BIR reviewing policy on tax payment accreditation of banks

 The Bureau of Internal Revenue (BIR) is reviewing its policy governing the accreditation of banks for tax payments.

The move is to address complaints from taxpayers against banks which do not accept tax payments during the annual income tax filing season.

Taxpayers go to banks to file their income tax returns when income tax filing nears the April 15 deadline. However, some taxpayers have complained that they are turned away by some banks for being non-depositors.

BIR deputy commissioner for operations Nelson Aspe said the situation has forced taxpayers to swamp other banks, which in turn, cause undue inconvenience to the general public.

 “To address these problems, it is imperative to make the necessary changes to the existing policies relative to the collection and remittance of taxes paid through accredited banks,” Aspe said.

According to the BIR, all banks presently authorized to collect internal revenue taxes may continue to do so until such time that a new memorandum of agreement (MOA) is executed among the BIR, the Bureau of Treasury (BTr) and the banks which have qualified for accreditation.

Based on the proposed agreement, all internal revenue collections for electronic filing transactions shall be credited to the account of the BTr on the date of collection and remitted on the date prescribed in a written communication by the Assistant Commissioner of the BIR’s Collection Service.

For over-the-counter transactions, all internal revenue collections shall be credited to the account of the BTr on the date of collection and remitted on the date prescribed.

Prior to the execution of the agreement, all accredited banks shall comply with the responsibilities indicated in the existing agreement.

The banks should also file a letter of intent indicating the list of branches for accreditation and submit the necessary documents within 30 days from effectivity of the regulations.

In the case of penalties for late remittance of tax  collections, full payment of penalties imposed shall be paid, except for those who have pending application for compromise settlement filed and received not later than Dec. 31, 2007.

The BIR said the authority of an accredited bank to collect internal revenue taxes shall be revoked upon failure to renew accreditation, submit documentary requirements and to settle outstanding penalties as notified by the BIR within the specified period.