THE Bureau of Customs (BOC) is eyeing the reactivation of its voluntary disclosure program (VDP), which has been inactive in the last two years.
If plans push through, the agency will reimpose the VDP as early as November 15, mainly for importers of motor vehicles. The program could run until end of the year.
Customs commissioner Angelito Alvarez said the agency is targeting to earn at least P1 billion from the program, designed to allow importers to voluntarily report erroneous information on import entry declarations and underpayment of duties and taxes on past importations.
The proposal is subject to approval by the Department of Finance and the Bureau of Internal Revenue (BIR). It is patterned after a similar program by the BIR for errant taxpayers.
“Our target for the program is motor vehicle owners. Those who bought their respective vehicles at very low prices may take advantage of the program. This is their only opportunity to claim good faith and finally pay the right taxes,” Alvarez said.
Under existing laws, delinquent traders, importers and taxpayers must pay a surcharge of from 25-50%, a 12% interest per annum, and penalty that could go up to 800% of the original value of the imported goods.
In the earlier VDP program, only importers in good standing who complied with a standard disclosure format qualified. Alvarez said the new program would be more encompassing although he gave no details.
