PSALM adopts electronic payment system

The Power Sector Assets and Liabilities Management Corp. (PSALM) has adopted the Electronic Filing and Payment System (eFPS) to ensure a more efficient and cost-effective filing and payment of its corporate and individual income taxes, including those subject to withholding such as the value-added tax and other percentage taxes.

PSALM is a government agency tasked to privatize the assets of the National Power Corp. (Napocor).

PSALM financial services department manager Cesar V. Ramirez said the eFPS, developed and maintained by the Bureau of Internal Revenue (BIR), is the electronic filing of tax returns, including attachments, and the payment of taxes due through the Internet. The payments are made using the Internet banking facilities of BIR’s accredited agent banks.

The eFPS allows taxpayers paperless tax filing and online payment through the convenience of an Internet banking service via debit from their enrolled bank account.

Approved by the PSALM board last October and formally launched early this month, the eFPS significantly "reduces manpower and related costs," Ramirez said.

"The system also provides safety nets and check and balance measures to ensure dependable and accurate transactions. Thus, the chances of error are minimized because all of the information we supply is validated before final submission. Aside from being cost effective, the eFPS promotes transparency in paying our taxes," Ramirez said.

He pointed out Ramirez said his department used to assign a number of employees to work full time in processing PSALM’s various taxes, including filing and payment, to be able to meet deadlines.

"With the eFPS, these employees can now be assigned other tasks aside from their main responsibility," he said. "Thus, their efficiency is developed, and we don’t need to hire new employees to do their job."

In terms of cost effectiveness, the eFPS substantially reduces processing cost of returns and payments such as receiving, pre-processing, encoding, error handling and storage.

PSALM budget, tax and billing division manager Alvin Diaz said the agency has tapped Land Bank of the Philippines as its accredited agent bank.

"We already have an existing account with them, which means processing and checking of transactions will be easier and more convenient," Diaz said.

Ramirez said they see PSALM’s adoption of the eFPS as "very timely," especially with the implementation of the wholesale Electricity Spot Market (WESM) whose trading activities are seen yielding substantial remittances. PSALM will be one of the major participants in the spot market when it starts commercial operation anytime this year.

"To be sure, with the eFPS, the processing, filing and submission of these remittances will be quick, simple and secure. Response time and acknowledgment will also be quicker as the system is available 24 hours a day, seven days a week, including holidays," he said.