MANILA, Philippines - The Tax Management Association of the Philippines (TMAP) has asked the Bureau of Internal Revenue (BIR) to defer the implementation of a new policy that requires certain taxpayers to file their income tax returns electronically.
TMAP, which represents the country’s accountants, lawyers and other professionals dealing with tax-related issues, said taxpayers need ample time to fully comply with the new requirement, which was issued less than a month before the April 15 deadline.
TMAP president Terence Conrad Bello noted that some taxpayers have encountered delays or technical issues enrolling into the e-BIR form facility.
“These issues will have to be addressed by the BIR first before the new requirement can be efficiently implemented,” Bello said.
He said that while automated tax return filing minimizes human error and provides the BIR with an efficient audit tool to enhance compliance, TMAP is concerned that taxpayers covered by the new policy would not have enough time to adjust to the bureau’s electronic system and processes.
Delinquent taxpayers will be fined P1,000 per return plus 25 percent surcharge of the tax due to be paid.
The BIR said non-compliant taxpayers would be included in the Revenue District Offices’ priority audit program.
Among the taxpayers required to file income tax returns electronically are accredited importers and brokers; national government agencies; licensed local contractors; recipients of fiscal incentives; top 5,000 individual taxpayers, corporations with a paid up capital of P10 million and above; procuring government agencies; bidders in government projects; large taxpayers and the top 20,000 private corporations.
Also mandated to use the e-BIR forms in submitting tax returns are accredited tax practitioners and their clients, accredited printers of receipts, one-time transaction taxpayers, state-owned firms, local government units and cooperatives registered with the National Electrification Administration and Local Water Utilities Administration
The BIR implemented the use of the electronic tax payment facility to make it convenient for taxpayers to file their returns.
It said only a few are using the bureau’s electronic filing and payment system.
Only three percent of taxpayers filed income tax returns online last year, the BIR said.
Finance Secretary Cesar Purisima said the government aims to dramatically increase the number of taxpayers filing returns electronically and encourage more people to pay taxes.
Upon successful validation of the accomplished tax return, taxpayers will receive a system-generated notification e-mail, which acknowledges that the tax return has been successfully filed.