BIR's "No Audit Program" deadline reset to July 31

The Bureau of Internal Revenue has, for the second time this year, extended to July 31 the deadline for the submission of participation forms and other requirements from establishments that want to avail of the "No Audit Program," or NAP.

BIR Commissioner Jose Maria Buñag said the latest deadline, supposedly last June 30, has been moved to July 31 to enable more taxpayers to comply with the requirements for the program.

Revenue Regulations No. 6-2005 had first set the deadline last May 30, which is 30 days after the last day of the filing of the income tax return of the preceding taxable year.

But the BIR issued Revenue Regulations No. 7-2006 extending the May 30 deadline to June 30 because more establishments have requested for such, said Buñag.

The NAP has been enforced annually starting with the taxable year 2004 through 2008, and in Central Visayas alone, there are at least 50 establishments that have participated in the program since.

Under the NAP, taxpayers shall be exempted from audit and investigation of their income tax payments for the period for which they qualify, for as long as they voluntarily declare and pay higher taxable income than the previous year.

Delinquent taxpayers wishing to avoid charges of tax evasion could voluntarily raise tax remittances by 20 percent over the previous taxable year.

The new deadline will allow BIR to collect more taxes from delinquent taxpayers without incurring administrative costs of audit, investigation and filing of court cases.

However, a taxpayer should first qualify in one taxable year otherwise he shall be disqualified from further participating in the NAP in the subsequent years.

Establishments that are paying the minimum corporate income tax, and are either reporting a net loss or a net operating loss carry over are not qualified for NAP, according to the BIR. -Ferliza C. Contratista