By Vanne Elaine TerrazolaÂ
The Department of Finance (DOF) will act on appeals to move the deadline for the filing of income tax returns (ITR) amid the month-long enhanced community quarantine being implemented in Luzon due to the novel coronavirus disease (COVID-19).
Sen. Vicente Sotto III
(Senate of the Philippines / MANILA BULLETIN FILE PHOTO) Senate President Vicente Sotto III said on Wednesday that he spoke to DOF Secretary Carlos Dominguez III to ask for the extension of the April 15 deadline for the filing of ITR. "Just got off the phone with DOF Sec Sonny Dominguez. I requested him to extend the deadline of the filing of taxes. He said he will act on it !" Sotto told reporters in a Viber message. "He said he is calling (for) a meeting right away to formulate the extension," he added.
Senator Grace Poe said the extension of payment periods by public utilities, banks, and government financial institutions will help ease the burden of Filipinos displaced by the COVID-19.
"Malaking tulong para sa ating mga kababayan ang pagsuspinde o pag-extend ng deadline ng mga bayarin sa kabila ng #COVID19PH (The suspension or extension of payment deadlines is a great help to our countrymen amid the COVID-19 crisis)," Poe said on her official social media accounts Wednesday, as she thanked the companies that implemented payment holidays to their respective customers.
The senator chairs the Senate Committees on Public Services; and Banks, Financial Institutions and Currencies.
Sen. Vicente Sotto III(Senate of the Philippines / MANILA BULLETIN FILE PHOTO) Senate President Vicente Sotto III said on Wednesday that he spoke to DOF Secretary Carlos Dominguez III to ask for the extension of the April 15 deadline for the filing of ITR. "Just got off the phone with DOF Sec Sonny Dominguez. I requested him to extend the deadline of the filing of taxes. He said he will act on it !" Sotto told reporters in a Viber message. "He said he is calling (for) a meeting right away to formulate the extension," he added.
In a radio interview, Sotto said Dominguez initially agreed to extend the deadline for at least two weeks, "until end of the month ng April".
Lawmakers have been appealing to the DOF, particularly the Bureau of Internal Revenue (BIR), to grant a tax payment holiday since the government placed Metro Manila under a community quarantine, and the entire Luzon under an "enhanced community quarantine" where strict home quarantine and lockdowns are enforced to counter the COVID-19.
Dominguez had earlier said that the deadline cannot be moved because it was set by law.
Under the National Internal Revenue Code, taxpayers should file their annual ITR on or before April 15 of each year. But Section 53 of the law grants the BIR Commissioner the authority to extend this deadline in "meritorious cases."
Dominguez had said that they could allow the filing of tentative ITR and waive interest fees for tax return amendments.
According to Sotto, the finance secretary admitted being concerned that government funds will deplete should the filing and payment of ITR be delayed.
"Una niyang sabi is baka nag-aalala daw siya, na baka lalo silang kapusin ng funding dito. Sabi ko hindi, kaannounce pa lang ni DBM Secretary na merong available na P21 billion ba 'yon, tapos...uutang pa," he said in an interview over radio DZBB later, citing for instance the Presidential Social Fund, or those from the Philippine Amusement and Gaming Corporation (Pagcor) and the Philippine Charity Sweepstakes Office (PCSO).
(He told me that he was concerned, that they might fall short funding in doing this. I told him no, since Department of Budget and Management Secretary Wendel Avisado had just announced that there is an available P21 billion, I think, and we will also avail of loans.)
"May mga pagkukunan pa eh (There are still sources of funds)," he maintained.
Sotto also assured Dominguez that the Senate will be ready to come up with pieces of legislation to cover for any loss revenues due to the extension of of the ITR filing.
"Kung magkakaproblema kayo, sabi ko May 4 nakabalik na kami, kung anong batas ang kailangan niyo to cover these we will do it. Pero right now, sabi ko nga, 'yong Section 53 ng Tax Code allowed ang Secretary, ang BIR, na magextend. Hindi kailangan ng batas (If they will have problems, I told that when we resume sessions on May 4, whatever law you need to cover these, we will do it. But right now, Section 53 allowed of the Tax Code allows the Finance Secretary, the BIR, to extend the deadline. They don't need a law for it)," he said.
"Importante makaisip muna sila ng paraan na medyo maibsan yong worry ng kababayan natin (What's important is that they would be able to devise ways to ease the worries of our countrymen)," he pointed out.