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THE
officer in charge of the Bureau of Internal Revenue (BIR)
has outlined more than 20 measures that the embattled
agency will carry out in coming months as it races
against time to meet tough collection targets.
Addressing BIR officials and employees and a visiting
Finance Secretary Margarito Teves recently after she was
named to take over the agency she had served for 29
years, Commissioner Lilian B. Hefti explained that the
programs are crucial, considering that with government
having ruled out new tax measures, further increases in
collection in order to meet targets can only come from
improving tax administration efficiency.
Referring casually to the problems that led to the
relief of her predecessor Jose Mario Buñag, Hefti said,
“The past few months were truly a test of our strength
as an institution, but the BIR, through more than a
century of service, has always proven to be resilient in
the face of any situation.”
Buñag’s
relief was announced by Malacañang Palace a day after
finance officials revealed the five-month deficit
figures, and Teves insisted that the full-year target of
P63 billion would stay. He also termed as “doable” the
targets set for the BIR, the largest revenue generator
in government, and the Bureau of Customs—P730 billion
for BIR and P228 billion for Customs.
Hefti
said the BIR will pursue “new undertakings” in the
coming months in a bid to meet the tough fiscal targets.
These include, she said, a review of rulings confirming
the tax exemptions and preferential tax treatment of
taxpayers; a review for possible implementation of
regulations suspended in the past; a check of compliance
of the top 10,000 corporations and government offices,
including GOCCs, with the withholding tax rules; an
audit of 2006 internal revenue tax liabilities;
computer-matching of figures of withholding agents with
the reported figures of income recipients; a short-term
audit of VAT returns for the first half of 2007; and the
grant of additional incentives to banks to improve
taxpayer service.
Also in
the cards is an internal audit of delinquent accounts
and an internal audit of Letters of Authority, Tax
Verification Notices, and Mission Orders issued; the
gradual implementation of the use of marker dye on
petroleum products and the fuse on stamps on cigarettes
and labels on alcohol; and a memorandum of agreement
with the Bureau of Local Government Finance for it to
require treasurers to demand presentation of tax returns
before the renewal of licenses.
Among
the more important measures done in the past 18 months
in a bid to meet the tough targets—and which the BIR
under Hefti will continue—are: an industry profiling and
benchmarking of taxpayers’ date, a risk-based audit as
well as an industry-issue audit, information-sharing and
-matching with third parties, the closure of
establishments of VAT-registrable taxpayers which did
not register under the VAT system, and a matching of
sales of one entity with the purchases of other
entities.
Also
deemed crucial for improving tax administration
efficiency is an audit of taxpayers with preferential
tax treatment or exemption such as those in the
Philippine Economic Zone Authority, the Bases
Conversation Development Authority, the Board of
Investments and the Cooperatives Development Authority.
Hefti
said the agency will also undertake a tax mapping of
inactive taxpayers and expand the taxpayer base by
consulting records of the Securities and Exchange
Commission, Department of Trade and Industry, Social
Security System and local governments.
--L.M. Fernandez |
