BIR urges taxpayers to be truthful in tax amnesty bids

The Bureau of Internal Revenue (BIR) warned  taxpayers availing of the government’s tax amnesty program to be truthful in their applications for amnesty, saying that heavy penalties await them in cases of violations of the law.

The government, through the BIR started last Sept. 6 its tax amnesty program through the Tax Amnesty Act of 2007.

BIR Assistant Commissioner Jaime B. Santiago said taxpayers who file a Tax Amnesty Return or Statement of Assets, Liabilities and Networth (SALN) and willfully understates their net worth to the extent of thirty percent or more shall, upon conviction be subject to the penalties of perjury under the Revised Penal Code (RPC). 

“The willful failure to declare any property in the SALN and in the Tax Amnesty return will be deemed a prima facie evidence of fraud,” Santiago warned.

Such willful declaration will constitute a ground upon which attachment of such property may be issued in favor of the BIR to answer for the falsification of any judgment that maybe acquired against the defendant, the BIR official said. 

Also in addition to the penalties provided under the latest tax amnesty law, immediate tax fraud investigation shall be conducted to collect all taxes due, including increments and to criminally prosecute those found to have willfully evaded lawful taxes due. 

In the case of associations, partnerships or corporations, the penalty will be imposed on the partner, general manager, branch manager, treasurer, officer-in-charge and employees responsible for the violation, Santiago added. 

If the offender is an officer or employee of the BIR or any government entity, he or she will likewise suffer an additional penalty of perpetual disqualification to hold public office, to vote and to participate in any public election, the BIR official said.

The tax amnesty law is one of the fiscal reform measures of the present administration to help put the government’s fiscal consolidation program right on track. It does not only aim at helping the tax agency collect the much needed revenues for the government but also to update the tax agency’s taxpayer database.  The Tax Amnesty law, which took effect last May 28, immunes a qualified taxpayer from any law suits involving deficient tax payments covering the period 2005 and prior years if he or she pays the tax amnesty fee, which finance officials described as encouraging enough.

More individual taxpayers are availing of the program compared to corporate taxpayers, BIR Commissioner Lilian Hefti said.

“There are more individual taxpayers availing of the program but we’re hoping there would be more,” Hefti said. She said that the BIR still needs to enhance the awareness of taxpayers on the program. 

Under the law, the tax amnesty rate is five percent of a taxpayer’s net worth or a fee ranging from P25,000 to P500,000 depending on the net worth.

At present, the government is running after a total of P71 billion worth of unpaid taxes through the various tax evasion cases pending in court.