BIR adopts benchmarking method in monitoring tax payments
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.