Kim Henares on BIR's ‘aspirational’ tax collection goals, controversial e-filing system

Bureau of Internal Revenue Commissioner Kim Jacinto-Henares was wary of using the word "okay" when asked how things were at the revenue division offices she visited on Wednesday, the last day to file income tax returns.

 

Henares, after all, heads a government agency that has become unpopular for insisting on the implementation of a taxation system plagued by problems like an allegedly outdated e-filing program, a glitchy website, and legal loopholes.

 

"Kung okay, baka wala nang tao doon," she told GMA News Online, smiling. Reports throughout the day showed queues of taxpayers as early as 5 a.m., many of whom still missed the 5 p.m. deadline and had the gates closed on them.

 

This, along with the "aspirational" tax collection goal that the agency cannot always meet makes Henares' job difficult. This year, the BIR's collection target is P1.674 trillion.

 

"Kasi ho 'yung goal ay mataas. Sabi ho ng boss ko (the BIR is under the Department of Finance, headed by Sec. Cesar Purisima), aspirational ho 'yung goal. Hindi naman niya kami ine-expect na imi-meet 'yung goal."

 

Despite that, Henares does not quite agree with setting aspirational goals.

 

"Siguro ang unang tanong, dapat ang goal ay realistic. Kaya lang, at the same time, ako 'yung type ng manager na hindi na ako nakiki-diskusyon sa boss ko. Ang attitude ko: nagdiskusyon kayo, ito ang ibinigay kong opinyon, ito ho ang naging desisyon niyo, tatanggapin ko ho 'yung desisyon. Susubukan ko hong pagtatrabahuhan hanggang makakaya ko," she said.

 

She added: "Pagkatapos ng taon o project, kung ano 'yung kinalabasan, saka na lang ho ako mag-e-explain. 'Yun ho ang attitude ko, na attitude rin ng bureau."

 

'Maraming hindi nagbabayad'

 

The bureau deals with at least 23 million Filipinos who have been issued tax identification numbers. However, she said the number of taxpayers may be higher because of the value-added tax. "Lahat naman siguro tayo bumibili," she said.

 

The Philippines is said to have one of the highest tax rates at 32 percent, but the BIR commissioner said she doesn't think it's a deterrent for taxpayers to file and pay their taxes correctly.

 

"Maski 32 percent pa rin ang tax system namin, maraming loopholes, ang daming deductions. Bago ka makarating sa 32 (percent), ang dami mo nang dine-duct, so effectively, mas mababa 'yun sa 32 percent," she said.

 

In a separate interview with economist and UP professor Solita "Winnie" Monsod, she added that the tax rate remains high because "maraming hindi nagbabayad."

 

"Kung lahat lang nagbabayad, sobra sobra ho ang makokolekta natin," she said. "Kaya 'yung kaunting nagbabayad ng tama, sila ang nagsu-support ng economy natin."

 

Old requirements, new strictness

 

Henares and the BIR earned boos and brickbats from taxpayers again recently, who complained about the agency's online filing system, which showed glitches as they rushed to beat the April 15 deadline.

 

She said the eFiling and Payment System (eFPS) has been in place since 1998, but was not strictly followed.

 

"'Yung mandate ng eFPS, matagal na ho 'yan, hindi lang sinusunod. Kakaunti lang 'yung last September natin minandate... Nagiging strikto lang ho tayo doon," she said.

 

She added: "'Yung eBIR form online, sabi ko nga ho, lahat ng sistema, hindi naman ho perfecto. Kung lahat kayo sabay sabay sa oras, same time, talagang [may glitches]."

 

She said a troubleshooting guide was included in Annex D of Revenue Memorandum Circular 14-2015, telling people they could send forms in by email.

 

In her interview with Monsod, Henares admitted the system is not compatible with Mac computers, and only for certain Windows systems, since it was developed with businesses in mind.

She said owners tend to still buy Windows computers for their offices.

 

She added that even they in government still use Window computers since "masisilip tayo ng COA (Commission on Audit) kapag bumili tayo ng Mac."

 

"Every day, kailangan namin i-improve. Kaya nga 'yung version ng eBIR online, sa ngayon, 4.7.008 na. As we go along, we update it."

 

In its Revenue Regulation No. 5-2015, issued on March 15, selected taxpayers were directed to file their ITRs using the Electronic Bureau of Internal Revenue Forms (eBIRForms).

 

Among those required to use the eBIRForms are accredited tax agents and practitioners and their client-taxpayers, accredited printers of principal and supplementary receipts, one-time transaction taxpayers, and those filing "no payment" returns.

Also covered by Revenue Regulation No. 5-2015 are government owned and controlled corporations, local government units, cooperatives registered with National Electricfication Administration and those registered with the Local Water Utilities Administration.

 

Under the order, failure to file ITRs online carries a penalty of P1,000 per return and 25 percent of the tax due.

 

Henares clarified that those with "no-payment" returns that fall under these categories must have filed manually on Wednesday. They will then have to re-file online on or before June 15.

 

'There's due process and we have to follow that'

 

In her five years as top tax collector, Henares has given the BIR a repuation for being strict, notably for the Run After Tax Evaders program, a brainchild of the Arroyo administration that got its much-needed boost from the Aquino administration.

 

As of Tuesday, the BIR has around 364 cases in varying stages against tax evaders, Henares said. Of those, only "two to three" have seen resolution.

She said "less than 100" are with the courts, while the rest are still before the Department of Justice.

 

"There are cases with the court, cases undergoing trial, and the other cases are under preliminary investigation, or tapos na and is for resolution," she said.

 

Asked if she was satisfied with the pace, she quipped, "Wala naman ho akong magagawa."

 

She added: "There's due process and we have to follow that."

 

As for the stricter implementation of the system, including a name-and-shame campaign, Henares said "it has contributed" to the growth of revenues, though the BIR does not yet know by how much.

 

"'Yung RATE po ay kasama sa pagbibigay ng message na seryoso kami," she said. 

 

With a little over 14 months left before the end of the Aquino administration, Henares said that working in the public sector is hard work. 

 

"Walang madaling trabaho. Mas malaking responsibilidad ito kasi ikaw ang magpopondo sa proyekto ng gobyerno," she said. — JDS/JST, GMA News