Question & AnswerQ&A (Republic Act No. 7646)
Republic Act No. 7646 authorizes the Commissioner of Internal Revenue to prescribe the place for payment of internal revenue taxes by large taxpayers and amends certain provisions of the National Internal Revenue Code to this effect.
A large taxpayer is defined as a business establishment that meets any of the following criteria: (1) VAT paid or payable of at least P100,000 in any quarter of the preceding taxable year; (2) Excise tax paid or payable of at least P1,000,000 for the preceding taxable year; (3) Corporate income tax paid or payable of at least P1,000,000 for the preceding taxable year; and (4) Withholding tax payment or remittance of at least P1,000,000 for the preceding taxable year.
Yes, the Secretary of Finance may, upon the recommendation of the Commissioner of Internal Revenue, modify or add to the criteria for determining a large taxpayer considering factors like inflation, volume of business, wage and employment levels, and similar economic factors.
The Commissioner can exercise this power within six years from the approval of the Act or the completion of its comprehensive computerization program, whichever comes earlier.
Yes, the Commissioner may designate separate venues for the Luzon, Visayas, and Mindanao areas for the filing of tax returns and payment of taxes by large taxpayers.
Penalties prescribed under Section 248 of the National Internal Revenue Code shall be imposed on any violation of the regulation issued by the Commissioner prescribing the place of filing of returns and payment of taxes by large taxpayers.
It is the duty of the Commissioner, his authorized representatives, or duly accredited banks to acknowledge the payment of taxes by issuing receipts expressing the amount paid and the particular tax account.
The Commissioner may compromise the payment of internal revenue taxes when there is a reasonable doubt as to the validity of the claim against the taxpayer or when the financial position of the taxpayer demonstrates a clear inability to pay the assessed tax.
Yes, final assessments against large taxpayers shall not be compromised for less than 50%. Any compromise lower than 50% requires the approval of the Secretary of Finance.
The Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, is responsible for promulgating the necessary rules and regulations for the effective implementation of the Act.