Too little time for tax assessment, BIR told

Various business groups have called on the Bureau of Internal Revenue (BIR) to ease a recent government order that shortens the time for tax assessments on businesses, claiming that the rule may erode taxpayers’ right to due process.

The Tax Managers’ Association of the Philippines (TMAP) on Friday cited the BIR order issued late last year that banned early “informal conferences” between taxpayers, either business or individuals, and government examiners.

The BIR’s Revenue Regulation No. 18-2013 also requires tax examiners to complete their assessments within 15 days of finishing their preliminary assessments.

According to TMAP, half a month may not be enough time for taxpayers to present proper rebuttals, especially if complex issues are raised that require “voluminous” documents to counter. And even if a taxpayer were to submit a proper rebuttal, the group said 15 days would not be enough for examiners to go through all the evidence before making a fair ruling.

“If the issues are complicated—and this would require the submission of voluminous documents—that time is simply not enough,” TMAP internal vice-president Randy Bello said during a press conference. “And 15 days is not enough to go through those documents for them to consider all arguments.”

With the ban on “informal conferences,” where tax issues are first raised, taxpayers are given less time to counter the government assessments if needed.

Informal conferences normally take place before the BIR’s preliminary assessments.

TMAP said it was preparing a joint position paper with other business and industry groups to ask the Revenue department to amend the new rule, which was issued in November last year.

Other backers of the position paper include the Philippine Institute of Certified Public Accountants (PICPA), Integrated Bar of the Philippines (IBP), Philippine Chamber of Commerce and Industry (PCCI), American Chamber of Commerce (Amcham), and Financial Executives of the Philippines (FINEX).

Other possible supporters include the Makati Business Club and other foreign business chambers.