Solon proposes use of credit cards for tax payment

By on December 9, 2014


MANILA — To avoid long queues in paying taxes, Bureau of Internal Revenue should allow credit card holders to use it, Paranaque City Rep. Eric Olivarez said on Monday.

In his House Bill 5095, Olivares said his proposed measure seeks to allow the use of credit cards or debit cards for the payment of taxes in the country.

“The use of credit cards or debit cards will become an acceptable way and a convenient way to pay taxes,” Olivarez said.

He said allowing the use of credit cards or debit cards for the payment of taxes will encourage more individuals to pay their tax obligations properly.

“Tax evasion will be lessened if people will have an alternative, that is delayed payment secured by the credit card system,” Olivarez noted.

He said the government will have no problem collecting from every taxable individual what is due of them as it can directly collect from his /her issuing bank or financial institution.

“The bank on the other hand, will have no trouble collecting the accumulated credit card debt from its individual cardholders because it has been expertly doing this practice for decades now,” Olivarez explained.

Under the bill, the taxpayer may not use or utilize the credit cards or debit cards issued under the name of a person other than himself for the payment of his own taxes due.

The bill mandates the Bureau of Revenue (BIR) to select companies to process credit and debit cards on its behalf, and these companies may charge taxpayers a reasonably and regulated amount go processing fee.

The measure also disallows any person to use or disclose any information relating to credit or debit card transactions obtained pursuant to this Act other than for purposes directly related to the processing of such transactions, or the billing or collection of amounts charged or debited pursuant thereto.

Exception to this confidentiality rule is when debit or credit card issuers or others acting on behalf of such issuers use or disclose such information for purposes directly related to servicing an issuer’s accounts.

“Likewise, they may disclose such information for purposes directly related to statistical risk and profitability; transferring receivables, accounts, or interests therein; auditing the account information and complying with the laws of the Philippines or any valid court order pursuant to a criminal investigation,” Olivarez pointed out.

But when for any reason the use of credit cards or debit cards in the payment of taxes proved to have been done fraudulently or in contravention or circumvention of any law especially to evade tax obligations, the taxpayer shall be liable with the bank which issued the credit card for the actual and complete payment of taxes due.

“This is without prejudice to the filing by the Bureau of Internal Revenue of civil, criminal and administrative charges against any person or persons conniving for the purpose of evading taxes due,” Olivarez emphasized.