BIR plans to expand tax amnesty program

The Bureau of Internal Revenue (BIR) plans to expand a form of tax amnesty being offered to delinquent taxpayers alongside other initiatives aimed at making it easier to pay taxes and hit the P2.026-trillion collections target for this year.

Finance Secretary Carlos G. Dominguez III, for his part, wants the BIR’s Large Taxpayers Service (LTS) reorganized to cover more personalities as well as firms.

According to a presentation during the BIR’s 112th anniversary celebration Monday, the country’s biggest tax-collection agency responsible for three-fourths of government revenues is looking at expanding its compromise settlement program, but BIR officials did not elaborate.

In a meeting with the BIR last month, business groups pitched tax amnesty, as well as raised pending issues when dealing with the agency, including tax simplification, suspension of audit, simplification of requirements for clearances/permits, revenue regulations with impact on their businesses, renewal of registration for tax exemption, and policies on storage of documents.

In response, BIR Commissioner Caesar Dulay had told the Inquirer that “we will listen and study their proposals and, if necessary, sit down with their study group to ensure full discussion on the merits or demerits of their proposals.”

As for LTS, Dominguez said “the BIR can reorganize the large taxpayers unit responsible for the bulk of collections.”

“I cannot imagine that we only have 2,800 so-called  ‘large taxpayers.’ The numbers should at least be double that,” Dominguez said.

The BIR defines large taxpayers as corporations with authorized capitalization of at least P300 million registered with the Securities and Exchange Commission; multinational enterprises with authorized capitalization or assigned capital of at least P300 million; publicly listed corporations; universal, commercial and foreign banks; taxpayers with an authorized capitalization of at least P100 million belonging to the banking, insurance, petroleum, telecommunications, utilities, alcohol and tobacco industries; and corporate taxpayers engaged in production of metallic minerals.

This year, the LTS was tasked to collect P1.2 trillion, to account for 62 percent of the BIR’s tax take.