Trade group bucks VAP proposal of DOF

Local businessmen are opposing the proposal of the Department of Finance to implement a voluntary assessment program (VAP) and a gross income taxation scheme.

The Taxation Reform Task Force of the Makati Business Club (MBC) has requested a meeting with Finance Secretary Jose Isidro Camacho to present its views on the two specific fiscal reform measures of the Arroyo Administration, namely the VAP of the Bureau of Internal Revenue (BIR) and the gross income taxation scheme.

The MBC Taxation Reform Task Force is headed by former Finance Secretary Roberto F. de Ocampo, who is now the president of the Asian Institute of Management (AIM).

According to the MBC task force, the proposed taxation schemes "may not be attractive to taxpayers who have substantially complied with the existing tax laws and regulations and have made significant tax payments."

The MBC task force is proposing three alternative schemes.

According to the MBC task force, taxpayers who would like to pay their unpaid taxes may amend their corresponding tax returns and pay the basic deficiency tax due without penalties.

However, they would not be entitled to the privilege of last priority in audit and investigations.

Another option the MBC task force is proposing would involve clarification or rationalization by the BIR of the manner of computation of the VAP amount to be paid in cases where no tax returns have been filed.

The third option would be for the government to extend the period for VAP availment up to Dec. 31 this year, considering the complexity of the provisions of the regulations and the numerous documentary requirements to be attached to the VAP availment forms.

According to the MBC task force, an extension would also give taxpayers sufficient time to determine the deficiency tax, compute the VAP amount, prepare the required forms and raise the necessary fund.