With tax audit suspension, BIR relies on voluntary compliance of taxpayers

CEBU, Philippines - The Bureau of Internal Revenue now depends on voluntary compliance of taxpayers as tax audits are being suspended by its new commissioner.

"Babawi kami sa voluntary compliance ng taxpayers," said Ma. Grace B. Javier, new assistant regional director of BIR in Cebu.

Recently, new BIR Chief Cesar Dulay ordered the suspension of all tax audits and other field operations of the BIR related to the examinations of taxpayer's books of accounts,  records and other transactions. 

However, the suspension does not include those taxpayers retiring from business, national government agencies, local government units and government owned and controlled corporations including subsidiaries and affiliates, and those with cases prescribing on or before Oct. 31, 2016.

Dulay also recently released Revenue Memorandum Circular 69-2016 suspending, until further notice, the issuances of his predecessor in the period covering June 1-30, 2016.

He said that issuances that dismayed taxpayers will have to be reviewed. 

Local BIR officials also said that despite these mandates from the new commissioner,  tax mapping will continue.

Tax mapping aims to identify  establishments that are not registered and those that are not issuing official receipts to the public.

The Duterte administration had vowed to make reforms in the BIR and address corruption in the agency.

Dulay recently made an appeal to the public to stop bribing tax collectors as he moves to stamp out corruption in the agency. 

"Do not corrupt us," he was quoted as saying. 

President Duterte tagged the BIR as among the most corrupt government agencies. (FREEMAN)