BIR sees P1-T collection this yr

MANILA, Philippines - The Bureau of Internal Revenue (BIR), which accounts for 70 percent of total government revenues, will collect at least P1 trillion this year, its top official yesterday said.

However, BIR Commissioner Kim Henares said she is not yet sure if the agency would meet its revenue target of P1.066 trillion for the whole year.

“We will hit the P1 trillion. Everyone has been working hard,” Henares said. She said it would be the first time in the BIR’s 108-year history that collections would reach P1 trillion.

As for the goal of P1.066 trillion, Henares said the BIR is working hard to meet the target.

For her part, deputy commissioner Estela Sales said the agency’s Run After Tax Evaders (RATE) program has been paying off as it resulted in more taxpayers filing the proper tax returns and paying the right amount of taxes.

The BIR hopes to collect at least P50.773 billion in unpaid taxes from 133 cases it has so far filed at the Department of Justice, latest data from the BIR showed.

Yesterday, the BIR filed tax evasion cases worth P17 million at the Justice department. It filed the cases against a Mandaluyong-based contractor and three individuals involved in the sale of a condominium unit and a parking lot in Manila.

The BIR filed a case against 515 Builders Corporation and its responsible corporate officers, its president, Winston Dy and its chief financial officer, Olivia Dy, for violating sections 254 and 255 of the National Internal Revenue Code from 2009 to 2011.

The BIR alleged that the contractor evaded income tax payments but made it appear that it has been filing tax returns from 2009 to 2011.

The BIR, through its investigation on 515 Builders, discovered that it had filed  fictitious income tax returns for the three-year period in San Juan when it should have filed it in Mandaluyong City.

 “Based on the company’s documents, the BIR computed 515 Builders’ income tax due at P16.44 million for the three year period inclusive of surcharge and interest,” said Henares who led yesterday’s filing.

The BIR also filed cases against Stephen Lee Keng and Elvinario Valenzuela for two counts of attempting to evade taxes and failing to file capital gains tax (CGT) and documentary stamp tax (DST) returns on the sale of a real property in Manila.

The agency also filed a case against Marissa Timones, Registrar of Deeds of the City of Manila for allowing the transfer of real property without a certification from the BIR.

Based on the BIR’s investigation, Keng sold to Valenzuela a residential condominium unit and parking lot at the Alpha Grandview Condominium along MH del Pilar in Malate, Manila for P3.2 million.

The sale and the transfer of the title happened in 2010.

Under the NIRC, the seller, Keng, is liable for the capital gains tax while the buyer, Valenzuela, is required to file a documentary stamp tax return and to pay it five days at the end of the month when the deed of sale was signed, but the BIR said no tax payments were made.

BIR computations showed that Keng has a deficiency CGT liability of P461,433.37 including surcharge and interest, while Valenzuela’ has a deficiency DST of P115,953.63 with surcharge and interest.

Criminal charges were also filed against Timones for violation of Section 58 of the NIRC.