THE Bureau of Internal Revenue (BIR) has suspended audits due to the lockdown and plans to resume 60 days after the six-month state of emergency is lifted.
BIR Commissioner Caesar R. Dulay issued Revenue Memorandum Circular No. 34-2020 dated March 27, which also suspended the run time for the statute of limitations on assessing and collecting of taxes.
“The suspension of the running of the Statute of Limitations shall likewise apply with respect to the issuance and service of assessment notices, warrants and enforcement and/or collection of deficiency taxes,” according to the circular, published Tuesday.
“Under the law, the BIR has certain period only to issue a tax assessment, which is three years from date of filing of the return, and only has five years to initiate collection proceedings like filing a case in court,” Tax Management Association of the Philippines, Inc. (TMAP) President Romeo H. Duran said.
President Rodrigo R. Duterte earlier placed the entire country under a state of calamity and national emergency due to the coronavirus disease 2019 (COVID-19) outbreak.
Mr. Duran said the circular gives the BIR more time to audit taxpayers during the public health emergency.
Luzon has been placed under enhanced community quarantine until April 12 to contain the spread of the virus. — Beatrice M. Laforga
