MANILA - The top official of the Employers Confederation of the Philippines (ECOP) on Thursday admitted that they should have converted earlier their system to reflect lower withholding taxes under the new tax reform law.
"I must admit that some of our people were not up to par when it comes to implementing this right away," ECOP chairman Donald Dee told ANC Business Nightly.
"But be that as it may, I was just saying this morning that we would be asking Commissioner (Caesar) Dulay to at least give us a chance to give us time to convert our old program into a new program," he added.
Dee said "a big portion" of ECOP's members are affected but did not give further details.
"A big portion of them. I did the operators, we offered to go into manual right now because they…would like to avoid [doubling] the work," he said.
"It’s not a question of money, it’s a question of admittedly, they delayed the process…there was no implementing guidelines. These are all technicalities that should’ve not been brought up. We intend to implement it right away."
The ECOP has asked the Bureau of Internal Revenue (BIR) for more time to implement the lower tax rates, particularly for companies that need to implement changes to automated salary systems.
This, after employees reportedly complained that the lower withholding tax has not been implemented by their employers.
BIR Commissioner Caesar Dulay said employers have no reason not to use the lower withholding tax rates even if the revenue regulations have yet to be finalized.
He said the release of the Revenue Memorandum Circular on December 29 gave employers enough time to implement the lower taxes.--With reports from Warren de Guzman, ABS-CBN News