DEC.

6, 2011 DATE

NR # 2609C
REF. NO.

Secretary Purisima to revise controversial revenue circular on supplemental income for taxpayers
Finance Secretary Cesar Purisima today assured lawmakers that he would immediately prepare a draft revenue regulation that will address the solons concerns and input their proposed corrections to Revenue Memorandum Circular 57-2011 issued recently by Internal Revenue Commissioner Kim Jacinto-Henares which makes the disclosure of Supplemental Information optional for taxpayers. Purisima gave the assurance to members of the House committee on ways and means which has been inquiring on the legal basis of the original RMC 40-2011 relating to the use of revised BIR Forms 1700, 1701 and 1702 requiring the disclosure of additional detailed income. The solons have criticized RMC 40-2011 as illegal, unconstitutional and violative of the Bank Secrecy Law. On Nov. 25, 2011, Henares revoked RMC 40-2011 and issued RMC 57-2011 which makes the disclosure of Supplemental Information optional for income tax filing covering and starting with calendar 2011, but makes it mandatory for income tax filing covering calendar 2012. Ill be issuing a revenue regulation addressing the concerns of the committee and the legal issues of the revenue memorandum circular. I nor Commissioner Henares, nor my team, nor the administration of President Aquino have no desire to make it difficult on the part of taxpayers. We have no intention to violate the Constitution or the law, said Purisima. The DOF chief said he will immediately issue a revenue regulation to formalize the suggestions of lawmakers and so that everyone will have clarity on the matter at hand He said the DOF and the BIR only wanted to collect from a sector of taxpayers which has been inhibiting government in giving services to the people. We will consult you to address your concerns. We are open to suggestions. We want to do our mandate to collect the right taxes, and we look up to Congress to do this in a better way, said Purisima. Rep. Luis Villafuerte (3rd District, Camarines Sur) suggested that a technical working group composed of representatives of the DOF, BIR and the House committee on ways and means to draft a revised revenue regulation so that all issues found objectionable by the solons will be threshed out. Rep. Hermilando Mandanas (2nd District, Batangas), committee chairman, named Rep. Giorgidi Aggabao (4th District, Isabela) as head of the House contingent to meet with Purisima tomorrow morning to help in drafting the revised revenue regulation. Aggabao said they will convey their sentiment to Purisima that hopefully the revenue circular issue will be clarified because of its adverse impact on taxpayers. Rep. Tomas Apacible (1st District, Batangas) lauded Purisima for his flexible stance, as he urged the DOF to demonstrate prudent spending by not anymore printing new BIR forms since the filing of supplemental information will just be optional on the part of taxpayers. The DOF should be the icon of prudent spending. Do we have the luxury of money to print new forms, said Apacible. Henares said the BIR will be printing 3 million sets of the BIR forms which will cost the government about P16 million. (30) rbb