Requiring Government Offices, Agencies and Instrumentalities to Comply Strictly With the Laws and Regulations on Withholding of Taxes

Case Overview and Summary

EXECUTIVE ORDER NO. 651

Requiring Government Offices, Agencies and Instrumentalities to Comply Strictly with the Laws and Regulations on Withholding of Taxes

- Government offices, agencies, instrumentalities, provincial, city and municipal governments, and government-owned or controlled corporations are delinquent in withholding and remitting taxes to the Bureau of Internal Revenue as required by the National Internal Revenue Code.
- Government entities must fully comply with tax laws and regulations, serving as a model for taxpayers.
- Under Presidential Decree Nos. 1705 and 1773:
    - Any government employee or officer charged with withholding and remitting taxes is personally liable for surcharges, interests, a fine of not less than P5,000, and imprisonment of not less than one (1) year nor more than two (2) years for delinquencies.
- All government ministries, bureaus, offices, agencies, instrumentalities, provincial, city or municipal governments, and government-owned or controlled corporations must strictly comply with withholding and remitting internal revenue taxes as required by the National Internal Revenue Code.
- Each entity must submit to the Bureau of Internal Revenue the name and position of the employee or officer charged with withholding and remitting taxes within sixty (60) days of this Order.
- Any change in the designated employee or officer must be reported within ten (10) days.