The House of Representatives is targeting to draft a resolution by year-end to define how the Bureau of Internal Revenue (BIR) issues orders or circulars on taxes to maintain the stability of the business environment.
The House Oversight committee has been receiving numerous complaints from the business sector on the new revenue circulars issued by the BIR, Marikina Representative Miro Quimbo, told reporters on the sidelines of Makati Business Club's general membership meeting in Makati City on Monday.
Among the complaints raised are the issues on value-added taxes (VAT) refunds, he said.
"There's a pending House resolution on reviewing the power of BIR on issuing [Revenue Memorandum Circulars]," said Quimbo, who chairs the House ways and means committee.
"We want to pass a resolution by year-end," he added.
In June, the BIR issued Revenue Memorandum Circular
(RMC) No. 54-2014 which is intended to clarify the application for VAT refund.
Under the memo circular, the BIR commissioner has 120 days from the date of submission of complete documents to decide whether to grant the claim for refund or issuance of Tax Credit Certificate for creditable input taxes.
But if the VAT refund claim or credit is not acted upon within the 120-day, such “inaction shall be deemed a denial” of the application for tax refund or credit.”
'Fix the ground rules'
Reports said the Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCIPI) branded the BIR memo as unfair and a very serious issue.
The European Chamber of Commerce of the Philippines (ECCP) also slammed the BIR move to make it difficult for tax-paying investors to apply for a refund.
The House resolution on VAT refund will lay down the ground rules which the BIR must follow, Quimbo said.
"The BIR doesn't need to consult the Congress every time, but we need to fix the ground rules on how RMCs are issued," he said.
"We want to check whether the legislative intent is being followed and we want to prevent rules being changed in the middle of the ball game," the legislator added.
While there's a proposed bill for the issue, Quimbo noted that it may not be necessary since it is "already written in our judicial books."
"I think this is something that can be cured by Congress performing its oversight functions. Will it lead to a bill? We'll see," he noted. – VS,GMA News
