BIR to raise 2011 target to over P900 billion

By CHINO S. LEYCO
May 9, 2010, 2:40pm

The Bureau of Internal Revenue (BIR) will raise its collection target for next year above P900 billion, higher than this year's P830 billion.

BIR Commissioner Joel Tan-Torres, said over the weekend that the country's main tax collection agency has yet to set the exact target for 2011, citing it will come from the Department of Finance (DoF).

The BIR, which accounts for around two-thirds of the state's tax revenues, is so far ahead of its collection target for 2011. The tax bureau is tasked to collect P830 billion this year.

Despite several tax eroding measures that Congress had passed last year, the BIR was able to attain its tax collection target in the first four months of the year.

In April alone, tax collection reached P87.1 billion, beating its goal by P900 million due to efficiency in tax collection and economic recovery.

April is traditionally the biggest tax collection month for the BIR because the deadline for annual taxes falls on that month.

Tan-Torres said the tax bureau is tasked to collect P79.9 billion this month.

He, meanwhile, said the BIR is now ready to implement several tax measures to meet the collection target for this year, “I am optimistic that we can do it.”

The new game plan included the intensified tax evasion drive, simplified process in the audit of financial statements of the country's 1,000 top corporate taxpayers, enhancement of taxpayer service and enforcement campaigns, close monitoring of recently enacted tax eroding laws and investment incentive programs.

Tan-Torres said they will be hiring additional 6,000 lawyers and accountants, boosting the BIR workforce to some 16,000. He said the bulk of these new recruits will be fielded in legal and prosecution divisions to strengthen the run-after-tax-evaders (RATE) program.