On behalf of BIR Commissioner Jose Mario Buñag, Assistant Commissioner Nestor S. Valeroso of Large Taxpayers Service (LTS), thanked the large taxpayers’ representatives for their attendance and appealed to them to join hands with the BIR in the latter’s tax collection efforts for year 2007 and the years to come.

The 300 or so new large taxpayers come from various businesses and industries in the country, which include manufacturing, retail, food, mining, alcohol, insurance, real estate, among others.

During the briefing, the BIR said that they were classified as large taxpayers because of their tax payments and financial condition and results of their operations.

Under Revenue Regulations (RR) No. 1-98, issued by Commissioner Buñag, a taxpayer becomes a large one if it has Net VAT paid or payable of at least R100,000,00 for any quarter of the preceding taxable year or in the case of Excise Tax, it paid or has payable at least P1,000,000.00 for the preceding taxable year. In the case of Income Tax, the taxpayer has annual withholding tax payment for all kinds of withholding taxes of at least R1,000,000.00 for the preceding taxable year or a percentage tax of at least R100,000.00 per quarter and an aggregate annual Documentary Stamp Tax of at least R1,000,00.00.

As to financial standing, the taxpayer has annual gross sales receipts of R1,000,000,000.00 and a Net Worth at the close of each calendar or fiscal year of at least R300,000,000.00.

According to Valeroso, the LTS was created by virtue of Executive order No. 175 in order to respond to the need for a well-defined institutional structure in dealing with large taxpayers and strengthen administrative control over this group of taxpayers. As of last year, the LTS accounts at least 53 percent of the BIR’s annual revenue target. This year as the bureau is being tasked to collect R765 billion, the LTS is expected to have a share of at least 58 percent of the total revenue goal.

"In our desire to reciprocate your (large taxpayers) much valued contribution to the economy, we are giving you our best service to answer your needs," Valeroso said.

With this in mind, the LTS has come up with various tax strategies on how to best serve the old and the new large taxpayers, that total now 1,300 large taxpayers from its original number of 1,080.

During the meeting, several tax issues were discussed, including the status of audit/investigation of the new large taxpayers. Although the bureau will still come up with revenue issuances to clarify said issues, Valeroso said that the new large taxpayers that are now being audited/investigated by BIR Regional Offices will continue to be covered by said offices. However, those not issued with letter of authorities and/or letter notices will now be covered by the LTS at the BIR National Office.