Tax Management Association of the Philippines (TMAP) internal vice president Randy Bello said in a press conference yesterday that legal action is among the options being considered by business groups to ask the Bureau of Internal Revenue (BIR) to withdraw Revenue Memorandum Circular (RMC) No. 54-2014, which sets rules on the filing and processing of VAT refunds.
“Legal option is being considered, but the groups have not come up with a collective decision,” he said.
European Chamber of Commerce of the Philippines (ECCP) vice president for external affairs Henry Schumacher said that for now, the business groups want to engage the BIR in a dialogue on the matter.
“We don’t want a fight. What we want to see is constructive dialogue,” he said. In a joint statement issued during the event, the TMAP, ECCP and other business groups such as the Japanese Chamber of Commerce and Industry of the Philippines Inc., American Chamber of Commerce of the Philippines, Philippine Association of Multinational Companies Regional Headquarters, Inc., Canadian Chamber of Commerce of the Philippines, Korean Chamber of Commerce of the Philippines,
Australian-New Zealand Chamber of Commerce of the Philippines, Philippine Exporters Confederation, Inc., Pilipino Banana Growers and Exporters Association, Philippine Coconut Oil Producers Association, United Coconut Associations of the Philippines, Philippine Chamber of Commerce and Industry, Information Technology and Business Process Association of the Philippines, Philippine Independent Power Producers Association, Employers Confederation of the Philippines, Chamber of Mines of the Philippines, Management Association of the Philippines, Financial Executives of the Philippines and Association of Certified Public Accountants in Public Practice said they want the government to “withdraw RMC 54-2014 and uphold the taxpayer’s right to an administrative appeal.”
Under the RMC, which applies to all pending claims for VAT refunds, the BIR would have a period of 120 days to decide whether to grant or deny an application.
If no action is taken by the BIR within the 120-day period, it would be deemed a denial of the application.
In case of full or partial denial of the claim for tax refund, the RMC states that the affected taxpayer could file an appeal in two ways: file the petition with the Court of Tax Appeals (CTA) within 30 days from the receipt of BIR decision or file the claim within 30 days from the expiration of the 120-day period, if no action is taken by the BIR. As an incentive to investors, firms could claim refunds from the government for the advanced VAT payments made for imports of items used for goods they will export.
Previously, taxpayers may elevate the claim to the CTA after the 120+30 day period or continue to wait for the BIR’s final decision before elevating the claim to the CTA.
Source: Philippine Star
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