Tax appeals court stops BIR
GARNISHMENT OF PANELCO ASSETS
URDANETA CITY— The officials of Pangasinan Electric Cooperative III (Panelco III) heaved a sigh of relief after the Court of Tax Appeals (CTA) issued a temporary restraining order (TRO) against the Bureau of Internal Revenue (BIR) and stopped the scheduled garnishment of the properties of its assets last December 23 of last year.
Lawyer Nasrollah Conding, revenue district officer of District Office 6 (RDO6) said the TRO was received by his office a few days after BIR Commissioner Kim Henares left after a short visit to the province that was met by protests.
Conding said the scheduled garnishment of properties of Panelco III was due to its unpaid P400 million in taxes due the BIR from 2009 to 2010.
He pointed out that the unpaid amount of taxes due from Panelco III were determined from their assessment of the cooperative’s 2009 record amounting to P145 million unpaid taxes and P255 million in 2010.
“There will be hearings and deliberation of the case before the CTA, after which we will act in accordance to its decision later on”, said Conding.
INCREASED COLLECTION
Meanwhile, Conding admitted that while his office failed to reach its target collection in 2014 due to the decreased collection on tax remittance advice (TRA), a tax applied to government projects such as roads, infrastructures among others, he said RDO6 increased its collection by 5.79% compared to last year’s collection.
It collected P1.082 billion in 2014, compared to 2013’s P1.023 million collection.
Sixty-two per cent of the collection was derived from income taxes amounting to P678.9 million. The rest were from Value Added Taxes (VAT) P264.55 million.
“We lost more than P52 million or 15.07% of collection from TRA since the new rule dictates that taxes of government projects with more than P50 million budget are now remitted to the regional offices of BIR and not to district offices”, said Conding.
Conding pointed out that the increased collection of RDO6 will result in bigger internal revenue allotment (IRA) for local government units. (Hilda Austria/PNA)
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