By Prinz Magtulis (The Philippine Star)
| Updated July 1, 2016 - 12:00am
At least 22 orders and regulations
issued by former Internal Revenue commissioner Kim Henares should be reviewed
or repealed, a tax industry group said. STAR/File photo
MANILA, Philippines - At least 22 orders
and regulations issued by former Internal Revenue commissioner Kim Henares
should be reviewed or repealed, a tax industry group said.
The Tax Management Association of the
Philippines (TMAP) will be presenting a list of rules it wants dropped to
Finance Secretary Carlos Dominguez and BIR chief Cesar Dulay, who promised to
meet with the group soon.
“We will be doing our courtesy calls to
(Dominguez and Dulay) and we will give them copies of the list,” TMAP president
Benedict Tugonon said in a text message.
“Our legislative committee is still
working on getting comments from our members. Expect that the list would only
increase,” he added.
Dulay earlier said he would review BIR
regulations.
On top of the list are Revenue
Memorandum Orders 24 and 25-2016, which Tugonon earlier said should not have
been issued during the transition to the Duterte administration.
The orders laid out tax probe rules for
property buyers and sellers who will not be able to show any financial capacity
to hold on to their assets. TMAP said the order is “unjust and unfair.”
There is also RMO 20-2013, which
prescribed requirements for non-stock, non-profit organizations to secure
certification from BIR to avail of the incentive. The group said it is
“unconstitutional.”
TMAP also branded as “too harsh” Revenue
Regulations 12-2012, which disallowed the withholding agent to pay its
deficiency taxes and claim it later on as deduction on gross income.
RR 18-2013, which mandates the automatic
issuance of final assessment notice 15 days after its preliminary counterpart,
should also be revoked, the group said.
Originally, a conference with the
taxpayer is held before FAN is issued. TMAP said without which, a
“mis-appreciation of facts” of the case by BIR is possible.
RMC 64-2016 defining the
“characteristics” of a non-profit organization qualified for tax relief is also
“too restrictive” and could be a “stumbling block” for schools, foundations and
non-government organizations.
Value-added tax (VAT) on condominium
dues under RMC 6-2012 should also be repealed since they are already part of
the gross receipts of condominium corporations.
RR 12-2012 that limits the value of the
vehicle that can be claimed as “depreciation expense,” meanwhile, is an
“over-regulation” for the BIR, TMAP said.
RMO 72-2010 and RMO 27-2016, which both
tackled treatment on tax treaties, are also being asked repealed.
“If the BIR really wants to help in
attracting foreign investors..., it could just rely on existing rulings issued
already by the BIR or proactively determine through government-to-government
channels if (other) countries...does not impose any tax on dividends paid by
Philippine corporations,” TMAP said.
Meanwhile, RR 18-2013, which imposes a
combined 40 percent deficiency and delinquency interests on failure to pay tax
due “encourages compromise” where the taxpayer is at the disadvantage.
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