ITR marked tentative still subject to review

MANILA, Philippines - The Bureau of Internal Revenue (BIR) stressed that income tax returns marked as tentative may also be the subject of an examination pursuant to the tax code.

The BIR issued revenue memorandum circular 50-2013, emphasizing that the agency would consider a tentative tax return as the final one unless the taxpayer files an amended return.

The government’s main tax collection agency said taxpayers are barred from making any changes to the tentative tax returns filed once an electronic letter of authority or any other notice of audit is received.

According to the BIR, some taxpayers file tentative returns only  for the purpose of meeting the tax payment deadline.  “Nevertheless, it was noted that these taxpayers have not been filing the corresponding final returns to reflect their supposedly correct tax liabilities,” the BIR said.

In a tentative return, the taxpayer implies the incompleteness or the non-finality of the data considered in arriving at the tax base and therefore the correct tax due cannot possibly be computed.

“In affixing the signature, the taxpayer is also declaring that the return filed is made in good faith, is true and correct and in accordance with the provisions of the National Internal Revenue Code and existing regulations,” the BIR noted.

The BIR has urged taxpayers to  make sure they file amended tax returns to reflect their correct tax obligations.

“The filing of amended tax returns and finalization of its audited financial statements should be a priority by the taxpayer, notwithstanding that the filing of amended tax returns has the effect of extending the three-year period within which the bureau is allowed to examine the books of the taxpayers,” the BIR said.