An Act Establishing A System For Tax Incentives Transparency, And For Other Purposes
- Aims to improve the monitoring system for the tax incentives granted by the Investment Promotions Agencies (IPAs) and other government agencies so that the sectors benefiting from the reduced tax rate can be easily and objectively identified, to ensure transparency and avoid discretion on the part of the authorities.
- The Department of Finance (DOF), in coordination with the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), shall implement stricter monitoring procedures by creating a Tax Incentives Tracking Program. Failure by the registered businesses to comply with the reportorial requirements shall be a ground for the suspension of the incentives that they enjoy for the particular taxable year, while repeated violation shall be a ground for the cancellation of the enterprise’s registration.
- A consolidated annual Tax Incentive Report shall be submitted to the President and to the Chairmen of the Committees on Appropriations and on Finance of both houses of Congress as part of the annual Budget of Expenditures and Sources of Financing (BESF).
- To enhance government accountability, the DOF, BIR and BOC, shall jointly conduct an annual evaluation to determine the impact of the tax incentives on the Philippine economy.
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