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Bizmen urged to avail of tax amnesty

The Bureau of Internal Revenue (BIR) has reiterated its request to business operators to avail of the tax amnesty on delinquencies (TAD) which grants substantial discount as well as immunity from criminal prosecution for tax evasion.

(MANILA BULLETIN)

Revenue regional directors and district officers in Metro Manila made the advice apparently to answer criticisms hurled by many business establishment owners about the resumption of investigation to collect deficiency taxes.

Business executives said the BIR should have waited for the pandemic to subside before resuming the issuance of Letter of Authority (LA) to investigate.

Auditing financial records now, they said, is untimely as the health crisis continues to batter business operations.

Revenue field officials, however, said businessmen should not fear the audit if they are declaring correct earnings and paying the corresponding taxes.

Otherwise, they suggested that taxpayers with tax debts should apply for TAD, the deadline of which is Dec. 31,2020.

The tax amnesty rates ranges from 40 to 60 percent of the basic tax assessed, without interest and surcharges, covering 2017 and prior years’ returns.

The lowest rate of 40 percent applies to final tax assessment which have become demandable.

The 50 percent discount covers tax cases under court litigation awaiting judgement.

Sixty percent discount applies to.tax evasion cases pending before the Department of Justice, or the courts.

The BIR said negligent tax withholding agents can avoid criminal prosecution if they return 100 percent of the unremitted payments which already belong to the government.


Source: Manila Bulletin (https://mb.com.ph/2020/08/24/bizmen-urged-to-avail-of-tax-amnesty/?utm_source=rss&utm_medium=rss&utm_campaign=bizmen-urged-to-avail-of-tax-amnesty)

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