By CHINO S. LEYCO The government is not running after online sellers' past sales and unpaid taxes, the Department of Finance (DOF) clarified, noting the order is just a reminder to businesses in the digital platform to register with the Bureau of Internal Revenue (BIR). Amid rapid advances in information technology, Finance Undersecretary Antonette C. Tionko raised the need for the BIR to begin the initial phases for the government’s tighter tax collection program aimed at digital transactions. Last June 1, the BIR issued Revenue Memorandum Circular (RMC) No. 60-2020, reminding all persons doing business and earning income through digital means to ensure that their businesses are registered, or their registrations are updated. However, the RMC drew backlash from the public, saying the circular would just burden and not help small entrepreneurs who are trying to cope with an economy crippled by the pandemic. But Tionko clarified that RMC No. 60-2020 is not intended to go after online merchants who have unreported sales or unpaid taxes. She explained the latest RMC only contains basic registration guidelines for online business owners. “We just want to encourage those who are engaged in online businesses to register with the BIR,” said Tionko, who also heads the DOF Revenue Operations Group. This is not the first time the BIR initiated a campaign on digital transactions. In 2013, the tax agency had issued RMC No. 55-2013 reminding taxpayers that online businesses are not treated differently from brick-and-mortar businesses. Seven-years after RMC No. 55-2013 issuance, Tionko said the government noticed the rapidly evolving ways of conducting business in the digital space, particularly during the community quarantine. “Online transactions have increased for quite some time now, especially during the community quarantine period. That’s why we want to take this opportunity to remind them to register their businesses,” the DOF official said. Tionko also assured that no penalty for late registration shall be imposed on those who will register or update their registration status on or before July 31 this year. But she added that the BIR still encourages online businesses to declare and pay the corresponding taxes on past taxable transactions, without penalty, on or before July 31, 2020. “The BIR will issue an Operations Memorandum to this effect,” Tionko said. The DOF official also clarified that the RMC does not only target online sellers and merchants, noting it also covers the payment gateways, delivery channels, internet service providers and other online facilitators.