BIR targets 20% rise in income tax take
The Bureau of Internal Revenue is aiming for a 20-percent improvement in its collection of income tax from individuals this year to P192 billion.
Internal Revenue Commissioner Kim S. Henares said in a statement that collections are expected to shoot up with an increase in the tax filings and declarations of professionals like doctors and lawyers “who are now more compelled to file proper taxes.”
Henares said the BIR has been coordinating with the Professional Regulation Commission under its “Run after Tax Evaders” program.
Citing data from the PRC, Henares said there are some three million professionals in the country including nurses, engineers and seamen.
Those with higher incomes such as doctors and lawyers number around 190,000, Henares added.
The BIR chief said individual income taxes account for about 32 percent of the BIR’s collection of taxes on net income and profits.
However, the bulk of the individual income tax payments comes from individuals earning compensation income whose tax payments are withheld by their employers, instead of professionals who generally earn more than employees.
Henares said the BIR has held meetings with several professional associations from doctors, lawyers, accountants and dentists to find ways to shore up tax payments.
“We are asking them to police their ranks [considering that] their oaths require them to uphold the laws—including tax laws—in the places where they practice,” she said.
“Tax compliance among professionals has been low,” Henares added. “Maybe the associations can campaign to their members because their behavior is not acceptable and we will sanction individuals.”
President Aquino took note of the high incidence of tax evasion among professionals in his State of the Nation Address last July, saying that actual income tax payments from professionals account for a monthly average of just P8,500.
Early this year, Henares said the BIR expects to grow its full-year collection by at least 14 percent from some P822 billion raised in 2010.
According to the Department of Finance, the BIR’s parent agency, the bureau is tasked to raise at least P940 billion in 2011.
