BIR warns agent banks to remit tax collections

The Bureau of Internal Revenue (BIR) has warned all authorized agent banks to remit on time the tax payments they collect from taxpayers.

BIR Commissioner Lilian Hefti said the BIR could revoke the licenses of agent banks that are delinquent in remittance of tax collections to the BIR.

For over-the-counter payments, the new float period, which took effect last July 1, 2008 is six to 10 days, while the float period for payments made under the BIR’s Electronic Filing and Payment System (EFPS) is three to five days.

“The BIR will impose stiff penalties for late remittances, including the revocation of the authority of the agent bank to collect internal revenue taxes,” Hefti said.

The BIR said it would review the float period twice a year based on the number of transactions processed and accepted by the agent banks on the same semester of the preceding year.

The tax agency will also base its review on the obligations and conditions stated in the memorandum of agreement (MOA) between the BIR and the agent banks. The higher the number of transactions processed, the longer the float period of the agent bank, the BIR said.

The total number of agent banks nationwide is 1,656. The BIR has advised these banks to summarize collections from over-the-counter tax payments of EFPS in a separate document, saying that they should not mingle or be mixed with the regular tax payments.

Hefti met with officials of agent banks recently, discussing several issues on acceptance of tax returns of newly transferred taxpayers and acceptance and reporting of tax returns and payments.

The two parties also discussed claims for refund pertaining to error or over-remittance of tax collected in prior years and timely remittance of collections.

Under the present system, internal revenue collections through the electronic payment system shall be credited to the account of the Bureau of the Treasury (BTr) on the date of collection and remitted on the date prescribed in a written communication by the Assistant Commissioner (ACIR) of the BIR’s Collection Service.

The BIR said that for over-the-counter transactions which include Debit System, Electronic Service Machine (ESM) and G-Cash, all internal revenue collections shall be credited to the Treasury’s account on the date of collection and remitted on the date prescribed in a written communication by the BIR to the concerned agent bank and the Treasury.