Oplan Kandado to continue under new BIR chief

MANILA, Philippines - The new head of the Bureau of Internal Revenue (BIR) will continue the Oplan Kandado program put in place by his predecessor Sixto Esquivias IV.

“We will still implement that,” BIR Commissioner Joel Tan-Torres said.

Tan-Torres has assumed the functions of BIR chief pending President Arroyo’s appointment of a replacement for Esquivias.

Esquivias resigned last month amid intense pressure over the agency’s large shortfall in tax collection.

Tan-Torres said the Oplan Kandado program has helped generate revenues for the agency and may very well continue.

However, businesses have opposed the program, saying that it discourages the development of entrepreneurship in the country.

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

Launched in January this year, the Oplan Kandado program has seen the temporary closure of more than 230 establishments found to be violating the Tax Code.

As such, the BIR has raised more than P72 million in additional revenues from the implementation of the program nationwide.

The BIR believes the program is successful as its encourages voluntary compliance, fight tax evasion and enhance revenue collections.

Aside from Oplan Kandado, Tan-Torres earlier unveiled that the agency would slap a five percent withholding tax on all campaign expenditures and impose taxes on Christmas bazaars or the so-called tiangges.