The Bureau of Internal Revenue (BIR) expects to lose up to P50 billion this year as a result of the upcoming national and local elections.

A top revenue official made the disclosure on Monday as the agency closed more than 20 businesses in Metro Manila and elsewhere, stepping up its "Oplan Kandado" (OK) program to enhance the voluntary payment of taxes, thus effectively reducing the anticipated huge collection deficits for 2009.

The official, who requested not to be named, said it is a common knowledge among tax collectors that some corporations and rich individuals divert portion of their tax payments to the coffers of politicians seeking reelection or running for higher office.

"This malpractice has been going on for years as evidenced by the huge drop in tax take during election time," the official said.

He said this is one of the reasons the BIR management instructed its field men to intensify the crackdown against firms underdeclaring their sales to cut down on value added and income tax payments.

The latest closure orders were carried out by Revenue District Officers (RDOs) Alvin Galanza of Las Piñas, Gerry Dumayas of Taguig, Dante Aninag of South Makati, Isabel Paulino of Mandaluyong, Ramir Narvaez of South Quezon City, Maridur Rosario of Caloocan, and Art Aquino of Valenzuela.

Aquino served the highest number of nine closure orders among the RDOs, followed by Rose Ragasa of Malabon with seven.

Last week closures approved by Revenue Commissioner Sixto Esquivias IV brought to more than 240 the number of business firms closed since OK was launched in February.

Almost all of them, however, were allowed to resume operations after settling their tax liabilities.