BIR, SEC to share data to improve tax enforcement
MANILA, Philippines — The Bureau of Internal Revenue (BIR) and the Securities and Exchange Commission (SEC) have entered into a data sharing agreement (DSA) in a bid to improve tax enforcement activities in the country.
The BIR and SEC recently inked a DSA on corporate information as part of the former’s current priority programs of improving taxpayer’s service and intensification of enforcement activities.
The DSA aims to promote an enhanced and streamlined access to information between the two government institutions.
BIR Commissioner Romeo Lumagui said the agreement would allow the agency to assess and collect the correct tax due as well as apprehend and prosecute tax evaders.
Based on the agreement, the BIR will have on-site, off-site and online access to relevant corporate data, such as the name, address, date of birth, nationality and other beneficial ownership information from SEC.
It should be noted that data on beneficial ownership information will eventually show the real masterminds behind financial crimes such as tax evasion, receipts with fake transactions, and money laundering.
The DSA is valid for five years unless pre-terminated by either of the parties involved.
Lumagui warned tax evaders that the latest agreement with the SEC is a direct message to criminals and tax dodgers.
“They should realize that hiding their activities and assets through non-transparent legal entities shall be uncovered through the cooperation and coordination of all the agencies involved,” Lumagui said.
With the signing of the DSA, the BIR will implement and maintain appropriate security measures of all the data and information that will be acquired from the SEC.
The BIR assured that personal and sensitive information to be obtained will be treated with confidentiality in compliance with the provisions of the said agreement.
The BIR is now preparing a revenue issuance that would disseminate the DSA to all BIR employees and the taxpaying public.
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