Government offers Amnesty on Tax Delinquencies
By Eleonor Capili
STARTING APRIL 24, 2019 until April 24, 2020, qualified taxpayers with tax delinquencies are given the chance to clean their tax records and avoid facing possible criminal charges and stiff penalties through availment of the Tax Amnesty on Delinquencies being offered by the government under Republic Act (RA) No. 11213 (Tax Amnesty Act).
To implement the Tax Amnesty provisions on tax delinquencies, the BIR has issued Revenue Regulations (RR) No. 4-2019 on April 8, 2019.
The Tax Amnesty, when granted, is final and irrevocable. Taxpayers who availed of the Tax Amnesty and fully complied with all the conditions set forth in RR No. 4-2019 shall enjoy certain immunities and privileges, such as the lifting of notices of levy, attachments or warrants of garnishments issued, if any; settlement of the tax delinquency(ies); and termination of criminal case and its corresponding civil or administrative case in connection therewith.
The availing taxpayer shall also be immune from all suits or actions, including the payment of said delinquency or assessment, as well as additions thereto, and from all appurtenant civil, criminal and administrative cases, and penalties under the 1997 Tax Code, as amended, as such relate to the internal revenue taxes for the taxable years that are subject of the Tax Amnesty availed of.
All persons, whether natural or juridical, with internal revenue tax liabilities covering taxable year 2017 and prior years, may avail of the Tax Amnesty on Delinquencies under any of the following instances: 1) With Delinquent Accounts as of April 24, 2019 (effectivity of RR No. 4-2019); 2) With pending criminal cases with the Department of Justice (DOJ)/Prosecutor's Office or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the Tax Code, as amended,
with or without assessments duly issued; 3) With final and executory judgment by the courts on or before April 24, 2019; and 4) Withholding tax liabilities of withholding agents arising from their failure to remit withheld taxes.
The abovementioned Delinquent Account pertains to tax due from a taxpayer arising from audit of the BIR, which had been issued Assessment Notices that have become final and executory due to the instances specified in the Regulations. These accounts include i) Delinquent Accounts with application for compromise settlement either on the basis of doubtful validity of the assessment or financial incapacity of the taxpayer, whether the same was denied by or still pending with the Regional Evaluation Board or the National Evaluation Board, as the case may be, on or before April 24, 2019; ii) Delinquent Withholding Tax liabilities arising from non-withholding of tax; and iii) Delinquent Estate Tax liabilities.
The Tax Amnesty to be paid by the taxpayer shall be computed based on the Basic Tax Assessed, which shall be as follows: 40% for Delinquent Accounts and assessments which have become final and executory; 50% for tax cases subject of final and executory judgment by the courts; 60% for those with pending criminal cases filed with the DOJ/Prosecutor's Office or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the Tax Code, as amended; and 100% for Withholding Agents who withheld taxes but failed to remit the same to the BIR (which shall also apply in all cases of non-remittance of Withholding Taxes).
In cases where the delinquent taxes have been the subject of application for compromise settlement, whether denied or pending, as well as cases with partial/installment payments, the amount of payment shall be based on the net basic tax/net amount as certified by the concerned office.
In case the delinquent account/assessment consists only of unpaid penalties due to either late filing or payment, and there is no Basic Tax Assessed, the taxpayer may avail of the Tax Amnesty without any payment due.
The Notice of Issuance of Authority to Cancel Assessment shall be issued by the BIR to the taxpayer availing of the Tax Amnesty on Delinquencies within fifteen (15) calendar days from submission of the Acceptance Payment Form (APF) and Tax Amnesty Return (TAR). Otherwise, the stamped "Received" duplicate copies of the APF and TAR shall be deemed as sufficient proof of availment.
The documentary requirements, place of filing of the Tax Amnesty Return (TAR) and procedures on how to avail the Tax Amnesty on Delinquencies are specified in the Regulations. (See full text of RR No. 4-2019 and other related revenue issuances at the "Tax Amnesty" portion of www.bir.gov.ph)
Tel. No. (+63 2) 985 4322
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