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Sunday, November 24, 2024

BIR collections increase 15%

The Bureau of Internal Revenue said tax collection jumped 15.3 percent in November to P157.29 billion from P136.37 billion a year ago.

The BIR said in a report to Finance Secretary Carlos Dominguez III the November figure brought total collections in the first 11 months to P1.454 trillion, up by P127.41 trillion, or 9.6 percent, from a year earlier.

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It attributed the higher collection to the agency’s streamlined processes that improved efficiency in monitoring and collecting taxes, particularly the reduction of documentary requirements for one-time transactions and monitoring of process workflow.

The BIR earlier cut the 2016 revenue target to P1.6 trillion from P2 trillion set by the previous administration.

BIR commissioner Caesar Dulay told reporters in a recent interview the agency was reviewing options in raising revenues for the government, following its mandate as the largest revenue collection agency.

“But in terms of raising revenues, we are reviewing a lot of options for example since the mandate of the agency is to raise revenues. We’d rather encourage tax payers to compromise as long as it’s within the law, to compromise whatever pending assessments they have,” Dulay said. 

“We also have a number of cases with the Court of Tax Appeals,  Those were the assessments often being questioned and my instruction to our legal department is to try to work out a compromise and mediation, because mitigation takes a long time, and it does not help the taxpayer or the government in raising revenue, so that’s one area we are looking at,” Dulay said.

Dulay said the agency was also studying the possible expansion of the compromise settlement program.

“You know we are working on it really, but the principle we’d like to adopt is to encourage compromise agreements within the limits of the law,” the BIR chief said. 

He said the BIR would still pursue existing tax cases filed in the Court of Tax Appeals “in accordance with the rules.”

“I had a meeting with the presiding justice of the CTA and we discussed quite extensively the process of mediation. Mediation is a process where even while the case is pending in court, or pending with the CTA, parties can still discuss and work out some agreements,” Dulay said.

He said aside from the compromise with delinquent taxpayers, the BIR would continue to address reforms, particularly cleaning the agency from corruption and red tape. 

“I can say, if you look at the website on our accomplishments that we have progressed quite a few in addressing the internal administrative investigation cases.  About 300 examiners being asked to explain why they have been sitting on the LOA [letter of authority] for some time. They probably have some explanation also but we are waiting for that,” Dulay said.

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