Complete overhaul of BIR, Customs set-ups urged

Former Internal Revenue Commissioner Liwayway Vinzons-Chato is batting for the overhaul of the organization structures of the Bureaus of Internal Revenue and Customs to make these agencies more efficient and responsive to the requirements of a growing economy.

Chato told The STAR that her priority legislation, if elected as senator, would be to ensure that the structures of the BIR and BoC are overhauled completely and converted into an authority with the status of a government-owned or controlled corporation, or even a private company.

By so doing, she said an authority will become more target-oriented, attract more professionals who are driven by a collective purpose, and computerize the system better and faster. Moreover, the Authority could be rewarded with a certain percentage of the excess collection to ensure more efficient services on a continuing basis.

In the sixties, she said, the internal revenue service (IRS) of the United States was just a bureau with all its inherent inefficiencies and corruption. When the structure was changed to the IRS – making it perform like a corporation – the corruption was drastically reduced and the service was professionalized.

Chato said she also favored simplifying the tax system and making the operations of the collection units as transparent as possible and to reduce the discretionary powers of the people in the field. This can be done by going full blast with the computerization program and making sure that the entire system is interlinked.

She said that during her time at the BIR, she already proposed these changes in the structure, the tax system and the profile and operations of the agency to President Ramos and some members of Congress. But her proposals did not prosper.

Chato said as early as the impeachment trial, she was invited by then Vice President Gloria Macapagal-Arroyo to head the BIR but she did not accept because she would be inheriting the same defective structure and collection system, which would make the good intentions of whoever would head it fail.

As envisoned, the BIR and BoC, which Chato said would be better off being joined under one umbrella, will be an independent authority to be chaired by the Secretary of the Department of Finance. But it will be run by a board of directors.

Chato said what these collection agencies need at the moment are leaders who have established values which then become corporate values. She quickly clarified that she is not biased about corporations since some companies also have corruption in their organizations.

Chato lamented that since the Estrada administration took over, the BIR and Customs suffered sharp declines in their collection efforts, which resulted in budgetary deficits that reached P230 billion when the Arroyo administration took over in January 2001.

During her time as commissioner, she said, the bureau managed to surpass its goals for five years, which is why the Ramos administration enjoyed surpluses until it bowed out in 1998.

On the issue that collection goals were being made without any consultation with the commissioners of BIR and BoC, Chato said "during my time, I was never consulted and I did not make an excuse of the high targets given to me. I just delivered."

She explained that the collection targets are being made by the Development Budget Coordinating Council on the basis of projected growths of the GDP (gross domestic product) and GNP (gross national product), which is what is also being practiced in all countries in the world.

"If we must consult with the heads of BIR and BoC regarding their concept of achievable collection target, they would naturally ask for less and what happens to the country’s growth then," Chato asked.