Ecozone locators to use electronic tax payment scheme

Economic zone locators and those given perks by investment promotion agencies have been included in the list of taxpayers required to use the Bureau of Internal Revenue's (BIR) electronic filing and payment system. Under Revenue Regulations (RR) 1-2010 issued last Jan. 21, companies in economic zones and enterprises enjoying fiscal incentives given by various state agencies now have to file returns and pay taxes through the electronic system. These include investors registered with the Philippine Economic Zone Authority, Board of Investments, Subic Special Economic Zone, Clark Special Economic Zone, Clark Freeport Zone, Poro Point Freeport Zone, Morong Special Economic Zone, John Hay Special Economic Zone, Cagayan Special Economic Zone Authority, Export Development Council, Tourism Infrastructure and Enterprise Zone Authority and the PHIVIDEC Industrial Authority. Marina C. de Guzman, chief of staff of BIR Commissioner Joel L. Tan-Torres, said the regulation would allow the bureau to monitor foregone revenues arising from various fiscal incentives, while sparing investors from long queues to pay their tax dues. "The revenue regulation will enhance our monitoring. It will also make it easier for us to determine the revenue losses," she said, adding that since the payment is made electronically they could immediately access the data. "This will also improve our service to taxpayers. They no longer need to fall in line to file returns and pay the taxes," she added. De Guzman said there are ecozone locators who have been using the system. The new rule, however, intends to add all of them to the electronic system. Instructions on how to enroll will soon be issued by the tax bureau, she added. The BIR launched the electronic filing and payment system in 2001 to simplify tax payment and improve compliance. Originally, only large taxpayers or those with a net worth of at least P300 million, insurance companies and banks, were required to use the system. Last year the BIR expanded its list to include other taxpayers belonging to top 20,000 private corporations. Latest BIR data showed that close to 30,000 firms were enrolled in the electronic system. Tan-Torres has said one of his priorities this year would be to monitor tax perks granted under taxpayer-friendly laws and various government incentive programs. Last week the BIR announced that it had formed a committee that would oversee the grant of incentives and their impact on the performance of revenue officials. The BIR, which accounts for three-quarters of state tax revenues, missed its 2009 goal by over P53 billion, collecting P745.26 billion against a target of P798.45 billion. It must collect P830 billion this year. — Alexis Doulgas B. Romero, BusinessWorld