BIR adopts benchmarking method in monitoring tax payments

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BIR Regional Director Nestor Valeroso

MANILA, Philippines—In a move to hit the tax collection target for the year, the Bureau of Internal Revenue (BIR) has adopted a new strategy dubbed as “benchmarking method,” which was proven effective even in other countries.

In an exclusive interview, BIR Regional Director Nestor Valeroso of RR-8 Makati said that the agency has instituted the said strategy so that tax collection would increase each year.

“We want to inform you that we strengthened our voluntary compliance so that our collection will no longer be a roller coaster mode, because we want tax collection that is always be on the level of going up,” Valeroso said.

He explained that under the said method, the performance level of taxpayers in a specific industry is being determined and compared, a way to monitor tax payments.

To institutionalize the benchmarking strategy, BIR had issued Revenue Memorandum Order No. 4-2006 wherein top 200 tax payers of each industry per district office based on gross sales will be covered by the benchmarking activities.

Valeroso said that the method is now in its full implementation all throughout the country adding that this is “one way of hitting the target.”

“Our estimated goal for the year is P101 billion. We want to exceed that goal through this program, that is in Makati region alone, in national level, the goal is P166 trillion,” he added.

Through benchmarking method, Revenue District Offices (RDOs) like the Makati District, would be able to easily identify taxpayers who are declaring Income Tax and net Value dues lower than the minimum amount set per industry group.

Benchmark is a point of reference for measurement or a set of standard to be used to measure the performance/compliance of taxpayers in particular industry.

The BIR Makati district has launched the “Roadshow on Benchmarking Program” attended by some higher officials of the bureau  , BIR Regional Director Nestor Valeroso, Asst. Director Manuel Mapoy, DepCom Legal Atty Sales  , DepCom Human Resources Atty Celia King , DepCom for Operations Nelson Aspe , Revenue District Officers (RDO) headed by Ricardo Espiritu, RDO-50 Makati and some division chiefs and staff.

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  • uma_asa_pa

    dapat gumawa sila ng batas na lahat ng professional services ay computerised ang resibo at magtayo ng call centre ang BIR (more jobs) na puwedeng pagsumbungan nung mga professional na hindi nag bibigay ng resibo at nag threat na idadagdag ang VAT.

    Sa mga commercial at tindahan, dapat computerise din ang pagbigay recibo pero dapat mag set ng minimum monthly/annual gross sales figure ang BIR bago sila i require ng computer.

  • SignTheWaiverNow

    You stup id BIR idi ots!
    You fuking don’t need any benchmarking or whatever tools in the universe… just fuking make ur taxes simplier!
    With too complicated taxation, people would rather avoid paying at all! morons!

  • http://www.facebook.com/george.bull.7 George Bull

    More tax collections = More money for politicians and government officials to steal

  • tanga_hanga_ni_abnoy

    meron ako ditong BI tool..it can easily pinpoint/red flag indicators that may suggest tax cheaters..isa lang cgurado ko..kaming mga namamasukan lang ang mejo nasisisngil ng tama at actually, d p namin tanggap sweldo bawas n ang tax

  • http://twitter.com/Negastarr NegaStarr

    Will work only in an environment where economy’s improving. If economy nosedives, benchmarking will not work and will serve to penalize ailing or distressed companies.

    • redkinoko

      Benchmarking is a tool only used for identifying hotspots auditors should be investigating. It’s not a policy in itself.

  • redkinoko

    Good move. This oughta be effective in rooting out all those doctors lawyers and other professionals who don’t like working with receipts. :)

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