BIR clarifies coverage of tax amnesty on delinquencies

Published June 13, 2019, 9:39 PM

by Ellalyn De Vera & Richa Noriega

By Jun Ramirez

The Bureau of Internal Revenue (BIR) said Thursday that tax liabilities which have become final and executory before April 24, 2019, are covered by tax amnesty on delinquencies (TAD).

Bureau of Internal Revenue (MANILA BULLETIN)
Bureau of Internal Revenue (MANILA BULLETIN)

Specifically, the tax debts refer to a compromise settlement application that was denied either by the national evaluation board, or the regional evaluation board.

The BIR tax information and education division came out with the explanation to clarify certain ambiguous provisions of Revenue Regulations No. 4-2019 which implemented the amnesty law (RA 11213).

It also said that taxpayers can avail of the amnesty if the assessment notices pertain to penalties only, without the basic tax assessment.

“A taxpayer can avail of the tax amnesty if the penalties cover taxable 2021 2017 and prior years and the assessment notices have become final and executory on or before April 24, 2019,” it said.

The TAD can be availed if the assessments have become final and executory at the BIR and judicial levels.

It also included criminal cases (tax evasion) pending before the DOJ, prosecutor’s office or the court as well as withholding agents who did not remit the collections.

The amnesty payments range from 40 percent of the basic tax of the assessment which has attained finality, 50 percent of the basic tax for cases awaiting judgment by the courts and 60 percent for criminal cases pending before the DOJ, prosecutor’s office and the courts.

Withholding agents who failed to remit the collections are required to pay 100 percent of the basic tax assessed.

The amnesty law waives all interest and penalties and covers delinquent accounts incurred in 2017 and prior years.

 
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