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Manila asks BIR to waive penalties in P500-M tax debts

Manila Mayor Joseph Estrada has asked Commissioner Kim S. Jacinto-Henares of the Bureau of Internal Revenue (BIR) to waive the interests and other penalties in the settlement of the city’s  estimated P500 million tax debts.

Estrada made the request after making initial payment of P124 million last month to cover only the basic tax.

Manila Revenue Regional Director Araceli Franciso said the mayor and former President submitted the abatement request to the BIR chief because of the huge amount involved.

The BIR commissioner is authorized under the Tax Code to compromise delinquent accounts after investigating the financial capacity of the taxpayer concerned.

Estrada said the tax liabilities were part of the more than P3 billion debts he inherited from his predecessor including unpaid power and water bills.

It consisted mostly of unremitted withholding taxes due from the salaries of city workers starting in 2007.

Estrada promised to pay the balance next year when the City Council enacts the 2015 budget to include appropriation for the settlement of all outstanding financial obligations.

Meanwhile, Francisco disclosed that the Manila regional office raised more than P3.7 billion last month, bringing total collection for the first seven months of the year to P21.5 billion which was about P500 million higher than the actual collection for the same period.

She said the July take was P51 million higher compared to goal and P584 million more than the collection for the same month last year. (Jun Ramirez)

  • Avery_23

    The city has to pay taxes to the BIR?