Six major business organizations have backed moves of the House Committee on Ways and Means calling for the withdrawal of the controversial Bureau of Internal Revenue’s Memorandum Circular 40-2011, a press release from Congress said.
The circular, issued on September 5 by the BIR, requires the disclosure of additional detailed income information of taxpayers.
In a joint position paper submitted to the House Committee on Ways and Means, the groups conveyed their concern on RMC 40-2011 which requires the submission of a Supplemental Information Return as part of the annual income tax returns of taxpayers.
Among the organizations that joined the paper are the Philippine Chamber of Commerce and Industry, Tax Management Association of the Philippines, and the Management Association of the Philippines, the press release said.
The Employers Confederation of the Philippines, Philippine Exporters Confederation, Inc., and Financial Executives Institute of the Philippines also backed the position paper, it added.
The committee, chaired by Rep. Hermilando Mandanas (Batangas, 2nd District), has been conducting hearings on RMC 40-2011 on the basis of a letter of Rep. Magtanggol Gunigundo (Valenzuela City, 2nd District) dated October 21.
The letter said there is no legal basis for RMC 40-2011 to stand since law is needed to carry out what the BIR wants under this new memorandum circular, the press release said.
Gunigundo said RMC 40-2011 basically implements the Annual Information Return that mandates list up of passive income of taxpayers under Revenue Regulations 2-2011 that was already suspended last March by Finance Secretary Cesar Purisima, through the efforts of the House Committee on Ways and Means, by Revenue Regulation 6-2011.
The joint position paper was signed by PCCI president Francis Chua, TMAP president Agnes Le. Casabar Oxales, MAP president Felino Palafox Jr., ECOP president Edgardo Lacson, PHILEXPORT president Sergio Ortiz-Luis Jr., and FINEX president Ronnie Alcantara, the press release said.
The paper noted that one of the attractions for choosing investments with tax free or net of tax yields is the exemption from the hassle of accounting for and reporting of income received from such investments, the press release said.*