MANILA, Philippines - The Bureau of Internal Revenue plans to file a motion for reconsideration before the Court of Tax Appeals (CTA) regarding the court’s decision to issue a temporary restraining order that prevents the BIR from garnishing the real properties of the Makati City government.
Tan-Torres said his office has been informed that the CTA issued the order last week. “The CTA has issued a restraining order barring us from garnishing the real properties, movable equipment and vehicles, bank accounts of Makati City. We have to abide by that order…but we will file a motion for reconsideration,” he said.
The CTA acted on a motion filed by the Makati government following the BIR’s April 8 decision to slap a lien on the city government’s properties following the failure of the Makati government to settle its taxes.
The CTA, in a decision dated Dec. 16, 2009, ordered Makati to pay BIR P1.05 billion in deficiency taxes for 1999 to 2001 and P217.8 million for 2002 to 2004.
Tan-Torres said the Makati City government would have to file a surety bond until the case is resolved. The bond is a form of guarantee that the government of Makati would fulfill its supposed tax obligations with the BIR if the court decides in favor of the tax agency.
The BIR has been running after government agencies, including the Bangko Sentral ng Pilipinas and the Metropolitan Manila Develoment Authority over alleged back taxes. The MMDA has agreed to a compromise amount of P25 million.
The agency has been stepping up measures to improve collections as it is tasked to collect P830 billion this year, revised downward from an original collection goal of P875 billion.
The BIR accounts for roughly 70 percent of total government revenues. - By Iris Gonzales
