BIR eyes P8.7B from 65 tax cases won in 2007

The Bureau of Internal Revenue (BIR) has won 65 of the 76 tax assessment cases it filed in different courts last year resulting in a potential tax collection of roughly P8.7 billion, Internal Revenue deputy commissioner for legal and inspection group Gregorio Cabantac said.

He also said the agency also earned an additional P641 million in potential savings after 27 refund cases filed against the BIR has been denied.

Cabantac said the different cases have been decided by the Court of Tax Appeals, Court of Appeals (CA), Supreme Court (SC), Department of Justice (DOJ) and the different Regional Trial Courts (RTCs).

“With this accomplishment, our legal team has shown a very encouraging 86 percent batting average in cases resolved in favor of the BIR,” Cabantac said.

He said this is a success rate that is 11 percent higher than the agency’s 2006 accomplishments.

In 2006, Cabantac’s Legal Group was able to win 75 percent of its 48 tax assessment and refund cases, translating to P7.9 billion tax collectibles and tax savings for the agency.

He assured that the agency is stepping up efforts to combat tax evasion as part of the implementation of the BIR’s Run After Tax Evaders Program or RATE.

In December 2007, for instance, the BIR won a P3.7-billion tax evasion case against a major bank.

The BIR, the government’s main revenue earner, is tasked to collect P845 billion this year. Last year, its collections reached P711 billion or below the target of P765 billion.