BIR not happy with some banks on tax payments

The Bureau of Internal Revenue (BIR) is "very unhappy" over the cavalier attitude of at least six of its 28 accredited collecting banks during the last filing day of individual income tax returns last April 27.

Internal Revenue Commissioner Dakila Fonacier told reporters that a number of complaints were passed on to the BIR by some taxpayers who claimed that some of the accredited bank refused to accept tax payments or stopped accepting payments before the 3 p.m. closing time.

Fonacier identified two of the six banks as Metropolitan Bank and Trust Co. and Traders Royal Bank.

Fonacier said that as a result of the complaints, the BIR would review its accreditation of collecting banks.

He pointed out that while the filing and payment of income tax returns means added work for the bank staff, the bank earns from the fund "float."

Normally, Fonacier said the collecting banks are able to keep the tax payments for a period of five days before remitting these to the BIR. The banks are therefore able to earn from the funds for those five days.

Fonacier estimates that the fund float allows the banking system to earn at least P1 billion a day in interest.

Still, the BIR chief admitted the need to provide more financial incentives to the banks.

The BIR is thus studying the possibility of paying the banks a fee per return that is filed and paid through their branches.

During the April 17 income tax payment deadline, there were several complaints that some banks refused to accept income tax returns especially those who were not making any payments, but were merely filing their return.