BIR eyeing “untapped” taxpayers

CEBU, Philippines - With its revenue collection target normally increasing every year, the Bureau of Internal Revenue said it continues to develop new taxpayers who have not been targeted yet.

Rosa Maria Rubin, Collection Division assistant chief of BIR Cebu, said the agency would further engage into information exchange with the Bureau of Customs to ensure the compliance of potential taxpayers.

The accreditation of importers and customs brokers passes through the revenue agency, Rubin noted. The sharing of basic information is aimed at enhancing tax mapping and the capacity to collect income.

She said they also work with Securities and Exchange Commission and Department of Trade and Industry for the exchange of basic data, records and profiles of small and large companies.

“The secretary [Cesar Purisima of the Department of Finance] told us to increase our connection with these agencies,” she told The FREEMAN.

As some organizations or individuals are transferred to the bureau’s Large Taxpayers Division, the official said finding new taxpayers has now become a challenge especially with the presence of laws that exempt particular groups of people from taxation.

For instance, the Barangay Micro Business Enterprise  Law exempts enterprise owners with assets that are not higher than P3 million from paying income tax. This law aims to help small businesses in the community to grow and provide employment.

COMPLIANCE

In addition, she also clarified talents working in the entertainment industry are considered professionals given that they are getting income from the companies they are endorsing.

“You have to update them [on their responsibilities]. Media talents especially those who accept endorsements are professionals.

“We just have to intensify our information dissemination. If you will understand what your tax obligations are, you will comply. In BIR-13, at least, we try to avoid Oplan Kandado,” she pointed out.

BIR’s Revenue Memorandum Order No. 3-2009 says Oplan Kandado is an initiative that reinforces the bureau’s imposition of prescribed administrative sanctions for non-compliance of issuing receipts, declaring taxable transactions, filing returns and paying correct amount of taxes.

Moreover, the BIR Cebu also said the revenue targets of its five revenue district offices have posted a 20 percent year-on-year growth.

Rubin added BIR-13’s revenue target for 2015 may increase by 15 percent as it also depends on the joint decision of DOF, the commissioner and income generating bureaus.

Jose Hector Baronda, legal assistant chief, said the revenue bureau would widen its scope in taxing those who evade and avoid tax.

The government’s tax evasion campaign and its fight against corruption in the collection process helped the Philippines achieve investment grade ratings from major credit rating agencies -- Moody’s Investors Service, Standard & Poor’s and Fitch Ratings. (FREEMAN)