Bureau of Internal Revenue

Bam Lauds BIR Extension for ‘No Payment’ Returns

“Salamat sa pakikinig sa ating mga Boss.”

Senator Bam Aquino lauds the Bureau of Internal Revenue (BIR) for granting a two-month reprieve to taxpayers with “No Payment” returns, a move that will benefit many small and medium enterprises and self-employed individuals.

“The extended deadline will be a big help to many of our SMEs and self-employed who are included in this category,” said Sen. Bam, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

Sen. Bam’s pronouncement came after BIR Commissioner Kim Jacinto-Henares announced that taxpayers with No Payment returns will be allowed to file manually but will be required to re-file electronically on or before June 15, 2015.

Earlier, Sen. Bam asked the BIR cancel the imposition of penalties on taxpayers covered by the Electronic Filing and Payment System (eFPS) or Electronic BIR Forms (eBIRForms) who failed to file tax returns under the electronic systems.

In his letter, Sen. Bam called on Henares to suspend imposition of penalties under Revenue Regulation No. 5-2015 until next year to give taxpayers enough time to familiarize themselves with the agency’s online facilities.

At the same time, Sen. Bam urges the BIR to clarify those covered by the e-filing for the guidance of the agency’s regional district offices (RDOs).

“It will be helpful if the BIR could cite some clear examples so taxpayers could assert that they are not required to e-file once they go to their respective RDOs,” Sen. Bam said.

“Based on numerous complaints from the taxpayers, the issuance of the revenue regulations and the memorandum circular has caused confusion regarding the proper implementation of the revenue regulations and the memorandum circular,” said Sen. Bam. 

“Tulungan natin ang ating maliliit na negosyante at hindi tayo maging pahirap sa kanilang mga negosyo,” added Sen. Bam.

Bam to BIR: Postpone Deadline, Cancel Penalties

“Huwag na nating pahirapan ang ating mga Boss.”

 

Senator Bam Aquino emphasized this plea as he reiterated his call to Bureau of Internal Revenue (BIR) Commissioner Kim Jacinto-Henares to suspend the imposition of penalties to taxpayers for failure to use its new electronic filing system.

 

“We should make things easier for our taxpayers, not make things difficult for them,” Sen. Bam stressed.

 

Earlier, Sen. Bam called on the BIR to cancel the imposition of penalties on taxpayers covered by the Electronic Filing and Payment System (eFPS) or Electronic BIR Forms (eBIRForms) who failed to file tax returns under the electronic systems.

 

The BIR issued the regulation on March 15, 2015 and it was published in a national daily two days later, giving taxpayers less than one month to comply with the new policy.

 

“The fines are not commensurateto the ‘offense’ of manual filing.  Saan ka nakakita, gusto na ngang magbayad, bibigyan mo pa ng multa,” he added.

 

Aside from this, Sen. Bam said the BIR personnel’s inability to explain the new procedures further adds to the taxpayers’ woes.

 

“The BIR local offices have conflicting statements on how to proceed, who are covered, determination of penalties, etc.  This creates uncertainty in our taxpayers which in turn lead to dissatisfaction.  Kahit yata sila nalilito how to implement this new policy,” Sen. Bam said.

 

Sen. Bam suggested that the BIR stick to the policy but extend the deadline for filing for another three months.

 

“The BIR also needs to ensure that their online system can handle the volume of downloads that will only increase in the next few days,” he said.

 

Sen. Bam also encouraged the BIR to establish online kiosks/stations at local BIR offices with personnel who will help input the returns of our taxpayers and teach them with new procedures.

 

“In this way,” Sen. Bam said, “BIR can fulfil its objective of migrating our taxplayers online, while dispelling any possible doubts and fears from our taxpayers on the new system.”

Sen. Bam’s Tax Bill to Unburden the Poor Gets Support

Several stakeholders are pushing for the passage of Senator Bam Aquino’s measure that exempts marginal income earners (MIE) from paying income tax.
 
The Tax Management Association of the Philippines (TMAP) and the Magna Carta for Workers Alliance (MAGCAISA) both expressed their support during the committee hearing on Aquino’s Senate Bill No. 2777 or the Marginal Income Earners (MIE) bill.
 
Representatives from both TMAP and MAGCAISA said the passage of Aquino’s measure would help unburden poor Filipinos, which is composed mainly of farmers, fishermen, tricycle drivers, small sari-sari storeowners and other micro-entrepreneurs.
 
Aside from throwing support behind the MIE bill, TMAP president Rina Manuel also called for the simplification of tax filings and processes for individuals and businesses.
 
MAGCAISA Steering Committee representative Elizabeth Angsiaco, for her part, batted for the expansion of the bill to cover all MIEs.
 
After the hearing, Aquino welcomed the snowball of support for his bill, saying the government should not take way the little income that poor Filipinos earn from their livelihood.
 
“I consider it a great disservice to our countrymen if the government will take away what was left of their meager income,” Aquino said.
 
Aside from hampering its growth, Aquino stressed that poor Filipinos will be discouraged to enter the formal economy if they would be subjected to tight scrutiny by the Bureau of Internal Revenue (BIR).
 
The senator noted that the number of registered MSMEs in the country – currently pegged at approximately 800,000 – has not grown in years.
 
“If we want to help them grow, we need to create an environment conducive for small businesses to thrive. We need to encourage those businesses in the informal economy to register and join the formal sector,” he added.
 
Aquino’s bill seeks to spare micro entrepreneurs, or self-employed individuals who earn not more than the minimum wage equivalent in their regions, from paying income tax, just like minimum wage earners.
 
The senator filed the measure after the Bureau of Internal Revenue released a memorandum circular – Revenue Memorandum Circular (RMC) No. 7-2014 – compelling MIEs to pay income tax returns.
 
According to BIR’s circular, MIEs include agricultural growers/producers such as farmers and fishermen selling directly to consumers, small sari-sari stores, small carinderias or “turo-turos,” and drivers/operators of a single unit tricycle.

BIR Opposes Sen. Bam’s “People’s Fund Bill”

A proposed “People’s Fund Bill”, authored by Senator Bam Aquino, will give taxpayers the power to choose where to allocate five percent of their income tax.

Sen. Aquino reiterated this during Tuesday’s hearing of the Senate Ways and Means Committee, regarding Senate Bill No. 1356 or the “People’s Fund Bill”.

The People’s Fund Bill creates mechanisms for taxpayers to allocate part of their income taxes to an accredited charity or civil society organization, a priority national or local government project, or a legitimate political party.

According to Sen. Aquino, the “People’s Fund Bill” could very well complement the government’s P130-billion rehabilitation plan for provinces devastated by super-typhoon Yolanda.

“Through the People’s Fund Bill, the public can help survivors of Yolanda more quickly get back on their feet,” Aquino said.

The senator stressed that the government needs all the help it can get from different sectors in the aftermath of several calamities that hit the country this year.

During the hearing, Bureau of Internal Revenue (BIR) Commissioner Kim Henares expressed apprehension over the passage of new tax reform bills.

In his response, Sen. Aquino said, “We disagree with the BIR on this issue. We understand their objective to collect more taxes for the country, but we also need space to support initiatives that will promote the development of our people and increase their participation in governance.”

Henares later on said that the government is ready to implement the “People’s Fund Bill” if it will be enacted into law.

Henares also called for a stringent accreditation process for charity or civil society organization, which stand to benefit from the bill.

 

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