income Tax filing season, we urge all taxpayers to comply with tax obligations using the internet,” the BIR said in an advisory.
The BIR, which collects around 80% of tax revenues yearly, relies heavily on a typical surge in collections during April as taxpayers troop to their offices to settle their income tax duties.
Finance Secretary Carlos Dominguez III said the government is set to lose P91 billion this year as the spread of the virus spooks consumers from economic activities like travel, which generates revenues for the government. — with a report from The STAR/Paolo Romero