Wednesday, January 23, 2008

BIR eFPS Online Tax Payments System

There's an odd proposal from the Bureau of Internal Revenue (BIR) to encourage corporate taxpayers to return to paying taxes over the counter and away from the fast, online payment using Electronic Filing and Payment System (eFPS) by offering longer float periods for Authorized Agent Banks (AAB) from 4 days to 10 days for over the counter while for online payments was shortened to two days.

The partner banks didn't like the idea naturally, recommended allegedly by Ateneo de Manila University-led Economic Policy Reform and Advocacy (EPRA). Such move will slash partner bank's earnings with the float greatly misunderstood by the recommenders of the move. It's a known fact that over the counter transactions are costly to banks and thus encourage shifting to electronic channels via ATMs and Internet.

Should it ever push through, banks may give up being AABs due to the back-to the-middle-ages proposal. The only ones who'll benefit from the project are BIR personnel who may have lost face-to-face contacts with taxpayers who can offer something "under the table."

the eFiling and Payment System are already pushed for the top 10000 corporations in the Philippines where the bulk of the money is from. Imagine the long lines the shift to the old, full of bureaucratic red tape process will show.

Tothe BIR people, better think of more ways to enhance tax collection and not a return to jurassic mode of paying taxes.

1 comment:

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