BIR lines up 10 tax collection measures

By LEE C. CHIPONGIAN
February 5, 2010, 3:59pm

The Bureau of Internal Revenue (BIR) has lined up 10 measures to effectively collect the correct taxes and that there will be no “relaxation” in the collection of taxes.

BIR Commissioner Joel Tan-Torres said a moratorium on tax amnesty has been imposed with the creation of Republic Act No. 9480 and the finance department order issued in 2007 implementing the law has made sure that there will be no more reprieve.

As a matter of policy, he said the tax amnesty that was granted until 2008 was to encourage and improve tax compliance.

“We only allowed taxpayers to claim for losses (because of the typhoons in 2009) but that was all,” said Tan-Torres.

The BIR reported P26-billion casualty effect losses caused by the two typhoons “Ondoy” and “Pepeng” last year. The BIR reported revenue shortfalls of more than P50 billion in 2009.

Still, the BIR chief said he is confident of meeting the tax target that they have presented to the DoF of P830 billion because he has collection-enhancing measures to enable the agency to get the programmed collections.

These measures include the Run After Tax Evaders or RATE Program, the integrated approach in administering the country’s large taxpayers, high-visibility public awareness programs on taxpayer service and enforcement campaigns.

BIR will also conduct close monitoring of recently enacted tax eroding measures and several investment incentives programs, as well as implement several tax campaigns. Major focus will also be given to the collection of taxes and back-taxes of large taxpayers.

In October last year, the BIR issued a memorandum to business taxpayers to report their claims for losses due to the typhoons.

These claims for losses are for purposes of income tax deduction.

As for tax amnesty, the BIR in 2008 collected only P5 billion from the tax reprieve, way below the targeted P15 billion due to too many exceptions.

A BIR official said about P10 billion of estimated foregone revenues from delinquent accounts were not included in the amnesty program.

The amnesty did not include assessments against taxpayers, where the said assessments have become final and executory.

Under the program, taxpayers filed their Tax Amnesty Returns and the required Statement of Asset, Liabilities and Networth to qualify.

The amnesty tax is five percent of the taxpayers filed SALN.

The amnesty program took effect in June 2007, and covered all national internal revenue taxes like income tax, estate tax, donor’s tax and capital gains tax, VAT, other percentage taxes, excise taxes and documentary stamp taxes.