BIR EASES RULES ON TAX CREDIT CLAIMS
MANILA, AUGUST 7, 2007 (STAR) By Iris C. Gonzales - The Bureau of Internal Revenue (BIR) has relaxed its rules governing tax credit claims or refund through a new revenue memorandum circular.
According to memorandum circular No. 51-2007, claims for cash or tax credit certificates for cases above P10 million shall be processed by the Office of Deputy Commissioner for Operations for approval.
Prior to the new regulation, claims for cash or tax credit certificates exceeding P10 million must go through the office of former BIR commissioner Mario Buñag for final approval.
According to the revised rules, all cases with claims exceeding P10 million must be recommended and signed by the agency’s assistant commissioner for assessment service.
If legal questions or questions of law arise, the revenue officer assigned to the case shall request for a legal opinion on the issues raised.
Furthermore, according to the new rules, claims for cash refunds and tax credit certificates amounting to P10 million and below shall be reviewed and approved by the agency’s assistant commissioner for the large taxpayers service.
For claims or cases of more than P1 million but not exceeding P10 million, these shall be filed and processed in the revenue district office having jurisdiction over the claimant, the BIR also said.
The review shall be done in the revenue region and shall be forwarded to the assessment service.
The agency also revised rules for value-added tax (VAT) claims filed in the one-stop-shop center of the Department of Finance (DOF).
Claims amounting to P10 million and below shall be approved by the BIR’s assessment service group while claims exceeding P10 million shall be reviewed and recommended by the agency’s assistant commissioner for assessment to the deputy commission for operations, for final approval.
BIR officer-in-charge Lilian Hefti issued the new regulation after the agency received numerous complaints on the previous process which was implemented during the time of Buñag.
Buñag imposed stricter rules to prevent a repeat of the scam that occurred from 1995 to 1998 wherein 1,652 tax credit certificates worth P5.3 billion were illegally and fraudulently issued to 64 private companies.
Chief News Editor: Sol Jose Vanzi
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