The numerous restrictions imposed by the government on the people’s mobility and social contact have prompted two legislators to propose the easing of tax filing requirements and waiver penalties on late filing of income tax returns.
Assistant Majority Leader and Rizal Rep. Fidel Nograles said “Metro Manila residents should at least be given 15 more days to comply with the ITR requirement” while Albay Rep. Clemente Jose Sarte Salceda urged the Bureau of Internal Revenue to provide taxpayers with administrative remedies.
Salceda, chairman of the House of Representatives’ committee on ways and means, also said his committee “is recommending the easing of filing requirements in view of the April 15 deadline set by law on the filing of income tax returns.
“It makes sense to extend. While the April 15 deadline is written in the law, the commissioner of Internal Revenue can make exceptions in meritorious cases. That’s in the Tax Code. I understand the Secretary of Finance’s sense that they are constrained. But we have options.”
“We can extend the deadline, or we can temporarily waive the consequences of the deadline, which are penalties and surcharges. It makes sense to do either.” Salceda said.
In pushing for the ITR filing deadline, Nograles said that even the Supreme Court has extended the filing of pleadings to an additional 30 days from the original due date of filing due to the work suspension in the judiciary.
Salceda also said the electronic filing and payment system of the BIR will help avoid face-to-face interactions.
“The Large Taxpayer Service already requires electronic filing. That’s around 30 to 40 thousand companies. That accounts for around 68 percent of the revenue the BIR generates. We should ensure that the user experience is easy, so that individual and small taxpayers can navigate the system.”
“We were already doing that by facilitating the legislative side of the BIR’s digital transformation. It appears we are now compelled to fast-track it.”
“Definitely, it will help to extend the deadline and boost the electronic channels. I am already working with the DOF and the BIR to see what are options are. We have options to either extend in fact or extend in consequence. Either way works.” Salceda said.
Salceda proposed the tax deadline extension as part of a P199-billion package of measures that seek to boost the economy and compensate for possible welfare and economic losses due to COVID-19.