By Atty Josephrally L Chavez Jr.
Place of Filing of ITR
Except in cases where the Commissioner otherwise permits, the return shall be filed with the following: Authorized agent bank, revenue district officer, collection agent or duly authorized Treasurer of the city or municipality. And the venue of filing may either be at: Taxpayer’s legal residence, principal place of business in the Philippines, or, if there be no legal residence or place of business in the Philippines, with the Office of the Commissioner. [Sec. 51(B), NIRC]
Modes of Payments to Authorized Agent Banks
Aside from the electronic payment system currently used by some taxpayers in paying their BIR taxes, the rest shall pay their tax liabilities through any of the following modes: Over-the-counter cash payment; bank debit system and checks.
In the issuance and accomplishment of checks for the payment of internal revenue taxes, the taxpayer shall indicate the space provided for “pay to the order of” the following data: Presenting/collecting bank or the bank where the payment is to be coursed; and, FAO (For the Account Of) Bureau of Internal Revenue as payee; and, under the “Account Name” the taxpayer identification number (TIN) [Sec. 3, RR 16-2002]
Disallowed Checks for Tax Payments
The following checks are not acceptable as check payments for internal revenue taxes: Accommodation checks, second endorsed checks, stale checks, postdated checks, unsigned checks and, checks with alteration or erasures.
Likewise, the BIR mandates the AABs accepting checks for the payment of taxes and other charges to see to it that the check covers one tax type for one return period only. Moreover, AABs must strictly comply with the system and procedures for the reception, processing, clearing and accounting of the checks prescribed under a separate regulation. Second indorsement of checks which are payable to the BIR or CIR is absolutely prohibited.
Note that taxpayers are not required to enroll with any AAB where they intend to file tax returns/payment forms and/or pay internal revenue taxes. Taxpayers may file tax returns/payment forms and pay internal revenue taxes with any AAB of the appropriate BIR office (RDO), (LTDO), or LTS, etc., whichever is applicable, where they are required to file the particular return/payment form. [RR 16-2002] For detailed discussion, see the Book of Atty. JLChavez, Jr., on Income Taxation Illustrated and Simplified Volume I, 2019 Edition.
But in this time of COVID-19, the BIR under RMC No. 43-2020 (dated 15 April 2020), provides that in order to ease for concerned taxpayers in their filing of returns and payment of taxes due during Enhanced Community Quarantine, the taxpayers may file the tax return and pay the internal revenue tax during such period: (1) At the nearest Authorized Agent Banks (AABs), notwithstanding RDO jurisdiction or, (2) file and pay the corresponding tax due thereon to the concerned Revenue Collection Officers (RCOs of the nearest Revenue District Office (RDO), even in areas where there are AABs.
However, payment of internal revenue taxes in cash should not exceed P20,000, while those for check payment will have no limitation if the same is made with the RCO in the district office during the ECQ period. Also, all checks shall be made payable to the Bureau of Internal Revenue (with or without “IFO Name and TIN of the Taxpayer” written on the check as previously required) and that the name of the receiving AAB Branch may no longer be indicated in the check for tax payment.
Noteworthy, under RMC 48-2020 which was issued by the BIR on 22 May 2020, the Circular extends until 14 June 2020 the leniency of filing of returns and payment of taxes under RMC 43-2020, and to include payment of Amnesty Tax.
SIMPLY PUT, the strict rules on the place of payment, or the territorial jurisdiction for payment of internal revenue taxes are relaxed under the aforementioned circular. Otherwise, the taxpayers can be held guilty of wrong venue filing or filing of tax returns at a different RDO than they were duly registered. And will be subjected to a penalty of P1,000 per return and 25% surcharge of the tax due paid. [RR 5-2015, BIR OM No. 2016-04-01, dated 13 April 2016] Note: This article is enthused by my big brother – The Boss/Atty.RT