BIR starts electronic link with RP’s top 20 excise taxpayers

The Bureau of Internal Revenue (BIR) will soon implement an electronic linkage system with the nation’s top 20 excise taxpayers to reduce manual processes and hand-overs in the preparation and submission or filing of information returns prescribed by it from excise taxpayers.

According to Assistant Commissioner Edwin Abella, the adoption of the system is in line with the bureau’s thrust to improve the excise tax administration that would provide convenience to excise taxpayers in terms of compliance with the BIR’s regulatory and reporting requirements.

On the other hand, the BIR will benefit in terms of improved operational efficiency in the exercise of its supervisory and control functions over excisable establishments.

With the system, accurate and real-time information from excise taxpayers on product movements from receipts of raw materials up to removals and/or sales of goods will be provided. Likewise, the linkage will establish a database that is valuable in the analysis, profiling simulation and forecasting of revenues from excise taxes.

"Importantly too, the implementation of the system will minimize taxpayer contact in the course of supervising and controlling its operations for purposes of determining the correct volume of production and removals of excisable articles," Abella explained.

He added that there is a need to create an information-friendly environment that links the database of excise taxpayers with the BIR’s systems and facilities. The electronic linkage system will provide the BIR with the capability to elicit directly from the taxpayer’s database relevant information necessary in the determination of the correct amount of excise taxes due from excise taxpayers.

Extracted information includes all the recorded transactions covered by the linkage, which are exact replica of the pertinent data contained in the taxpayers’ database. In case of disputes or discrepancies in the details of extracted information, the data shown in the BIR server shall prevail.

Abella said that information taken by the BIR from the taxpayer’s database shall be treated with utmost confidentiality and shall only be used for internal revenue tax purposes in accordance with the provisions of the Tax Code. Sufficient system security measures shall also be instituted by both the BIR and the taxpayer to prevent any destruction, or hacking that maybe inflicted on the computerized systems and facilities of both parties.