REPUBLIC ACT NO. 7646 - AN ACT
AUTHORIZING THE COMMISSIONER OF INTERNAL REVENUE TO PRESCRIBE THE PLACE
FOR PAYMENT OF INTERNAL REVENUE TAXES BY LARGE TAXPAYERS, AMENDING FOR
THIS PURPOSE CERTAIN PROVISIONS OF THE NATIONAL INTERNAL REVENUE CODE,
AS AMENDED
Section 1. Paragraph (j) of Sec. 4 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:
"(j) The manner in which internal revenue taxes, such
as income tax including withholding tax, estate and donor's taxes,
value-added tax, other percentage taxes, excise taxes, and documentary
stamps taxes shall be paid through the collection officers of the
Bureau of Internal Revenue or through duly accredited banks which are
hereby deputized to receive payments of such taxes and the returns,
papers, and statements that may be filed by the taxpayers in connection
with the payment of the tax: provided, however, that, notwithstanding,
the other provisions of this Code prescribing the place of filing of
returns and payment of taxes, the Commissioner may by regulations
require that the tax returns, papers, and statements and taxes of large
taxpayers be filed and paid, respectively, through collections officers
or through duly accredited banks: provided, further, that the
Commissioner can exercise this power within six (6) days from the
approval of this Act or the completion of its comprehensive
computerization program, whichever comes earlier: provided, finally,
that separate venues for the Luzon, Visayas, and Mindanao areas may be
designated for the filing of tax returns and payment of taxes by said
large taxpayers.
"For purposes of this section, "large taxpayer" means a taxpayer who
satisfies any of the following criteria:
"(1) Value added tax (VAT) — Business establishment
with VAT paid or payable of at least One hundred thousand pesos for any
quarter of the preceding taxable year; t
"(2) Excise tax — Business establishment with excise
tax paid or payable of at least One million pesos for the preceding
taxable year;
"(3) Corporate income tax — Business establishment
with annual income tax paid or payable of at least One million pesos
for the preceding taxable year; and
"(4) Withholding tax — Business establishment with
withholding tax payment or remittance of at least One million pesos for
the preceding taxable year.
"Provided, however, that the Secretary of Finance, upon recommendation
of the Commissioner of Internal Revenue, may modify or add to the above
criteria for determining a large taxpayer after considering such
factors as inflation, volume of business, wage and employment levels,
and similar economic factors.
"The penalties prescribed under Sec. 248 of this Code shall be
imposed on any violation of the regulations issued by the Commissioner
of Internal Revenue prescribing the place of filing of returns and
payments of taxes by large taxpayers.
Sec. 2. Paragraph (b) of Sec. 5 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:
"(b) Receipts for payment made — It shall be the duty
of the Commissioner or his duly authorized representative or a duly
accredited bank to whom any payment of any taxes is made under the
provisions of this Code to acknowledge the payment of such tax,
expressing the amount paid and the particular account for which such
payment was made in a form and manner prescribed therefore by the
Commissioner.
Sec. 3. Sec. 204(1) of the National Internal
Revenue Code, as amended, is hereby further amended to read as follows:
"Sec. 204. Authority of the Commissioner to
compromise, abate, and refund/credit taxes. — The Commissioner may
"(1) Compromise the payment of any internal revenue
tax when —
"(a) A reasonable doubt as to the validity of the
claim against the taxpayer exists; or
"(b) The financial position of the taxpayer
demonstrates a clear inability to pay the assessed tax: provided,
however, that final assessments issued against large taxpayers as
defined under Sec. 4 of this Code shall not be compromised for less
than fifty percent (50%). Any such compromise involving said taxpayers
lower than fifty (50%) shall be subject to the approval of the
Secretary of Finance.
Sec. 4. The Secretary of Finance, upon
recommendation of the Commissioner of Internal Revenue, shall
promulgate the necessary rules and regulations for the effective
implementation of the provisions of this Act.
Sec. 5. All laws, decrees, orders, rules and
regulations, and other issuances inconsistent with this Act are hereby
repealed or amended accordingly.
Sec. 6. This Act shall take effect upon its
approval.
Approved: February 24,
1993
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