UnionBank gets nod to accept e-payments

UnionBank of the Philippines (UnionBank) announced yesterday that it has been formally accredited by the Monetary Board to accept e-payments from large taxpayers who are required to file and pay electronically using the Bureau of Internal Revenue’s Electronic Filing and Payment System (EFPS) by July 1, 2002.

The electronic filing component of EFPS took effect April 1 this year but electronic payment or e-payment shall be mandatory for all large taxpayers by July 1 according to BIR Revenue Memorandum Order No. 5-2002. The BIR memorandum covers several tax returns which can now be filed through EFPS via the Internet. These are: tax withheld on compensation, income tax, excise tax, value added tax and quarterly percentage tax.

UnionBank’s announcement was welcomed by corporate customers which have also been long-time users of its various electronic and web-based cash management collection and disbursement products.

UnionBank product manager Jod Garcia said: "We are among the first to introduce e-payment in the country and our experience in this area, including that of our own customers’ made us to be the best most ready with regard to BIR’s EFPS requirements."

New or first-time e-payment users expressed concern on security of paying over the Internet but this was quickly addressed by Ed Olaguer, corporate eBusiness head of UnionBank, who said, "Unionbank employs and adopts globally accepted security standards with regard to Internet payments. Among our security features are 128-bit SSL or secure socket layer, stringent registration process, user authentication and authorization controls, comprehensive audit trails, and most of all, our customers will be comforted to know that we have ready back-up facilities for this purposes."

Prior to UnionBank’s accreditation, tax payments of large taxpayers were restricted to government banks.