www.tmap.org.ph
April - May 2015 Issue
TMAP MONITOR Debriefing on eBIR Forms in April GMM 2001, in relation to the Electronic Commerce Act. The coverage was initially voluntary for large and non-large taxpayers. In 2002, the electronic filing and payment system (EFPS) became mandatory for large taxpayers and optional for certain identified non-large taxpayers. Subsequent BIR issuances further expanded the coverage of EFPS, the most recent one in 2013 which included all National Government Agencies. (continued on page 3)
On April 23, 2015, TMAP invited Hon. Nelson M. Aspe, Deputy Commissioner of the Bureau of Internal Revenue (BIR), and Mr. Bill Gardner, Chief of Party, DAI - Facilitating Public Investment (a USAID-funded organization) as panelists in a Round Table Discussion on the mandatory use of on-line eBIRForms. The discussion served to identify challenges and suggest enhancements to enable the BIR to effectively implement the e-filing of returns. The electronic filing and payment facility was first introduced through Revenue Regulations No. 9-
TMAP, Other Business Groups and Joint Foreign Chambers Proposed Changes to TIMTA TMAP, together with Philippine Business Groups and Joint Foreign Chambers (PBG-JFC) submitted a position paper to lawmakers, to suggest changes to the proposed Tax Incentives Management and Transparency Act (TIMTA) or House Bill 2492 and Senate Bill 2669.
TIMTA seeks to provide a solution for the lack of empirical data on fiscal incentives, thus enabling the government to "evaluate and maximize revenue spent towards boosting the country's economic growth”. While TIMTA promotes transparency and accountability in the granting of incentives, the Joint foreign chambers and business groups filed a position paper to protest against certain provisions of the TIMTA and at the same time calling for:
Removal of requirement for electronic filing Lower administrative penalties for failure to submit application to avail of income tax-based incentives instead of forfeiture of incentives Removal of a provision that extends prescriptive period by 18 months Clarification of the scope of information to be published about the monitoring of tax incentives and the role of the BIR on the validation of incentive claims Inclusion of supplemental data such as taxes directly paid by the registered enterprises or taxes remitted by them on behalf of other taxpayers, including withholding tax on compensation and fringe benefits tax, in the data analysis.
Under the TIMTA, the Finance department is required to maintain a tax incentives database issued by the various investment promotion agencies, and the National Economic and Development Authority to do a cost-benefit analysis on the impact of these incentives to the Philippine economy. Signatory organizations include the American Chamber of Commerce of the Philippines, Australian-New Zealand Chamber of Commerce of the Philippines, Canadian Chamber of Commerce of the Philippines, European Chamber of Commerce of the Philippines, IT and Business Process
Association of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines, Korean Chamber of Commerce of the Philippines, Management Association of the Philippines, Philippine Association of Multinational Companies Regional Headquarters, Philippine Chamber of Commerce and Industry, Philippine Exporters Confederation, Semiconductor and Electronics Industries in the Philippines Foundation, and Tax Management Association of the Philippines.
AOTCA International Convention in October 2015 The 2015 Asia-Oceania Tax Consultants’ Association (AOTCA) international conference will be hosted by the Japan Federation of Certified Public Tax Accountants’ (CPTAs) Associations. It will be held from October 1416, 2015, in Osaka, Japan. The venue will be at the Osaka International Convention Center – “Grand Cube Osaka”. Among the topics for discussion are (1) Tax Education Promoted by Tax Professionals and (2) BEPS Action Plan – Perspectives of Government and Industries Per Country/Region. AOTCA was founded in 1992 by 10 tax professional bodies located in the Asian and Oceanic regions. It has expanded to embrace 20 leading organizations, including TMAP, from 16 countries/regions.
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Deputy Commissioner Aspe elaborated on the rationale of the eBIR forms which included the need for accurate data capture and storage, administrative ease and immediate accessibility of taxpayer information. While the eBIR forms facility was already rolled out in 2014, BIR expected compliance of only 40% enrolment. By March 2015, there was a consensus to make eBIR forms compulsory due to prior year’s experience with TAMP taxpayers who were required to use EFPS but around 80% did not comply.
Debriefing on eBIR forms in April GMM (continued) The BIR then introduced a 2nd electronic platform, the eBIR forms, authorized for use on a pilot basis for Metro Manila starting October 2012. The eBIRForms was developed to “provide taxpayers particularly the non-eFPS filers with accessible and convenient service through easy preparation of tax returns.” In 2013, coverage was expanded to noneFPS filers (optional) and to accredited tax agents (ATAs) filing in behalf of their clients who are noneFPS filers (mandatory). In September 2014, coverage became mandatory for identified non-eFPS filers or taxpayers to use eBIRForms covering thirty six (36) BIR Forms in the preparation and filing of their returns. Taxpayers may opt to submit their tax returns manually using the eBIRForms Offline Package at their respective revenue district offices or electronically through the use of the Online eBIRForms System. In March 2015, identified noneFPS filers were now required to use the on-line eBIR Forms facility in electronically submitting and filing all their tax returns under RR 5-2015. The RR further imposed civil penalties equivalent to 25% of the tax due to be paid, for filing a return in a manner not in compliance with existing regulations. Several subsequent issuances were also released which relaxed mandatory requirements and introduced work-around procedures. Confusion on the requirements and the limited accessibility of the system resulted in frustration for the taxpayers who just want to comply with the annual filing requirements.
Mr. Gardner discussed DAI’s role in assisting the BIR in the enhancement of the electronic filing facility. For the BIR to enhance its collection efficiency, a working electronic platform is necessary to enable BIR to identify entities which do not remit taxes on a real-time basis. The primary aim for the initial roll-out is progress and not perfection and thus, it is understandable that issues are encountered. He noted, however, that the 25% surcharge was a heavy burden for Philippine taxpayers. He then shared his experience in the US where it also took several years before full automation was successfully implemented.
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2015 TMAP Summer Outreach Project On May 30, 2015, TMAP, in partnership with the Climb Against Cancer, Tarlac Mountaineering Club and the Storytelling Project, held its summer outreach project with students and teachers of Burog and San Martin elementary schools, Bamban, Tarlac.
Upon reaching the venue, the teachers gathered the children and Mr. Rey Bufi of the Storytelling Project started an interactive storytelling activity. While some volunteers joined the children in the storytelling activity, others prepared the food to be distributed to the children and their parents. The children enjoyed the parlor games and each received their own toy.
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TMAP donated school supplies and slippers to the students and teach materials to the teachers. The project brought hope and smiles to about 250 public school students from preschool to Grade 6, most of them coming from the Mang Antsi Aeta tribe. With the fun and happiness shared with the children, the volunteers were glad to join the activity.
Contact us Unit 1904, Cityland Herrera Tower Corner V. A. Rufino & Valero Streets Salcedo Village, Makati City Tel. No. 840-2325 Fax No. 346-8104 Website: www.tmap.org.ph E-mail: tax_map@yahoo.com
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