BIR wants more individuals to pay taxes in 2012, raises collection target 15%

The Bureau of Internal Revenue (BIR) is raising its individual income tax collection target to P222.28 billion in 2012, up 15 percent from P192.72 billion this year, BIR Commissioner Kim Henares said Monday.   More professionals that are self-employed will pay their taxes next year, according to the commissioner, noting that individual income taxes account for more than 20 percent of the agency’s revenue collections.   A chunk of all income tax collections are paid by salaried individuals.   The agency’s Run After Tax Evaders or RATE program will encourage people to be vigilant and report those who do not pay the right taxes, BIR deputy commissioner Estela Sales.            The program made significant gains this year, with the bureau filing cases against high-profile individuals.              “We’re proud of our accomplishments. In the past, the agency’s batting average at the Department of Justice (DOJ) was dismal if you look at the number of cases that actually make it to the courts,” said Sales.   “Now, the increase in the number of cases that reach the Court of Tax Appeals is much higher,” the deputy commissioner added.   Latest BIR data showed 83 tax cases with P35.76 billion in claims have been filed with the Department of Justice (DOJ) since the Aquino administration took the helm of government in June 2010.   The BIR said 19 of the 83 cases have been resolved by the DOJ, and that 87 percent or 16 of the 19 cases were decided in favor of the BIR.   According to the bureau, there is a high incidence of tax evasion among the country’s three million self-employed professionals that include 190,000 doctors and lawyers.   “The average annual income tax payments of professionals, however, average less than the monthly minimum wage of P8,500,” the bureau said. — VS, GMA News