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By Chino S. Leyco, Reporter
DUE to a technical glitch, the
Department of Finance has decided
to extend the Bureau of Internal Revenue’s (BIR) tax amnesty
program until next month, thus allowing the agency to meet its
collection target under the law.
In an order, Finance Secretary
Margarito Teves said the last day for availing of the benefits under
the Tax Amnesty Act of 2007 or Republic Act 9480 would be on May 5
this year, and not the original deadline of March 6.
Teves said the finance department
issued the clarification about the deadline after “the bureau
learned that the copy of Department Order No. 29-07, dated August
15, 2007, implementing RA 9480, was filed with the UP Law Center,
Office of the National Administrative Register only [on] October 23,
2007.”
Due to the delayed transmission
of the program’s implementing rules and regulations, the tax
amnesty program became effective on November 7 last year, and not
September 6 as planned.
Under the rules, an amnesty tax
shall be paid “within six months from the effectivity of the
[implementing rules].”
“In view of all of the
foregoing, it is hereby clarified that the effectivity of Department
Order No. 29-07 commenced on November 7, 2007 and the last day for
availing of the benefits of the amnesty shall be six months from
November 7, 2007,” Teves’ directive read.
The finance secretary said
revenues from the program reached P4.2 billion, or higher than the
P2 billion reported earlier.
Under the new period, the BIR met
its revenue goal for the program of P3.5 billion.
BIR Deputy Commissioner Nelson
Aspe said delinquent taxpayers who failed to avail of the program
will be prosecuted.
This latest in a string of
amnesties the government has pursued was designed to enhance revenue
administration and collection by granting amnesty on all unpaid
internal revenue taxes imposed by the government for taxable year
2005 and prior years, under certain conditions.
Last year, the bureau’s total
collection was 7 percent short of its P765 billion full-year goal.
The P712.098 billion generated however was 9 percent higher than the
P652.732 billion raised in 2006.
After failing to hit targets in
the first six months last year, the bureau registered higher
collections in the July to December period at P377.387 billion.
This year, the BIR is asking the
finance department to adjust its collection goal to below P800
billion, or close to the P765 target for last year.
The BIR contributes around 70
percent of the government’s tax revenues.
The extension of the amnesty
program comes as the House of Representatives recommended clipping
the finance secretary’s power to review BIR tax rulings.
In a committee report, Rep.
Exequiel Javier, Ways and Means Committee chairman said the review
power of the finance department only leads to conflicting and
ambiguous interpretations of the National Internal Revenue Code and
related tax laws.
“The power of review prolongs
the process through which the aggrieved taxpayers may obtain speedy
relief from adverse ruling of the [BIR] commissioner,” Javier
said.
The power of review vested in the
finance secretary overruling the BIR interpretation of the
provisions of the Code and other tax laws was inserted in the
statutes in 1998, when RA 8424 was enacted into law.
“Prior tax revenue statutes did
not provide for such power of review,” Javier said.
Last year, the BIR and finance
department clashed after their contradicting rulings on Pall
Mall’s brand classification. Finance department sources said this
conflict had prevented Teves’ confirmation at the bicameral
Commission on Appointments.
Former finance undersecretary
Gaudencio Mendoza Jr. had declassified Pall Mall cigarettes from
premium to a mid-priced brand subject to a P6.74 tax rate, or lower
than the initial classification of the BIR of P26.06.
On February 11 this year, the
finance department however bowed to the BIR’s decision and
overturned Mendoza’s order.
In the same committee report,
Javier said the BIR should assess Pall Mall’s local manufacturer
La Suerte Cigar and Cigarette Factory for deficiency excise tax on
its withdrawals of Pall Mall brands after December 2004.
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