BIR

Bam: Postpone Penalties under BIR’s eFPS, eBIR Systems

Senator Bam Aquino calls on the Bureau of Internal Revenue (BIR) to defer 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 requested BIR Commissioner Kim Jacinto-Henares to suspend imposition of penalties under Revenue Regulation No. 5-2015 until next year to give taxpayers ample time to become acquainted with the agency’s online facilities.

The BIR issued the regulation on March 15, 2015 and it was published in a national daily two days later.

“We are concerned with the short timeframe of less than a month given to taxpayers to transition to the new systems, given that the deadline for filing of income tax returns is on 15 April 2015 already,” Sen. Bam said in his letter.

Sen. Bam made the move after receiving several complaints from private sector partners regarding RR No. 5-2015.

Under RR No. 5-2015, all taxpayers mandatorily covered to file their returns using eFPS or eBIRForms, who fail to do so, shall be imposed a penalty of P1,000 per return pursuant to Section 250 of the National Internal Revenue Code (NIRC) of 1997, as amended.

In addition, the taxpayer shall also be imposed civil penalties equivalent to 25 percent of tax due to be paid, for filing a return in a manner not in compliance with existing regulations.

Moreover, Revenue District Offices are directed to include the non-compliant taxpayers in their priority audit program.

At the same time, Sen. Bam lauded the BIR for its effort to develop and institute a paperless tax filing and payment process through the eBIR and eFPS facilities.

“We believe that this will improve the Bureau’s tax return monitoring and make it easier for taxpayers to prepare, file and pay their tax returns,” Sen. Bam said.

Transcript of Sen. Bam Aquino’s Interview after the 2nd Port Congestion Hearing

Iyong problema natin sa port congestion, physically, medyo gumaganda na. Iyong paglabas ng mga containers tumataas na.  In fact, mas mataas na siya bago nagkaroon ng truck ban.

Pero iyong charges, naroon pa rin. Iyong increased charges na iyan ang nagdudulot ng pagtaas ng presyo ng bilihin.

We really have to look at the charges that are being imposed on the different stakeholders.

Iyong isang pinanggagalingan ng charges, mula sa shipping lines, we need to see kung justifiable ba talaga ang charges na iyon o hindi.

Mayroong mga charges na opisyal at mayroon ding unofficial o iyong tinatawag nating under the table. Iyon din, kailangang matigil din para mabalik natin ang sitwasyon iyong bago ang truck ban at ma-prevent natin ang pagtaas ng presyo ng bilihin.

 

Q: Iimbitahan ba ang shipping lines sa next hearing?

A: Yes. Ganito kasi iyan, iyong truckers pag dinadala iyong container, dinadala iyan to a specific container yard. At iyong partnership na iyon ay between the container yard at shipping line.

So walang rason, pagdating ng trucker doon sa container yard, sasabihan siya wala nang space. Ibig sabihin doon, hindi nagkaroon ng pagkakaunawaan ang container yard at shipping line.

Ang trucker naman, pinaalis siya walang space, dumadami ang oras na naha-hire siya, tumataas ang sinisingil niya sa importer. Ang importer naman i-cha-charge iyon sa taumbayan.

Kaninong responsibilidad na mayroong container yard, siyempre sa mga shipping lines iyon.

Ang masakit diyan, iyong shipping lines natin, kapag late binalik ang container, icha-charge ka pa rin.

In short, some of these charges need to be investigated. DTI has volunteered na tipunin ang mga shipping lines. I-analyze ang mga charges na ito at tingnan kung ano ba ang justifiable at iyon ba ang mamimihasa na lang. Nag-iba na ang sitwasyon at kailangan nang ibalik iyon sa dati.

 

Q:  Mas gusto pa nga nilang nade-delay, dahil higher ang charges ng shipping lines.

 A: Hindi lang shipping lines.

Marami pong mga elemento, na may gusto nilang may delay, gusto nila may inefficiency at gusto nilang may congestion kasi nakakapag-charge sila, nakakahingi sila under the table, ang talo diyan ang taumbayan.

Kaya dapat isa-isahin natin ito at tingnan natin ang mga charges na unjustifiable na. Ano ba ang mga proseso na nakakadagdag sa problema, legal processes.

We talked to Customs and BIR today, baka may proseso sila na dapat bawasan na and of course, i-curb natin ang corruption.

Sabi nila noon daw, may pang-tip sila, tagbe-bente pesos, iyong mga ganun daw libu-libo na daw ngayon.

We have to stop that and we can only stop that one is meron tayong monitoring, two mayroon tayong enforcement may nakukulong dahil sa bribes na iyan. At hindi lang siya sa government dahil sa private sector may pangyayari ding ganyan.

Pangatlo, we really need to push for technology dahil ito ang nakikitang solusyon dito. Kung mayroon tayong ticketing system o tracking system, hindi na magkakaroon na nagta-trapik sila, nagsasabay-sabay, nakapila sa port na wala namang negosyong makukuha.

If we have that technology, which these days din a ganun kahirap iyon, and they were following the system, it will help our truckers in terms of their efficiency and at the same time, puwede pang bumaba ang kanilang sinisingil dahil mas efficient sila.

 

Q: Do you agree to the proposal na no-human contact, no-paper policy?

 A: Ganoon po talaga dapat. As soon as possible dapat. In  fairness, kumuanti na nang kumaunti iyon through the years. Ngayon, talagang less and less na ang nakikita mo.

Pero siguro if we can implement that, not just for port operations, but for BIR and Customs, it will help solve corruption.

 

Q: May ilang foreign business groups na nagsabing they will stop business sa Pilipinas kapag di na-solve ang port congestion.

A: Kung mayroon silang mga issue, temporary lang iyan. Kung tutuusin, iyong ekonomiya natin ngayon, we’re the best economy in the ASEAN.

Mahihirapan sila na hindi i-access ang market natin. Maybe pansamantala, they’re having some issues but as fast as we solve this problem, they will be back because this is a huge market.

They need the Philippines to do business well.

 

Q: So hindi dapat balewalain ang threat na iyon?

 A: Siyempre hindi. Lahat ng negosyo dito iyong ang hinihikayat natin. We want more foreign investments in the Philippines, we want more trade to happen. That’s why patuloy itong mga hearing at patuloy ang pagresolba ng isyung ito.

 

Q: Do you think we can manage the influx of goods this Christmas season?

 A:  Since we started this hearing, marami nang improvements. Each step na may bagong improvement, may bago ring na-uncover na problema.

Palagay ko, ang kinakailangan naming gawin, bilang Committee on Trade, is to make sure na ang solusyon natin all the way.

Hindi puwedeng halfway lang. Pakakawalan natin and in a year’s time, ito na naman ang problema.

We have to go all the way.

If you notice na sa hearing natin, we went from short term to medium term to long term. The best way to resolve these issues, gawin natin ang short term sa mabilis na panahon pero huwag pakawalan ang medium at long term solutions kasi iyon ang magdidikta kung mangyayari pa ito uli o we can really move forward and improve our port situation and our economy and make sure na hindi magtaasan ang presyo ng produkto.

 

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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