BIR issues additional policies on deficiency taxes

The Bureau of Internal Revenue (BIR) has issued  additional policies governing the collection of deficiency taxes uncovered through computerized data matching, a ranking official yesterday said.

Deputy Commissioner for Operations Nelson Aspe said the new rules, as stipulated in Revenue Memorandum Order No. 4-2008 applies to Tax Reconciliation System-Letter Notices (TRS-LN) that were issued to delinquent taxpayers for taxable year 2005.

According to the order, the BIR’s collection service, through its withholding tax division, shall list the taxpayers under the jurisdiction of revenue regions that have been given letters on tax deficiencies.

The taxpayers’ tax identification number, revenue district office where the taxpayer is registered, the amount of discrepancy uncovered and tax type shall also be provided to the BIR’s collection service.

According to the BIR, the list shall be submitted to the Office of the Commissioner. The BIR commissioner shall  then select which cases shall be referred to the Legal and Inspection Group (LIG) for appropriate legal action.

The LIG through the National Investigation Division (NID) of the Enforcement service shall then make the necessary documentations to prepare the case for prosecution under the government’s Run After Tax Evaders program.

“Once evidence has been gathered sufficient enough to warrant  the inclusion of a case in the RATE program, the case will be referred to the Prosecution Division of the Legal Service or the RATE team, whichever is applicable for the start of the prosecution process,” Aspe said.

The BIR has been stepping up efforts to boost revenues amid perennial shortfalls in its collection efforts.

This year, it expects to collect only P782 billion or P63 billion lower than the official target of P845 billion.