BIR raises 2015 revenue targets of collecting units

CEBU, Philippines - As more taxpayers are now under the Large Taxpayers Service, the Bureau of Internal Revenue has changed the 2015 collection goals of its implementing offices.

The BIR recently released Revenue Memorandum Order 4-2015 to amend the revenue targets of its tax collecting units namely the revenue regions, revenue district offices and large taxpayers units.

The tax agency has raised the revenue goal of LTS to P1.07 trillion from the initial goal of P911.5 billion. While the income target for all revenue regions is P606.02 billion, a bit lower from P606.21 billion initially set early this year.

This has brought the total tax goal of BIR's implementing offices to P1.676 trillion, up from the previous P1.516 trillion. The bureau is set to meet its overall 2015 target of P1.704 trillion in revenues.

LTS contributes almost two-thirds of the total collections of BIR which is the government's largest revenue earner.

Latest BIR data showed that for 2015, the revenue bureau also aims to rake in P1.02 trillion in taxes on net income and profits, P140.4 billion in excise taxes, P373.8 billion in value added taxes, P79.1 billion in percentage taxes and P86.96 billion in other taxes.

The income targets are based on the based on the Calendar Year 2015 Medium Term Revenue Program as of December 4, 2015. These are set by the Department of Finance as approved by the Development Budget Coordination Committee for the 2015 Budget of Expenditures and Sources of Financing.

Tax revenues in Cebu

BIR 13 Cebu City's 2015 revenue target has also slightly increased to P25.909 billion from the earlier goal of P25.905 billion.

BIR 13 covers five RDOs in Cebu and Bohol, with north Cebu having the biggest income goal of P10.1 billion this year. North Cebu is correspondingly followed by Mandaue City (P8.4 billion), south Cebu (P3.4 billion), Tagbilaran City (P2.1 billion) and Talisay City (P1.98 billion).

On the other hand, the Large Taxpayers Division in Cebu has set to collect taxes from corporations and individuals amounting to P39.9 billion this year. That is obviously higher than the collection target of BIR 13.

In an earlier interview, BIR 13 Director Hermeno Palamine told The FREEMAN most of the revenue region's top taxpayers are eventually taken by the LTD because of their increasing capability to pay.

This, he said, has left the agency in a situation looking and developing new revenue sources to meet its target.

Jose Hector Baronda, assistant legal chief, said there are criteria based on financial condition, tax payment and results of operation for a taxpayer to be included in LTS.

As to the tax payment, Revenue Regulation 17-2010 stated, a taxpayer should have attained any of the following criteria: payable value added tax of at least P200,000 per quarter, P1 million excise taxes, P1 million income taxes, P1 million withholding tax, P200,000 percentage taxes and P1 million documentary stamp taxes.

Under the financial condition and results of operation, the conditions are: P1 billion gross sales, P300 million net worth, P800 million gross purchases and registered in the top corporate taxpayers of the Securities and Exchange Commission. — (FREEMAN)