BIR extends filing deadline under ECQ

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has extended the deadline for the filing of tax papers on audit investigations, and stopped the clock for the issuance of court assessments in line with the revert to lockdown in multiple areas.

The BIR yesterday released a memorandum circular prolonging the cutoff for the submission of documents related to ongoing audits and value-added tax (VAT) refund in areas placed under enhanced community quarantine and modified ECQ.

The BIR said it decided to extend the deadline for filing tax papers to provide relief to taxpayers whose movement may be restricted due to the tightening of quarantine restrictions, especially in Metro Manila.

Taxpayers who need to lodge a position paper against a notice of discrepancy; protest letter in response to a final assessment notice; transmittal letter for a request for a reinvestigation and request for reconsideration on a final decision on disputed assessment are given 30 days from the lifting of ECQ or MECQ to do so.

Also, filing for similar letters and correspondences, as well as VAT refund, are granted the same extension. On the other hand, taxpayers who asked to file a reply to a preliminary assessment notice and documents in response to a subpoena duces tecum are provided with 15 days from the easing of lockdown to comply.

On the other hand, submission of documents in relation to first, second and final notice must be done 10 days from the downgrade from ECQ or MECQ.

The BIR also deferred any face-to-face meetings with its officials and employees in areas under ECQ or MECQ, and rescheduled such appointments until lockdown declarations are removed.

In another memorandum circular, the BIR also suspended running the statute of limitations for assessment and collection of deficiency taxes in areas covered by ECQ and MECQ, and for 60 days thereafter.

According to the BIR, the suspension applies to assessment notices, warrants and enforcement and collection of deficiency taxes. The statute of limitations sets the maximum timeframe during which a legal proceeding can be initiated against a suspected criminal.

The BIR last week extended for 15 calendar days the filing of returns and payment of taxes in ECQ and MECQ areas. With the relief, taxpayers who need to fulfill their obligations can do so 15 days after the lockdown is lifted on Aug. 20.

The BIR, the government’s lead tax collector, plans to collect P2.08 trillion this year to boost the war chest in managing the pandemic.

Finance Secretary Carlos Dominguez III himself said the BIR must attain, if not beat, its revenue target for 2021 for the economy to even secure a chance at sustaining its recovery efforts and paying off debts.