BIR extends VAP deadline anew

Finance Secretary Jose Isidro N. Camacho, upon the recommendation of Internal Revenue Commissioner Rene G. Bañez, has again extended the deadline for its voluntary assessment program [VAP] until Dec. 15, 2001 due to representations by the business sector because of the difficulty in the cash flow of business establishments resulting from the Sept. 11 terrorist attacks on the US.

Revenue Regulations 16-2001 that provided the rules for the extension also allows for a more flexible manner of payment through installments if the VAP amount is over P5 million.

If the VAP amount is over P5 million but not more than P10 million, 50 percent of the amount may be paid at the time of filing of the application and the other 50 percent one month thereafter.

On the other hand, if the amount exceeds P10 million, payment may be done in three equal monthly installments, 33.33 percent of the total amount at the time of filing of the VAP application and 33.33 percent each for the immediately succeeding two months.

The VAP, which is a component of the revenue enhancement measures of Bañez, allows taxpayers who have erroneously filed and paid tax returns before Dec. 31, 2000 to clean up records and settle their accounts with the government.

The program applies to all taxes, including one-time transactions like estate tax, donor’s tax, capital gains tax, withholding tax, and documentary stamp tax on the sale, exchange, or disposition of real property and/or shares of stocks.

VAP, however, does not cover cases under preliminary assessment notice or final assessment notice and those with collection letter, on or before July 31, 2001.

Neither does it cover tax fraud cases already filed and pending in courts and those taxpayers with unpaid tax liabilities as reflected in their books of accounts.