DAVAO CITY—The incoming commissioners of the government’s largest revenue-generating agencies on Tuesday committed to implement reforms to address corruption and bottlenecks in the Internal Revenue and Customs bureaus.
Incoming BIR commissioner Cesar Dulay said at the sidelines of the Sulong Pilipinas business consultation forum he would recall the recently issued Revenue Memorandum Order 24-2016 of incumbent chief Kim Henares.
“Well, there was the latest issuance only three weeks ago on a lifestyle check on the buyer, whether the buyer is qualified or has the money to buy the property. We just want to recall and take a look at that particular [issuance],” Dulay said.
Henares, with only few days left before the change of administration, issued on June 7 Memorandum Order 24-2016 which laid out tax probe rules for property buyers and sellers found to have no financial capacity to hold onto their assets.
“When you recall, a lifestyle check, it’s an opening and a tool for harassment and corruption,” Dulay said.
“We’ll have to review all the others I haven’t seen. There were ten others I have heard from the businessmen,” he said.
Dulay said he would stop all pending tax investigations and audit currently “sitting on the hands of the” BIR examiners.
“The mandate of the president is to stop corruption, and stopping corruption would include the processing time. We have considered initially on the first day to recall all letters of authority and ask revenue district offices and examiners to give an account,” he said.
“I hear feedback that LOA can last as long as two to three years. We should put a cap on that period because it is an opportunity for what we call negotiation,” he said.
The BIR issues an LOA to inform a taxpayer that he or she is being investigated for possible tax violations.
Meanwhile, incoming Customs commissioner Nicanor Faeldon said he would instill several reforms such as pushing for the computerization of processes in the agency.
“I already stated the reforms. There are at least four reforms that we are envisioning to do. One is we have to fast track the computerization,” Faeldon said.
“Another thing is that we want to remove the compulsory utilization of brokerage, because some unscrupulous brokers are using their services to smuggle commodities into the country. We will see what the CMTA [Customs Modernization and Tariff Act] can do to aid us in the transition from compulsory to optional usage of brokerage,” he said.
He said he would look at possibly extending the conduct of the shipment inspection and containerized goods to be subjected to a shipment inspection. “We really what to predetermine the quantity and quality of goods or commodities before leaving the ports of origin. And finally, we really want to coordinate with importing countries to our country to give us a more accurate government certified prices of commodities. These are not very easy things to be done because we need approval and participation of the importing and exporting parties,” he said.
