BIR to charge taxpayers issuing bouncing checks

By David Cagahastian, BusinessMirror

Posted at May 02 2014 08:09 AM | Updated as of May 02 2014 06:32 PM

MANILA -- Internal Revenue Commissioner Kim S. Jacinto-Henares has ordered the filing of criminal charges against taxpayers whose check payments for taxes due have "bounced" or have been dishonored because of insufficient funds.

Henares issued Revenue Memorandum Order (RMO) 30-2014 for the strict enforcement of the Bureau of Internal Revenue’s (BIR) policies on the redemption of rubber checks that are received as payment for taxes due.

The memorandum said the balances of outstanding dishonored checks continue to increase in the BIR’s books of accounts because of the failure of revenue officers to adhere to the guidelines laid down for the redemption of these dishonored checks.

One of the policies that Henares wants strictly enforced is the filing of a case for violation of Batas Pambansa (BP) 22, or the bouncing checks law, against taxpayers who have issued checks that were subsequently dishonored due to “Account Closed.”

BP 22 carries with it a prison term of not less than 30 days but not more than one year and/or a fine not less than but not more than double the amount of the check issued.

Henares also said, “Dishonored check cases shall not be the subject of any compromise settlement.”

RMO 30-2014 reiterated the processes of the BIR in the redemption of dishonored checks, such as the payment of corresponding penalties for late payment and the practice of receiving only cash or manager’s check for the redemption to be completed.

The memorandum also provides that if the taxpayer does not respond to the BIR’s efforts to collect on the taxes due for which the dishonored check was issued, then a warrant of distraint, levy and/or garnishment may be issued, if necessary, to enforce the collection.

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