Senate bill for taxpayers passed after 2nd reading

By Butch Fernandez @butchfBM

SENATORS passed on second reading late Tuesday a bill laying down rights and duties of taxpayers as the government revs up revenue generation.

The enabling legislation, expected to breeze through on third and final reading within the second regular session, is awaited to line up rights and obligations of taxpayers.

According to Senator Sherwin T. Gatchalian, chairman of the sponsoring Ways and Means committee, the co-authors of the bill are lining up additional provisions, including listing the rights of taxpayers “in a simplest way.”

The senator added it would include “pertinent rules and regulations related to taxation.”

Moreover, it includes the rights of taxpayers, “clearly spelling out how they can invoke these rights, defend themselves, get good lawyers, accountants or customs brokers and enter into amicable settlement if accused of not paying the proper taxes,” Gatchalian said mostly in Filipino.

The bill also addresses the right to privacy of taxpayers, as well as their right to insist that the revenue authorities—Bureau of Internal Revenue and Bureau of Customs—“not publicize their tax records.”

As proposed, erring revenue authorities face sanctions if found violating the taxpayers’ “right to privacy” with the publication of their tax records.

Any violation by the Bureau of Internal Revenue, the Bureau of Customs and other tax-collecting agencies may incur penalties of six months to 6-years jail term and fine ranging “up to P1.5 million.”

On the other hand, the bill will line up the basic obligations of taxpayers, including compliance with the law, especially paying the right taxes on time.

To note, the Supreme Court has reiterated in its ruling in 2021 (G.R. 222476, promulgated on May 5, 2021), the importance of procedures and rules on assessment of national internal revenue taxes.