BIR says bank deposits not included in listing of taxpayers’ assets

The Bureau of Internal Revenue (BIR) said today the instruction to revenue regional directors and other tax enforcement officials to list down all assets of individuals and businesses did not include bank deposits

The Bureau of Internal Revenue (BIR) said today the instruction to revenue regional directors and other tax enforcement officials to list down all assets of individuals and businesses did not include bank deposits.

BIR Deputy Commissioner for Operations Arnel Guballa issued the clarification as the agency finally implemented the old Revenue Memorandum Order (RMO) 26-2010 which was questioned by lawyers and accountants as violation of the bank secrecy law.

The RMO signed by then BIR Commissioner Joel Tan-Torres included the listing of the name of the taxpayer’s depository bank, the amount and account number including foreign currency.

Guballa explained the RMO has been modified to exclude bank deposits, stressing the secrecy of bank deposits which was even affirmed when Congress approved the Tax Reform for Acceleration and Inclusion Law.

However, Guballa said they will continue to issue warrant of garnishment on the bank accounts of delinquent taxpayer when the assessment becomes final and executory.

He explained the listing of assets is necessary to speed up the collection of back accounts in instances that a business collapses, or the taxpayer had gone abroad or died.

This way, Guballa said tax collection officers can easily collect tax debts when such information is readily available.

Records showed delinquent accounts have been piling up through the years involving tens of billions of pesos as many delinquent taxpayers can no longer be located.
 
source:  Manila Bulletin By Jun Ramirez