Published — June 1, 2022
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read also: TAX AMNESTY ON DELINQUENCIES
Republic Act No. 11213 entitled “An Act Enhancing Revenue Administration and Collection by Granting an Amnesty on All Unpaid Internal Revenue Taxes Imposed by the National Government for Taxable Year 2017 and Prior Years with Respect to Estate Tax, Other Internal Revenue Taxes, and Tax on Delinquencies” otherwise known as the “Tax Amnesty Act” was enacted to protect and enhance revenue administration and collection and make the country’s tax more equitable.
For the implementation of the above-stated Tax Amnesty Act, Revenue Regulations No. 4-2019 (RR 4-2019), which took effect on April 23, 2019, was issued by the Department of Finance through the Bureau of Internal Revenue (BIR). Under RR 4-2019, all persons, natural or juridical with internal revenue tax liabilities covering taxable year 2017 and prior years may avail of Tax Amnesty on Delinquencies within one (1) year from its effectivity, under any of the following instances:
a. Delinquent accounts as of the effectivity of RR 4-2019, including the following:
i. Delinquent accounts with application for compromise settlement either on the basis of:
1. doubtful validity of the assessment; or
2. financial capacity of the taxpayer
ii. Delinquent withholding tax liabilities arising from non-withholding of tax; and
iii. Delinquent Estate Tax liabilities
b. With pending criminal cases with the Department of Justice or Prosecutor’s Office or the courts for tax evasion and other criminal offenses under the Tax Code, as amended;
c. With final and executory judgment by the courts on or before the effectivity of RR 4-2019; and
d. Withholding tax liabilities of withholding agents arising from their failure to remit withheld taxes.
On March 16, 2020, the President Rodrigo R. Duterte, through
Proclamation No. 929, has declared a State of Calamity throughout the Philippines and imposed an Enhanced Community Quarantine (ECQ) throughout the island of Luzon due to COVID-19 pandemic. In consideration of the current circumstances prevailing in the country, Section 3 of RR 4-2019 was amended by Revenue Regulations No. 5-2020 (RR 5-2020). Section 2 of RR 5-2020 states the following:
“SECTION 2. AMENDMENT. – Section 3- Coverage of RR 4-2019 is hereby amended to read as follows:
All persons, whether natural or juridical, with internal revenue tax liabilities covering year 2017 and prior years, may avail of Tax Amnesty on Delinquencies within one (1) year from the effectivity of these Regulations or until April 23, 2020 under any of the instances listed below. However, the said date may be extended if the circumstances warrant the extension such as in case of country-wide economic or health reason/s.
XXX”
The ECQ was originally set to last until April 12, 2020. Prior to the supposed last day of the ECQ, the BIR issued Revenue Memorandum Circular No. 33-2020 dated March 24, 2020 extending the deadline to avail of the tax amnesty on delinquencies from April 23, 2020 to May 23, 2020. However, on April 7, 2020, the BIR issued Revenue Memorandum Circular No. 38-2020 (RMC No. 38-2020) amending RR 5-2020 particularly on the duration for the availment of the Tax Amnesty. This time, RMC No. 38-2020 further extends the deadline to avail tax amnesty on delinquencies from May 23, 2020 to June 8, 2020.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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