By Harold S. Ocampo, 11 April 2013
The deadline for filing the annual income tax return (ITR) is just around the corner, as they say.
Individual taxpayers and non-individual taxpayers adopting the calendar year accounting period are required to file their ITR not later than April 15, 2013.
By now, most taxpayers have already filed or are in the process of finalizing their annual ITR for eventual filing.
As a reminder to taxpayers and to ensure that the annual ITR is filed properly, the Bureau of Internal Revenue (BIR) issued on March 15 Revenue Memorandum Circular (RMC) No. 27-2013, which prescribes the additional attachment to the regular itemized deductions of the ITR as well as some filing guidelines.Basically, the additional attachment is a detailed schedule of the itemized deductions. Samples of the additional attachments are provided in RMC 27-2013.
Hereunder is a brief discussion on the guidelines and additional attachments to the annual ITR (November 2011 ENCS version) as discussed under RMC No. 27-2013.
Non-eFPS TAXPAYERS -- Printed in folio-size bond paper (8.5”x13”), landscape orientation/layout signed by the taxpayer/authorized officers/representatives to be filed manually as follows:
eFPS TAXPAYERS -- BIR Form Nos. 1700 and 1701 to be filed in the BIR’s eFPS facility.
Experience would tell us that preparing and filing the ITR is no “walk in the park.” The April 15 deadline has even made the process more burdensome due to the “last minute filing rush.” At times, taxpayers would miss the deadline or submit an incomplete tax return, which they will end up amending long after the April 15 deadline has passed.Taxpayers should seriously consider the importance of filing the tax return on time. As a reminder, failure to file the tax return and/or pay the correct taxes on time will result in the imposition by the tax authority of the 25% surcharge, 20% annual interest and compromise penalty as well as possible criminal liabilities in appropriate cases.With the additional MANDATORY ATTACHMENT mentioned above and the possible pecuniary (civil) and criminal liabilities for late filing of tax returns, NOW is the best time for taxpayers to exert extra effort and time in completing the tax return for eventual timely filing. To address the commotion and pressure of the “last minute filing rush,” taxpayers should consider and are encouraged to file their tax returns early.
The author is a director at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.
Views or opinions presented in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The firm will not accept any liability arising from such article; the author will be personally liable for any consequent damages or other liabilities.