BIR raises P90 million from 'Oplan Kandado'

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has so far raised roughly P90 million from its ‘Oplan Kandado’ program, a ranking official said yesterday.

BIR Deputy Commissioner Nelson Aspe said revenues from the program have reached roughly P90 million as of end-July. The amount was raised from direct penalties on establishments found to have tax deficiencies.

“We already raised almost P90 million in penalties,” Aspe told reporters.

He stressed that the overall impact of the program is that it has translated into improved compliance among taxpayers. There’s also improved collections in value added tax (VAT) collection from April to June, he added.

“The program is continuously pursued as a means of enhancing voluntary compliance,” he noted.

He said more than 70 business establishments have already been closed as of end-July and at least 20 more are scheduled to be padlocked.

The BIR, the government’s main revenue earner, has become aggressive with its ‘Oplan Kandado’ program as it is under heavy pressure to meet its revised collection target of P798.5 billion for 2009.

Under the program, business operations of non-compliant taxpayers will be suspended and their establishments will be temporarily closed if they are found to have violated certain tax laws.

Under the program, grounds for closure include failure to file a value-added tax (VAT) return, understating taxable sales or receipts by 30 percent more of the correct amount in the case of a VAT-registered taxpayer or failure to register the business.

Furthermore, the memorandum order stipulates that the closure of a business establishment shall last for at least five days and shall be in force until the taxpayer rectifies the violation.

The closure order shall only be lifted by the BIR when there has been subsequent filing or amendment of returns with the payment of the tax as well as penalties.

The BIR collected only P57.6 billion in June, or 9.2 percent lower than the P63.4 billion recorded in the same month last year, latest data from the agency show.

The June collection brought the first half collections of the BIR to P433.2 billion or 4.4 percent below the P453.2 billion generated in the same period last year.