Santiago to probe BIR's large taxpayers' unit

MANILA, Philippines -  Sen. Miriam Defensor-Santiago, chairman of the Senate economic affairs committee, said she would hold public hearings on alleged anomalies in the collection of taxes by the Large Taxpayers Service (LTS) unit of the Bureau of Internal Revenue.

Santiago said she would summon the top 20 large taxpayers in the country to the Senate hearing to shed light on charges of inefficiency and corruption in the LTS division of the BIR.

In Senate Resolution No. 1266, Santiago said anomalies pervading the collection system of the LTS impact significantly on the BIR’s collection performance.

For the first half of 2009, the BIR collected P375.6 billion, which was P12.8 billion lower than its target.

The LTS monitors and analyzes the tax payments of large taxpayers, which include the top 1,000 corporations in the country. Large taxpayers are those with a net worth of at least P300 million, and pay an annual income tax and withholding tax of at least P1 million.

Santiago said it was imperative for the government to initiate reforms in the system of revenue collection since tax policy in a developing country constitutes an essential part of development policy.

“It is widely recognized that economic development needs to be complemented by progress in the area of tax administration,” Santiago said.