Submission of Alphabetical List of Employees/Payees of Income Payments as Amended under Revenue Regulations No. 1-2014

The BIR just recently issued Revenue Regulations No. 1-2014 amending the provisions of Revenue Regulations (RR) No. 2-98, as Further Amended by RR No. 10-2008, Specifically on the Submission of Alphabetical List of Employees/Payees of Income Payments as follows:

“Section 2.83.3 Requirement for list of payees – All withholding agents shall, regardless of the number of employees and payees, whether the employees/payees are exempt or not, submit an alphabetical list of employees and list of payees on income payments subject to creditable and final withholding taxes which are required to be attached as integral part of the Annual Information Returns (BIR Form No. 1604CF/1604E) and Monthly Remittance Returns (BIR Form No. 1601C, etc.), under the following modes:

(1) As attachment in the Electronic Filing and Payment System (eFPS);

(2) Through Electronic Submission using the BIR’s website address at esubmission@bir.gov.ph; and

(3) Through Electronic Mail (email) at dedicated BIR addresses using the prescribed CSV data file format, the details of which shall be issued in a separate revenue issuance.

“In cases where any withholding agent does not have its own internet facility or unavailability of commercial establishments with internet connection within the location of the withholding agent, the alphalist prescribed herein may be electronically mailed (e-mail) thru the e-lounge facility of the nearest revenue district office or revenue region of the BIR.”

Please refer ftp://ftp.bir.gov.ph/webadmin1/pdf/80937RR%201-2014.pdf of the full text of the Revenue Regulations No. 1-2014.

But there're issues arises with the new Revenue Regulation No. 1-2014 (Submission of Alphabetical List of Employees/Payees of Income Payments) issued by the Commissioner of Internal Revenue (CIR): First (1) Under this regulation imposes a higher penalty compared to Section 250 of the NIRC. Failure to file for every BIR return related to the regulation is subject to P1,000 fine and failure to comply with the technical/substantial requirements shall not qualify as a deductible expense for income tax purposes. Secondly, (2) Under the current EFPS does not allow for attachments. Thirdly (3) The currently Alphalist is not required to be submitted with BIR 1601-C. Technical issues and penalty issues...