BIR sees double-digit surge in ’12 tax take

The BIR sees an increase of 15 percent in tax collection next year from this year’s expected P193 billion.

The Bureau of Internal Revenue expects to collect P222.3 billion in individual income tax next year—an increase of 15 percent from the P192.7 billion anticipated for 2011.

The BIR said in a statement that improved tax compliance among professionals would boost collections to a double-digit figure next year.

According to Deputy Commissioner Estela V. Sales, the BIR hopes that the agency’s Run after Tax Evaders (RATE) program will encourage people to be vigilant and report those who do not pay the right taxes.

Sales added the RATE program “scored significant gains” this year, with the filing of high-profile cases.

“In the past, the agency’s batting average at the Department of Justice (where the BIR files its complaints before the cases could go to court) was dismal,” she said. These days, “the number of cases that reach the Court of Tax Appeals is much higher.”

Since July 2010, the BIR has filed 83 cases involving P35.76 billion worth of liabilities. In 2011 alone, the BIR filed 59 tax cases involving P22.6 billion. The DoJ already decided on 19 of the cases, 16 of which were in favor of the BIR.

Citing data from the Professional Regulation Commission, the BIR said there were about three million professionals in the country, including nurses, engineers and seamen. Those with high incomes, such as doctors and lawyers, number around 190,000.

At least 20 percent of the BIR’s yearly take comes from individual income taxes. Bulk of the tax payments comes from individuals whose tax payments are withheld by their employers.