PDIC, BIR centralize tax transactions of closed banks

State-run Philippine Deposit Insurance Corp. (PDIC) has entered into an agreement with the Bureau of Internal Revenue (BIR) to centralize the tax-related transactions of closed banks under liquidation in Makati City.

PDIC president Roberto Tan and BIR commissioner Ceasar Dulay have agreed to facilitate more efficient resolution of tax-related transactions of closed banks through the centralization of these transactions in Revenue District Office (RDO) 48 in Makati City.

The BIR recently approved the request of PDIC to transfer the filing of the income tax returns (ITRs) of all closed banks under liquidation and the resolution of tax issues of these closed banks to a single RDO to ensure convenience and consistency in treatment and to avoid incurring expenses for the closed banks.

PDIC is the statutory liquidator of closed banks under Republic Act 3591, as amended, or the PDIC Charter.

As liquidator of closed banks, PDIC is responsible for, among others, the filing of the ITRs of all closed banks. As of the end of December 2017, there were 676 closed banks under PDIC liquidation.

Dulay issued a memoran- dum circular last November directing the transfer of filing of closed banks’ ITRs and tax payments from various RDOs to Makati City, the same RDO that has jurisdiction over PDIC’s principal office.

This initiative supports PDIC’s function to expeditiously liquidate closed banks’ assets for the benefit of its creditors as well as cut on administrative costs in the liquidation of closed banks.

Prior to the circular, taxrelated transactions of closed banks are undertaken in various RDOs nationwide.

Tan said the centralization of all closed banks’ tax transactions under one RDO would simplify management as well as prevent unnecessary administrative expenses brought about by having to coordinate with many RDOs nationwide.

PDIC clarified the move would not affect the collection efforts of the previous RDOs given that generally, closed banks no longer have incomegenerating activity.

As liquidator of closed banks, PDIC manages and disposes of the assets of closed banks, and proceeds are used to settle the claims of creditors in accordance with the preference and concurrence of credits as provided by the Civil Code of the Philippines.