BIR not extending tax filing deadline

MANILA, Philippines — The Bureau of Internal Revenue (BIR) will no longer extend the deadline for the filing of annual income tax returns (AITR), but will allow taxpayers to make changes to their documents until May 16.

“The BIR has not extended the April 18, 2022 deadline for the filing of annual income tax returns and payment of corresponding taxes for 2021,” the BIR said in an advisory.

Historically, taxpayers have until April 15 every year to submit their AITR, but the BIR extended the deadline to April 18 this year due to the Holy Week holidays.

In spite of this, the BIR said it allowed taxpayers to file their tentative AITR until April 18. In turn, Filipinos who submitted their tentative AITR can amend them until May 16, 2022, without getting slapped with any interest, surcharge and penalties.

The BIR permitted the filing of tentative AITRs through the issuance of Revenue Memorandum Circular 42-2022. The agency authorized taxpayers to file tentative AITRs to mitigate challenges in beating the deadline that fell right after a holiday stretch.

Also, the BIR said it understands that some taxpayers are adjusting to the hybrid working setup instituted by firms now that quarantine restrictions are lifted.

The BIR reminded taxpayers that they can file for refund in the event that their amended AITRs result in the overpayment of taxes.

“(A) taxpayer whose amended returns will result in overpayment of taxes paid can opt to carry over the overpaid tax against the tax due for the same tax type in the succeeding period or file for refund,” the memorandum circular read.

Under the memorandum circular, the BIR also reminded taxpayers that additional attachments asked by the agency must be filed on or before May 31, 2022. They can submit their documents to the revenue district office where they are registered or through the electronic audited financial statements system of the BIR.

The BIR usually records its highest collection figures during April due to the filing of AITRs and the payment of taxes. Failure to pay taxes on time bear the imposition of surcharge amounting to 25 percent of the amount due and an interest equivalent to 20 percent per annum.

For the year, the BIR looks to raise for the government a sum of P2.43 trillion, the bulk of which at P1.25 trillion will come from taxes on net income and profits.

The BIR grew its collection total by close to seven percent to P2.08 trillion last year, from P1.95 trillion in 2020, as firms returned to their usual activities with the reopening of the economy.

File raps vs Marcoses

Prominent speakers in the webinar “God Knows Who Does Not Pay: The P203 billion Estate Tax Liability of the Marcoses” held yesterday, renewed calls for the BIR to file criminal charges against the Marcoses for their “willful failure” to pay their estate tax liabilities.

Retired Supreme Court associate justice Antonio Carpio said, “It is clear as day, beyond any shadow of doubt, that the estate tax assessment of the Marcos estate in the principal amount of P23.3 billion had long become final and executory and unappealable as of December 1991 when the Marcoses failed to protest the assessment within 30 days of receipt of assessment. That was 29 years ago. The decision of the Supreme Court affirming this estate tax assessment became final and executory on March 9, 1999 or almost 25 years ago.”

Carpio further said that “Imelda Marcos and Marcos Jr. can be charged by the BIR and the DOJ (Department of Justice) under Section 255 of the Tax Code for willful refusal to pay the tax, and their refusal to pay the estate tax is willful, because almost a quarter of a century has passed since the decision on the estate tax case was declared final and executory by the Supreme Court.”

Carpio was joined in the webinar by former tourism secretary Narzalina Lim, who spearheaded an online petition calling on BIR Commissioner Cesar Dulay to file a criminal case against presidential aspirant Ferdinand Marcos Jr. for failing to file their family’s estate tax liabilities which has now ballooned to more than P203 billion. The online petition has garnered around 22,000 signatures as of March 29, 2022.

“We requested for an appointment – it fell on deaf ears. Dedma talaga ang BIR (the BIR is ignoring this), and so we printed a hard copy of the petition and one of our members brought it to BIR… and it was received on March 30. We have a copy that BIR received that petition. Now, what is interesting about the petition are the comments made by the signatories. Many of them feel very cheated because they are taxpayers who faithfully paid their taxes yearly, year in and year out, and today is the deadline again for filing our taxes… and they paid while this family, the Marcoses, are handled with kid gloves and it has been 25 years, maybe 29, and nothing has been collected,” Lim claimed.

Asked what citizens can do in relation to the estate tax liability issue of the Marcoses, Carpio commented: “The citizens have the power in their hands by not electing Bongbong Marcos. We have the power to stop him because if he becomes president, he will allow this right of the State to collect to lapse to prescribe, so it is in our hands to stop him by not voting for him... Second, we can file a case against the BIR officials because there is a provision in the Tax Code that if the BIR officials, in case they are negligent in doing their duty, and that negligence allows somebody to violate the law.” – Artemio Dumlao