8box Solutions Inc.


Contact Number: 09369340340
Email: sales@8box.solutions

REVENUE REGULATIONS NO. 2-2008 issued on February 29, 2008 amends certain rules and regulations relative to the collection and remittance of taxes paid to Authorized Agent Banks (AABs) thr u Over-the -Counter (OTC) and Electronic Filing and Payment System (EFPS) and further amends the Memorandum of Agreement (MOA) relative to the accreditation of the AABs. These Regulations cover OTC and EFPS payments in order to rationalize the granting of incentives to AABs and the imposition of penalties to effectively utilize and maximize the banking system in receiving internal revenue tax payments. All banks presently authorized to collect internal revenue taxes may continue to do so until such time that a new MOA is executed among the Bureau of Internal Revenue (BIR), Bureau of Treasury (BTr) and the banks which have qualified for accreditation. Considering that the incentive given to AABs is in the form of “float period” (the period beginning on the day after the date of collection until the prescribed remittance day), the following guidelines shall be strictly followed: a. The determination of float period shall be done semi-annually based on the number of OTC transactions processed/accepted by the AABs on the same semester of the preceding year, and compliance with the obligations and conditions stated in the MOA. The notice shall be sent semi-annually (i.e. for the first semester, notice will be sent on or before December of the previous year; likewise, for the second semester, notice will be sent on or before June of the current year). The EFPS float period shall be dependent on the OTC float period. The higher the number of OTC transactions processed/accepted, the longer the float period of an AAB. The OTC float period shall be six (6), eight (8) or ten (10) days, while for EFPS the float period shall range from three (3) to five (5) days. However, for those with no OTC transaction or falling below the threshold for a particular semester under evaluation, the float period shall be one (1) day less than the minimum floa t period prescribed. The guidelines and procedures in the determination of float period for a particular semester applicable to AABs shall be covered by a separate issuance. b. For EFPS transactions, all internal revenue collections shall be credited to the account of the BTr on the date of collection and remitted on the date prescribed in a written communication by the Assistant Commissioner, Collection Service (ACIR-CS) to the concerned AAB and BTr. The float period for EFPS shall be half of the float period for OTC transactions as notified by the BIR. c. For OTC transactions [include s payments thru Debit System, Electronic Service Machine (ESM) and G-Cash], all internal revenue collections shall be credited to the account of the BTr on the date of collection and remitted on the date prescribed in a written communication by the ACIR-CS to the concerned AAB and BTr. d. For AABs accredited for the first time, the applicable float period shall be the minimum as notified by the BIR. The penalties imposed on AABs for non-compliance with the provisions of MOA, as provided for in Revenue Regulations (RR) No. 15-94, as amended by RR No. 19-2001, is revised as prescribed in Annex A-2 of the MOA attached in the Regulations. All penalties imposed, after the effectivity of these Regulations, on procedural errors, as well as violations on remittance procedures and other violations relative to MOA, Bank Bulletins and applicable revenue issuances, shall not be subject to compromise. Prior to the execution of the new MOA, all existing AABs shall: a. Comply with the responsibilities indicated in the existing MOA; b. File a Letter of Intent indicating the list of branches for accreditation and submit necessary documents relative thereto within 30 days from effectivity of these Regulations; and c. Settle outstanding penalties not later than 30 days from receipt of written notice based on the following: i. Procedural Errors/Delay in Submission of Reportorial Requirements For Calendar Year 2007 and prior years – 60% of total Penalties imposed For Calendar Year 2008 – Full payment ii. Penalties for Late Remittance of Tax Collections Full payment of penalties imposed shall be paid, except for those who have pending application for compromise settlement filed and received not later than December 31, 2007 for which the Bank Accreditation Committee (BAC) has resolved/decided; provided further, that payment must be made within the prescribed period stated in the BAC decision. d. The float period that AAB shall follow for EFPS and OTC transactions from the time of execution of the new MOA until June 30, 2008 shall be based on the notice to be given during the signing of the new MOA. The authority of an AAB to collect internal revenue taxes shall be revoked upon failure to file Letter of Intent to renew accreditation, submit documentary requirements, and settle outstanding penalties as notified by the BIR within the specified period. Likewise, after proper evaluation of BAC, revocation of authority to collect internal revenue taxes shall also be resorted to, in cases of AABs’ violation of the provisions of the MOA and non payment of penalties imposed.