Revenue agency eases tax filing for gov’t workers

MANILA, Philippines—The Bureau of Internal Revenue has allowed some government officials and employees to file their income tax returns with revenue district offices (RDOs) other than those where they are registered.

The BIR issued Revenue Memorandum Order No. 15-2011, which gives leeway to some members of the armed force and police services as well as government educators in relation to the general ban on so-called “out-of-district” ITR filing.

Dated March 17, the order explains that the leeway is given to government personnel who, due to the nature of their work, need to be away from the RDO where they are registered.

The BIR said qualified taxpayers need to present their identification papers or other proofs that they belong to the armed forces or the national police, or that they are public school teachers, professors and instructors.

Also, such leeway is allowed only on April 15.

“No penalties or sanctions shall be imposed [on qualified] taxpayers for filing ITR for 2010 and paying tax due thereon at the wrong venue,” the BIR said.

“No penalties or sanctions shall likewise be imposed on the AABs [authorized agent banks] and RCOs [revenue collection officers] for accepting [out-of-district ITRs],” the bureau added.

Based on Revenue Regulation No. 13-2010, out-of-district returns are deemed “fraudulent or spurious” and the chiefs of the BIR unit that accepted such ITRs—as well as other concerned BIR employees—face disciplinary action such as suspension or dismissal.

In a related regulation, the BIR clarified that vacation and leave credits that government officials and employees did not use and were converted to cash are the only leave credits exempt from the income tax and fringe benefit tax.

Internal Revenue Commissioner Kim S. Henares said in an interview that the BIR issued Revenue Regulation No. 5-2011, dated March 16, to clarify that not all unused and monetized leave credits are exempt from taxes.—Ronnel W. Domingo