Revenue men in hot pursuit of tax cheats

The Bureau of Internal Revenue will zero in on more goods and services suppliers to government agencies as it steps up its effort to run after tax cheats and shore up collection.

Revenue Commissioner Kim Henares said it would be easier to track down erring government suppliers because of the relative ease of gathering data from other line agencies.

Henares also said that it is only right to check on private firms that generate income from public expenditures and see if they are paying the right taxes.

“The government, which has a budget of over P1 trillion for this year, is one of the biggest movers of the economy. A substantial portion of this budget goes to procurement, which means suppliers are generating income and corresponding taxes, therefore, should be remitted,” Henares told the Inquirer.

Last Thursday, the BIR filed a tax evasion case against a supplier of office supplies to the Philippine National Police. Also charged was the supplier’s accountant.

To root out the tax cheats, the BIR matches reports on spending and creditable withholding tax submitted by state entities to the income tax returns filed by their suppliers.

The bureau then files the appropriate charges against the suspects under its Run After Tax Evaders (RATE) program.

The BIR accounts for more than half of the government’s revenue collection. It has implemented administrative measures to meet its tax collection target for the year and help ensure that the government stays within its budget limit.

For 2013, the BIR is supposed to collect P1.25 trillion. The government on the other hand must see to it that its budget deficit must not exceed P238 billion.

This year’s budget deficit ceiling is equivalent to 2 percent of the projected gross domestic product. Last year, the deficit stood at 2.3 percent of GDP.

Finance officials consider a 2-percent deficit-to-GDP ratio to be comfortable. They said the relatively healthy fiscal position of the government helped in earning an investment grade for the Philippines. Michelle V. Remo