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Revenue bureau releases draft tax amnesty rules

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THE Bureau of Internal Revenue (BIR) has published draft rules on availing of the tax amnesty for delinquencies in specific cases, which will give eligible taxpayers one year to settle all outstanding payments and avoid tax evasion cases.

The state’s biggest tax collection agency posted a draft revenue regulation (RR) on its Web site this week.

This is treated as one set of implementing rules for Republic Act No. 11213, or the Tax Amnesty Act signed by President Rodrigo R. Duterte last month.

With the measure, the government hopes to raise P21.26 billion as Filipinos avail of the amnesty, which would allow them to pay back taxes without being charged in court and without compounding penalties for delayed settlement.

This will account for bulk of the P27.541-billion revenue to be drawn from the “truncated” tax amnesty law, together with the provision for estate tax amnesty.

“All persons, whether natural or juridical, with internal revenue tax liabilities covering taxable year 2017 and prior years, may avail of Tax Amnesty on Delinquencies within one year from the effectivity of these regulations,” the draft regulation read.




The RR defines a delinquent account as involving unpaid taxes of taxpayers who have been given final assessment notices or formal letters of demand from the BIR, as well as those who have applied for compromise settlement with the bureau but have failed to settle due to doubts on the assessment or their “financial incapacity.”

The amnesty will also cover those with pending tax evasion charges before the Department of Justice, prosecutor’s office or the courts.

The new law sets varying amnesty rates for delinquencies charged on the basic tax.

Unremitted withholding taxes will still have to be settled in full.

For delinquent accounts and assessments which have been deemed final and executory, taxpayers will need to pay the equivalent of 40% of the basic tax assessed. Those with tax cases that have been deemed final and executory by courts will have to settle 50% of the basic assessment, while those with pending criminal cases can choose to settle beforehand and pay 60% of the tax assessment.

Anyone looking to avail of the amnesty will have to file an application with BIR offices by submitting a tax amnesty return, an acceptance payment form and a certificate of tax delinquency issued by the bureau.

Non-large taxpayers must file their forms before their respective revenue district offices, while large taxpayers will have to submit these to the Large Taxpayers Division Office where they are registered.

Upon receipt of such forms, the BIR has 15 calendar days to issue an authority to cancel assessment, which will then mean that the tax amnesty application has been accepted.

“The tax delinquency of those who availed of the tax amnesty under these regulations, upon full compliance with all the conditions set forth hereof, shall be considered settled, and the criminal case in connection therewith and its corresponding civil or administrative case, if applicable, is terminated,” the proposed RR reads.

The Finance department has said that the implementing rules will be published between March and April, in keeping with the 90-day requirement set by law. — Melissa Luz T. Lopez

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