BIR eyes P319.56 B from corporate taxes

MANILA, Philippines - The Bureau of Internal Revenue (BIR), the government’s main revenue agency, is eyeing to collect P319.56 billion from taxes on corporate income and profits this year, up 14 percent from last year’s P280 billion.

BIR Commissioner Kim Henares said higher revenues would come in as the agency continues to strengthen its Run After Tax Evaders (RATE) program.

Under the program, the government files charges against tax evaders before the Department of Justice (DOJ).

Since the start of the Aquino administration, the BIR has so far filed a total of 67 tax evasion cases with total claims estimated at over P29 billion.

The BIR files tax evasion cases after gathering evidence from third party information, whistleblowers, delinquent accounts, taxpayer’s lifestyle check system, Congressional investigations and pending cases at the Department of Justice.

In the area of value-added tax (VAT) collections, the BIR also expects an almost 14-percent growth to P196.23 billion from P172.21 billion a year ago.

To improve VAT collections, the government is going after a group believed to be attacking the VAT system by selling fake receipts of legitimate businesses.

“The VAT system has helped improved the BIR’s ability to track erring taxpayers because it provides a paper trail. VAT registered taxpayers provide the BIR with a list of their suppliers and their tax payments.

Big companies declare their suppliers and the VAT payments credited to them. In several cases, it was the VAT trail that led to the filing of tax evasion cases against celebrity endorsers because companies submit the names of their suppliers and the amount of their transactions with them,” the BIR said.

According to the BIR, the very first RATE case under the Aquino administration was the case against pawnshop owner William Villarica.

The case was filed as a result of a lifestyle check system. Data gathered by the BIR showed that while Villarica did not pay income taxes from 1998 to 2009 claiming that he has not been earning money, he was able to purchase a Lamborghini sports car in 2007 for P26 million.

“In addition to the Lamborghini, he also owned a Ferrari and four other vehicles,” the BIR said.