BIR steps up efforts to increase collections from large taxpayers

The government is stepping up its efforts to boost collections from the country's over 2,000 large taxpayers through the adoption of technology- and information-based solutions. In particular, the Bureau of Internal Revenue (BIR) will enhance the audit process through statistical analysis using industry and economic benchmarks to identify taxpayers at high risk of non-compliance. “Our challenge is not to look for the large taxpayers - our challenge is to look for the large, missing taxpayers,” said Finance Secretary Cesar Purisima at the launching of the BIR's campaign for its large taxpayers service (LTS). The BIR, which is under the Department of Finance (DOF), also intends to improve information linkages with other government agencies to enhance other collection efforts, such as customs payments and self-reported income tax filings. Commissioner Kim Henares said the move is part of the BIR's transition from a  “customer relations agency” to a law enforcement agency. “We’re not imposing any new taxes. We’re just implementing the tax code the way it should be implemented,” she said at the same launching event. LTS accounts for the biggest share in the BIR's total revenues. With 2,019 registered and active taxpayers, LTS collections last year totalled P649.95 billion, or 64 percent of the BIR’s total collections from operations of P1.015 trillion. For 2013, LTS collection target was pegged at P768.3 billion or 62.7 percent of the P1.225 trillion total collection goal for 2013. The target also represents an 18.2-percent increase over the LTS’s actual collections for 2012. The LTS will also improve information linkages between the BIR and other government agencies to enhance other collection efforts, such as customs payments and self-reported income tax filings. — KBK, GMA News