Grant of Tax Amnesty Spikes BIR Collection

 By Mortz C. Ortigoza

PANIQUI, Tarlac – Despite the ravaged done by the pandemic, the Bureau of Internal Revenue increased its collection last year when it reduced its tax goal and extended the amnesty for delinquent taxpayers up to June 30 this year.

Both revenue district office (RDO) chiefs in Revenue Regions 1 and 4 affirmed the prediction of this newspaper that Revenue Regulations (RR) Nos. 32-2020 and 33-2020 helped the tax collection efficiency especially last year when the government extended until June 30, 2021 the respective deadlines for availing of the Tax Amnesty on Delinquencies (TAD) and Voluntary Assessment and Payment Program (VAPP).

“Dalawa iyan nag-end ng December 31 ni extend ngayong June 30, 2021,” RDO No 17-B Chief Ma. Bernadette Mangaoang, who is based here, said.

TAX MEN who primordially handle the collection efforts of the government nationally and locally. From top photo clockwise are Bureau of Internal Revenue Commissioner Caesar Dulay, Revenue District Office No. 4 Chief Ernesto Mangabat, and RDO-Chief No. 17-B Ma. Bernadette B. Mangaoang.

Her pronouncement was echoed by Revenue District Office -No.4 Chief Ernesto Mangabat and Assistant RDO – No. 4 Chief Aldrin Camba of Central Pangasinan.

Taxpayers who do not want to pay the hefty penalties because they failed to pay their taxes in the past years can avail of the TAD and VAPP, Camba told this newspaper.

He explained that the twenty five percent surcharge, twelve percent interest, and the compromise penalties based on the table that commensurate to the debt of the errant taxpayer to the government can now be availed by paying only the five percent meted to a taxpayer of the entire back taxes since 2018.

“Iyong tatlong penalty na iyon ang ma wipe out at magiging isa na lang maging five percent of the basic,” he told this writer.

Camba said the voluntary assessment program was implemented through Revenue Regulations No. 21-2020 signed by BIR Commissioner Caesar Dulay last September 2020.

He said that the program could help add for the BIR's target of 2.61 Trillion collection last year.

The original deadline for availing of the TAD was December 31, 2020, as stated under RR No. 15-2020. This revenue regulation was an amendment to RR Nos. 11-2020, 10-2020, and 7-2020, which were issued by the BIR to implement Republic Act (RA) No. 11213 or the Tax Amnesty Law.

The new regulations were issued under RA 11494 or the Bayanihan to Recover As One Act, which allowed the extension of statutory deadlines and timelines to ease the taxpayers’ burden under COVID-19-related mobility restrictions.

Similarly, RR No. 33-2020 extends the deadline for availing of the VAPP.

Initiated by the Department of Finance and the Bureau of Internal Revenue (BIR) under RR 21-2020, the VAPP lets taxpayers voluntarily settle their unpaid internal revenue tax, with or without an ongoing audit and investigation.

Those who will do so shall not be audited for 2018 for the tax types availed.

As of last month, the BIR reported that it had collected more than P200 million from the program with just three months of implementation.

The majority of the applicants were small business taxpayers who wish to settle their 2018 tax liabilities.

“We are delighted that the VAPP has been helping our small and medium taxpayers settle their 2018 tax obligations while also generating additional revenue collection for the BIR. The same goes with the TAD program,” Undersecretary Antonette Tionko of the DOF Revenue Operations Group (ROG) said.

By extending further the two programs, the BIR hope to help more taxpayers settle their tax deficiencies amid the pandemic, she added.

RDO-17-B here collected more than P800 million from the government mandated target last year of more than P700 million. One of the two RDOs in Tarlac Province, RDO-17-B under Mangaoang covers the towns of San Manuel, Nau, Ramos, Pura, Gerona, Paniqui, Moncada, San Clemente, Camiling, Mayantoc and Sta. Ignacia.

The RDO-4 chief Mangabat was originally given a P5.3 billion target in year 2020 by the national government but due to the economic depression caused by the pandemic’s Corona Virus Disease-19 it was reduced to P3.3 billion. Of the P3.3 billion given to his office to target, Mangabat collected more than the billions of pesos goal tasked to him.

Mangabat supervises the cities of San Carlos and Dagupan and towns in central Pangasinan like Alcala, Basista, Bautista, Bayambang, Calasiao, Laoac, Malasiqui, Manaoag, Mangaldan, Mapandan, San Fabian, San Jacinto, Santa Barbara, and Urbiztondo.