BIR surpasses Oct. collection goal with final tax on PEACe bonds

Aided by collection on the controversial final tax on the PEACe bonds, the Bureau of Internal Revenue said Monday it surpassed its revenue goal last month. Revenue collections reached P75.47 billion in October, surpassing by P4.3 billion or 6.05 percent the BIR’s P71.16-billion target for the month. The bureau remains hopeful it can meet its P940-billion collection target for the year, said Commissioner Kim Henares. “Meeting the target by the end of the year is still possible." The final withholding tax on the Poverty Eradication and Alleviation Certificates or PEACe bonds totaled P4.966 billion, BIR data showed. Despite a Supreme Court order — keeping government from collecting the final tax on the bonds’ yield and discount — the Bureau of Treasury deducted the withholding tax on Oct. 18 when the bonds matured, saying it received the court order only on Oct. 19. The high court also issued a show cause order for government to explain why it should not be cited for contempt for violating the temporary restraining order on the final tax. October’s total collections came from the BIR cash operations (P69.19 billion) and non-cash collections (P6.277 billion) which consisted of taxes on debt papers floated by the Treasury Bureau. — VS, GMA News