BIR narrowly missed tax goal in August despite higher tax take


BIR Commissioner Kim Jacinto-Henares. INQUIRER FILE PHOTO

Tax collection by the Bureau of Internal Revenue grew by more than 20 percent in August from a year ago, but fell marginally short of the goal for the month.

The year-on-year increase was credited to tighter audits that were meant to better detect tax evasion and under-declarations of income.

The Department of Finance, the parent agency of the BIR, on Monday reported that tax collection by the tax bureau reached P118.11 billion in August, up by 22 percent from P96.76 billion in the same month last year.

The goal for the month was set at P118.48 billion.

The latest performance brought the BIR’s total collection for the first eight months of the year to P811.92 billion, up by nearly 16 percent from P701.44 billion in the same period last year.

This eight-month collection, however, was 3-percent short of the P839.5 billion target for the period.

The BIR, nonetheless, said its full-year collection target of P1.253 trillion remained attainable.

Accounting for about 60 percent of the national government’s revenues, the BIR is under pressure to meet its goal to help finance the state’s expenditure program.

Finance officials have set the budget deficit ceiling for this year at P238 billion, or 2 percent of the projected gross domestic product for the year.

This year’s revenue target of the BIR is nearly 18-percent higher than its actual collection of P1.066 trillion last year. Last year was the first time that the bureau’s collection breached the P1-trillion mark.

Revenue Commissioner Kim Henares earlier said the tax bureau would continue with its anti-tax evasion programs in order to meet the full-year target.

One of the programs is an ad campaign against tax evasion, where it publishes list of companies and commercial establishments per industry that pay the highest and the lowest amounts of taxes.

Another is the Run After Tax Evaders (RATE) program, under which tax evasion cases are filed every two weeks.

The World Bank said in a report last week that the government had to continue increasing its tax collections in order to afford vital development projects, led by infrastructure.

Poor infrastructure has often been cited by economists for dragging down the Philippines’ competitiveness in attracting foreign direct investments.

The World Bank has estimated that around P450 billion in potential government revenues is lost every year due to tax evasion and under-declaration of incomes.

It has challenged the Philippine government to further intensify its drive against tax evasion so that it can trim revenues losses by half.

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  • PinoyPower1

    Wow! 20% higher compared to last year is huge improvement!

  • f1jeepney

    taena nyo. kayo din kumukulimbat nyan! malaki pa take home nyo kesa gobyerno.

  • surigao

    The people of the Philippines will honestly pay their taxes if the government will handle these money accordingly, it sad to note that as of 2013-even in the Aquino administration, theses taxes paid by us, still in the oblivion-not really clear on how this money will be fully safe guarded to those hand who wants to dip into and get some shares without sweating…

    If the Filipinos are 100% given an assurance that these money will returning back in good fate. I am pretty sure each Filipinos will honestly abide in paying the taxes. IN return, it will bounce back-as a develop Philippines–but if not—same thing will happen–there are ghost business men/women in the philippines.

  • pilipino_ako6

    It will be difficult for BIR to meet its target as long as people do not pay the correct taxes. Others do not even pay any taxes. Let us help our government by demanding official receipts for services rendered like from professionals and for the purchase of goods. Many issue only invoices or delivery receipts. Take a photo of these documents and send to BIR or post through social media.

  • john_constantine

    jtclassic at unokritiko: Ano ba plano niyo? Itatax pa ng BIR ang perang kinupit ng mga politico?

    Ang kasalanan nila ay ang pagnanakaw ng pera in the first place. It doesn’t matter kung nagbayad sila ng tax sa ninakaw/kinupit nila, that isn’t even the issue.

  • unokritiko

    About pork barrel scam,i am just wondering, big wonder why the BIR does not even bulge into this mess.
    they dont even have any study or even parallel investigation into this mess.
    very wondering>>henares should resign and all the BIR staff for negligence and palusot sa mga taong ito.
    nakakasuka ang opisinang ito and yet they are very strict to other personalities.

    • john_constantine

      Lol. They are the BIR. They collect taxes and only investigate tax collection related scams. May delineation ang roles ng mga government offices. Very typical naman yang ‘resign’ solution mo. Parang mga leftists lang pag makapag kritiko sa mga incumbent, laging resign agad panawagan.

      • jtclassic

        The pork barrel is tax-related, that is, if the BIR wants it to be. If senators pocketed money, it’s both a criminal act and a tax-related act. I remember a press conference Kim Henares held once, where she explained that if you receive anything (e.g., a donation, an inheritance), it’s taxable. If you take money and don’t declare it, it’s still taxable (e.g., the BIR’s cases against doctors, businessmen, actors). That makes the pork barrel taxable, if it’s proven that it was pocketed by a legislator.

        So it’s still tax-related.

      • john_constantine

        There are a lot of ifs in your response. So the answer is not really. IT’s tax related in the sense that the Pork Barrel is our taxes and the BIR collected it. It is another government institution that allocates it for spending (DBM), and it’s another institution that audits the spending (COA). Second point I wish to make is the pork barrel is government spending – as ‘managed’ by politicos. Wala yata tax pag gobyerno nakikipagtransact (i.e. naglalabas ng pera) since if ever there is tax on government spending, the tax will just go back to the government (which does not make sense).

      • jtclassic

        If it’s pocketed by legislators (as I said in my earlier post), it’s tax-related. That’s the point. The BIR could consider it undeclared income. There can be both criminal liability and tax liability.

      • john_constantine

        That is if you consider that “income”. It is not.

      • jtclassic

        Remember Al Capone. Nuff said.

      • john_constantine

        Al capone had declared ‘businesses’ and he got convicted of tax evasion and failing to file his ITR because they could not convict him of his other crimes. They had records of his business dealings. How is that simillar to the politicos getting their kickbacks?

      • unokritiko

        if its not an income then what do you call it.
        It is still taxable where ever you get it from. Kayamanan nga na nahukay mo may tax pa iyan pa na galing sa anomalyia>Huwag ng mag palusot igan.

      • john_constantine

        Dude, hindi yan palusot. How can you make the BIR charge income tax on money that the politicos pocketed? Hindi nila yan idedeclare na income. In fact hindi nila yan idedeclare kahit saan. Ano ngayon ang magiging basis for computing tax or tax evasion? Best you can suggest is a lifestyle check na ginagawa sa BOC or maybe check money laundering activities thru AMLA maybe. Those are not the responsibility of the BIR anymore.

        Magisip isip pa kayo ng malalim.

        Also ninakaw nila ang pera and let’s say dineclare nila na income tapos/pero nagbayad ng tax, ano pa hahabulin ng BIR diyan? Ang root sin nila ay pagnanakaw ng pera hindi ang pag tax evade.

      • unokritiko

        I can do nothing if your think tank is like, thats why the country becomes poorer and at the tail of other developing country. A BIR corrupt employee thinks similar to what you wrote.
        Seems you apply a logic here kung galing sa nakaw at nagbayad ng tax hindi siya hahabulin but is hard evidence that money come for the loot. Does the BIR helps? yes it cornered the money that it really come from the loot.

      • john_constantine

        My point: paano hahabulin ng BIR ang mga politikong nangamkam ng pera? Ano magiging ebidensiya? And finally, mandato ba ng BIR ang maghabol ng mga politikong nangamkam ng pera? Sure BIR ang nangolekta ng mga kinamkam. Pero kanina ko pa sinasabi na hindi na mandato ng BIR ang maghabol ng mga plunderers. Ang alam ko lang na hinahabol nila mga hindi nagbabayad ng tamang buwis.

        At bago mo iinsist ulit na yung kinamkam nila ay “valid” source of income — paano nga? e kinupit nga yun? Ibang kaso ang plunder at graft sa tax evasion — tax evasion lang ang kayang habulin ng BIR. Period.

      • unokritiko

        ay naku hindi mo pala naiintindihan, I am saying that the loot does becomes “valid source of income” meaning talagang kinikita nila according to the law of the land. My point here is that the bir had cornered the loot to be not included in thier source of income. And this evidence will have more weight adding to the plunder charge. In coronas case the bir is main reason why he has a guilty verdict. Maybe you were not born yet during the corona case. totoy.

      • john_constantine

        Hindi nga siya “valid source of income”, in the first place, hindi yan ililista ng mga politico as income, e Nakaw nga e. Ano gagawin nila? Idedeclare nila “oi nangupit ako ng 10M, magkano tax ko ?” Might as well tax bank robbers and holduppers kung ganun.

      • unokritiko

        palulusutin mo pa ba ang taong nagtutulog tulogan sa kanyang tungkulin. ibg sabihin nito ay may kinikilingan siya kaya hindi makakilos.
        o di kaya grabe na ang anomalyia sa
        BIR na hindi niya na kaya. Wag natin palusutin ang mga taong ganito .
        tingnan mo na lang sa BOC dapat sibak na yan si biazon na hanggang
        ngayon namamayagpag ang corruption sa BOC

      • john_constantine

        Actually, if you read the news item na wala ka iniisip na iba, it is actually a positive/good news. Tumaas ang collection nila and they say they are set to reach their overall targets. Nagset sila ng target pero di nila nameet ang target nila. If you’re the manager/head, this should be a lesson to adjust to the realities and also adjust your targets to realistic levels. Inspect and adapt kumbaga. To me this news item is a good indicator that they are getting some good work done IF their numbers are true that is.

    • wafu

      di nila trabaho un brad, kung lahat iintindihin nila, lahat yan walang mararating

      lol resign

      • unokritiko

        napaka waf waf ng iyong brain, for sure they have some kickbacks regarding this mess in their pockets. now when corona is put on trial this office immediately take an action not like on this mess which she waiting an order form the higher ups.
        Now even the kayamanan na nadiskubre ng isang tao ay may pataw ng tax. ito pa kaya na pinaka tagotago nila para di malaman ng publico.
        Kung di nila trabaho yan pero tintrabaho nila ang mga engineers, doctors at mga liars na sa akin palagay ay tama lang. Eh palagay ko may kinikilingan ang BIR. which is not supposed to be.

    • HoyGago

      Pwede yan kung maestablish na may perang napunta sa mga kawatan. Yun ang pinupunterya ngayon ng NBI at DOJ. Once that’s established, trabaho ng DOJ na ipasa sa Ombudsman, at Ombudsman ang magfile sa Sandiganbayan.

      At the point where the government can establish that the thieves earned money, pwede na pumasok ang BIR. That would be when the Ombudsman files informations to the Sandiganbayan.

      But why would we need the BIR to file a tax evasion case? In the Al Capone case, tax evasion was used as a last resort to secure conviction and imprisonment. Judging from the evidence we know of, the government has a strong case for plunder that we do not need to bother the BIR with the filing for tax evasion.

      • unokritiko

        It is not about tax evasion case, and you are too far from my point. In this case like the corona case the bir should check in parallel their saln if they truly adhere to the amount in their respective saln during that period, then if there is something wrong this shenanigan has more problems adding to the plunder case. I want this BIR office to do like in the corona case. I think you were no born yet during proceeding of corona case.

      • HoyGago

        In the Corona case, the BIR predicated their actions from the revelations during the impeachment trial. In other words, nakagalaw lamang ang BIR pagkatapos ng Corona trial, where Corona admitted to undeclared income.

        Kung gagamitin natin ang lohika, makakapasok lang ang BIR sa pork barrel scam pagkatapos magkaroon ng pruweba na nagkaroon nga ng income ang mga kawatan. So hihintayin talaga ng BIR ang findings ng Ombudsman bago siya gumalaw.

        Pwede rin siguro siyang gumalaw moto proprio, pero bakit nga niya gagawin yun, kung ang filing ng income tax evasion ay last resort gayong malakas ang ebidensya ng gobyerno?

        Bottom line, it’s premature and unwarranted for the BIR to get involved.

  • Karabkatab

    BIR is sure to miss its tax target year in and year out because a lot of examiners and officers in its Large Taxpayer department are the tax consultants of large corporations. What they do is depress and conceal the figures to the advantage of large taxpayers. This is not a new trick. These SOBs are dancing the same tune a long time ago.

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