300 firms added to BIR's large taxpayers base

The Bureau of Internal Revenue on Friday said it has added 300 companies to its large taxpayers base, which originally included only the country's top 1,000 corporations, to improve the agency's ability to meet its 2007 collection goal of P766 billion. BIR Assistant Commissioner Nestor Valeroso, who heads the BIR's Large Taxpayers Service (LTS), said the new large taxpayers come from various sectors, including manufacturing, retail, food, mining, alcohol, insurance, and real estate. BIR Commissioner Jose Mario Bunag earlier ordered the revision of the LTS list after it failed to deliver on its collection targets for the last six years. The additional LTS members brought to 1,300 the number of taxpayers under the division. The review would help identify large taxpayers that consistently fail to meet the criteria set under the tax code, and replace them with qualified firms. The number of taxpayers under the LTS has declined from 1,300 in 2000 to around 1,081 taxpayers due to company mergers or dissolutions. The LTS accounts for about 53 percent of the total tax take of the BIR. Large taxpayers with a net worth of at least P300 million, paying an annual income tax and withholding tax of at least P1 million. They would also pay value added tax (VAT) of at least P100,000 for any quarter and P1 million in excise tax for the preceding taxable year. This year, the BIR is tasked to collect P765.9 billion. Of the amount, 58 percent is targeted to come from the LTS, Valeroso said. -GMANews.TV