MANILA, Philippines – The Bureau of Internal Revenue has identified 27 priority programs this year to shore up collections and meet its revenue target of P1.7 trillion.
The BIR missed last year’s collection goal of P1.45 trillion, which was based on the assumption that the economy would grow by 6.5 to 7.5 percent.
Gross domestic product grew by only 5.8 percent in the nine months to September 2014 on anemic public spending.
One such initiative is the establishment of an online system for transfer tax transactions to expedite processing of one-time transactions, issuance of certificate of Certificate Authorizing Registration (CAR) and boost collections. This program aims to provide a facility for BIR officers to review and approve online the one-time transactions filed by taxpayers.
One-time transaction includes not only transfer of real properties and stocks not traded in the stock exchange but also transfer of properties in connection with estate tax and donor’s tax.
The BIR also plans to put in place a web-based system that generates the CAR with barcode and electronically transmits data to Land Registration Authority. This is expected to eliminate or reduce revenue losses from all trips of transfer tax transactions.
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An online system for accreditation importers and customs brokers will likewise be adopted. This will automate the manual accreditation process from the filing of application to the issuance of importers/brokers clearance certificate.
The BIR shall also put in place a system that will automatically compute the earmarked shares of the local government units and other government agencies-beneficiaries of the internal revenue tax collections. This system will expedite data generations and validation to ensure quality of data.
Aside from these, the BIR will adopt a new process for the electronic exchange of information/data between the BIR and the BTR with respect to collections and the remittances of internal revenue taxes across all collection channels.
A web-based facility will likewise be installed to enable the BIR to automatically create and update its database of absolutely forfeited properties, and monitor the handling of forfeited properties from the time of absolute forfeiture up to final disposition.
For improved tax transparency and international tax compliance, the BIR will continue to forge agreements calling for automatic exchange of financial account information with other tax authorities overseas. This information will assist revenue officers in building up a case whether in a simple tax audit or a tax fraud case.