AAB-acquirer liable for penalties on late remittance of tax payments through credit cards

This Tax Alert is issued to inform all concerned on the new rules regarding payment of taxes through credit/debit/prepaid card.

In case taxes are paid through credit/debit/prepaid cards, the payment of taxes shall be deemed made on the date and time appearing in the system-generated payment confirmation receipt issued to the taxpayer by the AAB-Acquirer, regardless of when the payments are remitted to the BIR.

Section 4 of Revenue Regulations 3-2016 is amended to the effect that the AAB-acquirer shall be liable to the penalties in case of late remittance or non-remittance of the payments to BIR.

Prior to this amendment, the taxpayer who paid on time may still be liable to penalties if the AAB-acquirer fails to remit the payments to the BIR on time.