Final reminders to last minute filers

Today is the last day for filing of income tax returns. Those who have already filed their returns and paid their taxes to avoid the rush may very well relax and take pride that they have again contributed and fulfilled their yearly obligation to the country. For those who opted to beat the deadline and meet the usual rush head-on, take comfort in the altruistic feeling that in braving the long queues under the summer heat, you are doing your country great service. Take caution though, rushing in to beat the deadline may cause neglect of some details that may result to penalties and inconveniences. Here are some reminders for the last minute filers:    

• Note that two or more manager’s checks and/or a combination of cash and check/s may be accepted in payment for a single tax liability as long as the checks are in accordance with existing regulations. In the issuance of manager’s checks, the taxpayer must indicate in the space provided for “PAY TO ORDER OF” the following: (1) presenting/collecting bank or the bank where the payment is to be made and (2) FAO (For the Account Of) Bureau of Internal Revenue as payee; and under the “ACCOUNT NAME” the taxpayer identification number (TIN).

• All Authorized Agent Banks (AABs) of the BIR shall receive the Income Tax Returns (ITRs) by stamping the official receiving seal in the three (3) copies of the returns. Any copy in excess of the three copies shall not be stamped “Received” by the AAB.  However, in the case of corporations and other juridical persons, there shall be two additional copies of the audited financial statements for filing with the Securities and Exchange Commission (SEC). On the other hand, all AABs under physical jurisdiction of Revenue Region (RR) Nos. 2 (CAR), 5 (Caloocan City), 7 (Quezon City) and 9 (San Pablo City) shall receive and stamp only two copies of the (ITRs). The original copy thereof shall be the BIR/RDO’s copy, while the duplicate is the taxpayer’s copy.

• The attached financial statements to the ITR shall be stamped received only on the page of the Audit Certificate, the Balance Sheet and the Income Statement. All other pages of the financial statements and its attachments are not required to be stamped received.

• Make sure that before you leave the AAB the ITR and/or deposit slips are machine-validated and the details of tax payments are clearly imprinted in all the copies.

• Photocopied or electronic/computer-generated ITRs shall be accepted by all AABs, in lieu of the officially printed forms. However, make sure that the forms are originally filled out and signed by the taxpayer or his/her duly authorized representative. Otherwise, the forms will not be accepted.

• Be sure that the ITR is printed in polio size bond paper (8.5”x 13”). The paper orientation must be portrait and page set up margins shall be left: 0.146, right: 0.148, top: 0.14, bottom: 0.14 inches. Please note that the ITR is intended to be readable by optical scanners. Thus, it is very important to follow the prescribed lay-out. Otherwise, the ITR will not be read by the scanners and consequently rejected.

• Banking hours for all AABs are extended up to 5:00 PM. All AABs shall not refuse to accept tax payments from taxpayers who are already within the banks premises by the close of the said extended banking hours.

• No need to worry about AAB’s cut-off/clearing time. Check payments made by the taxpayer after the AAB’s cut-off/ clearing time must be accepted by the AAB.

The filing of the annual ITRs (BIR Form Nos. 1700 and 1701) as well as the payment of taxes due thereon anywhere of the following government officials and employees shall no longer be allowed:

a. Members of the Armed Forces of the Philippines (AFP);

b. Members of the Philippine National Police (PNP); and

c. Public school teachers/professors/instructors

Taxes are the life blood of our government. As responsible citizens we are all enjoined to do our share by paying our taxes. This is not only for us, but for our posterity as well. 

Benedict Vincent L. Ines is an assistant manager from the tax group of R.G. Manabat & Co. (RGM&Co.), the Philippine member firm of KPMG International.

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity.

The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG International or RGM&Co. For comments or inquiries, please email [email protected] or [email protected].

For more information on KPMG in the Philippines, you may visit www.kpmg.com.ph.