MANILA, Philippines - The Bureau of Internal Revenue (BIR), the government’s main revenue agency, seeks to collect P222.28 billion in individual income tax in 2012, Commissioner Kim Henares said yesterday.
Henares said this reflects a 15-percent growth from the P192.72-billion individual income tax target for this year.
The agency expects more self-employed professionals to comply with the tax rules next year.
According to the BIR, individual income taxes account for over a fifth of the agency’s tax collection.
Bulk of the income tax collections come from salaried individuals. Under the BIR system, employers automatically withheld income taxes of salaried individuals.
For her part, BIR deputy commissioner Estela Sales said she is hopeful that the agency’s Run After Tax Evaders, (RATE) its anti-tax evasion program, would encourage people to be vigilant and report those who do not pay the right taxes.
The RATE program scored significant gains this year, especially on high profile cases.
“We’re proud of our accomplishments. In the past, the agency’s batting average at the Department of Justice (DOJ) was dismal if you look at the number of cases that actually make it to the courts. Now, the increase in the number of cases that reach the Court of Tax Appeals is much higher,” Sales said.
According to the latest data from the BIR, the agency has already filed before the Justice Department 83 tax cases worth P35.76 billion since the start of the Aquino administration.
Of the 83, 19 have already been resolved by the DOJ.
Of those that have been resolved, 87 percent have been decided in favor of the BIR.
This year alone, the BIR has filed 59 tax cases at the DOJ worth P22.6 billion.
The BIR has been filing cases against self-employed professionals as it noted that the incidence of tax evasion is in this sector.
Citing data from the Professional Regulation Commission, the BIR said there are some three million registered professionals in the country.
Of the three million, there are around 190,000 doctors and lawyers who charge higher fees and have higher incomes.
“The average annual income tax payments of professionals, however, average less than the monthly minimum wage of P8,500,” the BIR said.
This year, the BIR hopes to collect P940 billion and P1.066 trillion in 2012.