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Freeman Cebu Business

BIR answers Duterte’s call to cut government red tape

Carlo S. Lorenciana - The Freeman

CEBU, Philippines - The Bureau of Internal Revenue has streamlined the issuance of tax clearance certificates (TCC) and certificates authorizing registration (CAR).

BIR's Revenue Memorandum Circular 74-2016 mandates that all TCCs must be processed and released within two working days from the submission of complete documents.

The number of documentary requirements was also cut from nine to three.

This came at a time when President Rodrigo Duterte made a stern call to key government agencies like the BIR to provide a fast service to the public.

Duterte has vowed to cut red tape in the government which has long been a problem in the country.

Furthermore, BIR also issued Revenue Memorandum Order 41-2016 which mandates the strict adherence of the Anti-Red Tape Act of 2007 (ARTA) in the processing and issuance of CARs.

"The said RMO reiterates the documentary requirements relative to applications for the issuance of CARs covering sale of real property, transfer or assignment of stocks not traded in the stock exchange, transfer subject top donor's tax, estate tax, and other taxes including DST (documentary stamp tax) related to the sale/transfer of properties," BIR said.

It also orders that CARs should be issued five days from the submission of documentary requirements.

BIR said officials and employees found to have violated this directive shall be subject to criminal and administrative penalties provided under the ARTA.

The issuance is in response to the complaints raised by taxpayers of CARs issued well beyond the prescribed period.  (FREEMAN)

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