BIR misses May collection goal

MANILA, Philippines - The Bureau of Internal Revenue (BIR) collected P95.55 billion in May, missing its revenue target for the month by 8.5 percent partly because some large taxpayers reported lower sales.

The BIR was tasked to collect P104.475 billion in May.

However, compared to last year’s performance, the BIR’s May revenues were up by P6.4 billion or 7.26 percent.

The latest figure brought the January to May collections to P440.81 billion, 12.46 percent higher than last year’s figure.

The agency said that collections from the BIR’s Regional Offices have consistently showed double-digit growth.

In May, the BIR’s regional offices collected P29.09 billion, higher by P5.67 billion or 24.2 percent more than the collections made a year ago.

Similarly, collections by the BIR’s Large Taxpayer Service amounted to P63.17 billion, P1.21 billion or 1.95 percent more than collections made in May 2011.

The Large Taxpayer Service – which is tasked to collect taxes from conglomerates and other big earners – could have collected more if not for a decrease in reported sales and revenues and an increase in the expenses by some taxpayers under its jurisdiction.

BIR Commissioner Kim Henares said the agency would be conducting short period audits on some of the large taxpayers to determine the accuracy of the figures they submit.

The agency said this is on top of the ongoing monitoring by the regional offices of the tax compliance of sole proprietors and professionals.

Henares said that the agency would continue to step up efforts to boost collections as it is determined to meet its revenue goal this year of P1.066 trillion.

For the first time, the BIR’s revenue goal has reached the P1-trillion mark.

The agency has been actively plugging revenue loopholes by reviewing regulations issued in the past. It has also been investigating different schemes employed by delinquent taxpayers.

Initiatives include the name and shame campaign through the regular filing of tax evasion cases before the Justice department, the intensified monitoring of issuance of receipts and the issuance of Letters of Authority to big taxpayers.

Last year, the BIR collected P924 billion, below its goal for that year of P940 billion.