BIR expects to collect P917B from large taxpayers

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has revised upward its projected collections from large taxpayers to P917 billion this year.

The amount is P2 billion higher than the original revenue assumption of P915.08 billion.  It also represents a 19.35 percent growth from the expected P768.3 billion collections from the large taxpayers service (LTS) last year.

Classified as large taxpayers by the BIR include conglomerates, their subsidiaries and affiliates, multinational companies, universal/commercial  and foreign banks and firms with an authorized capital of at least P300 million.

The LTS accounts for the biggest share in BIR’s total revenues.

The BIR is tasked to collect P1.425 trillion this year or 14 percent more than its collection goal of P1.25 trillion in 2013.

In 2012, the LTS collected P649.95 billion from 2,019 registered, active taxpayers.  The amount represented 64 percent of the BIR’s total collections of P1.015 trillion.

Of the expected P917 billion,  P500.43 billion will come from income taxes , P123.93 billion from excise taxes, P199.27 million from value-added tax, percentage taxes (P48.41 million) and P44.94 billion from other taxes.

The BIR-LTS expects to raise P86.46 billion in revenues in the first quarter, P97.27 billion in the second quarter, P127 billion in the third quarter and P124.34 billion in the fourth quarter.

The government’s main tax collection agency is banking on information technology to get more individuals and corporations to pay the correct taxes and pin down tax evaders.

The BIR plans to expand the use of electronic systems to the issuance of the Certificate Authorizing Registration (eCAR), adoption of an online facility for transfer tax transactions (OSTTT) and accreditation of importers and brokers.

The online accreditation of importers and customs brokers is intended to streamline the registration procedures and simplify the requirements necessary for the issuance of certificate of accreditation.

The eCAR is a web-based system that automates the generation of barcoded CARs and will eventually be used by BIR offices in the conduct of pre-and post-audit of said transactions. This is expected to reduce revenue losses arising from spurious CARs for all kinds of one-time transactions.

The BIR is also planning to put in place an electronic tax information system to enhance BIR’s integrated tax system.