BIR: Negligent tax withholding agents may avail of amnesty if they return all unremitted tax collection

Published May 26, 2020, 12:00 AM

by manilabulletin_admin

By Jun Ramirez

The Bureau of Internal Revenue (BIR) said negligent tax withholding agents may avail of the tax amnesty on delinquencies provided they return all unremitted taxes they collected.

Metro Manila revenue regional directors said they are not, however, entitled to discounted rates granted to other delinquent taxpayers who will apply for the privilege.

“Withholding agents who withheld taxes but failed to remit the same must pay 100 percent of the basic tax assessed,” one regional director stated.

“His only prize is avoiding criminal prosecution for malversation for holding on to tax payments that already belonged to the government,” he added.

The tax amnesty law (RA-11213) eliminates payment of surcharge, interest, and compromise penalties.

The rates start at 40 percent of the basic tax for cases which have become final and executory, and 50 percent to cases subject to final judgement of the courts.

The higher rate of 60 percent of the basic tax applies to criminal cases of tax evasion pending before the Department of Justice, fiscal’s office, or the courts.

The amnesty covers indebtedness incurred in 2017 and prior years and ends on June 22 with no re-extension.