No massive lay-offs at BIR – De Venecia

There will be no mass layoff of personnel of the Bureau of Internal Revenue (BIR) once the agency is transformed into the Internal Revenue Management Authority (IRMA), Speaker Jose de Venecia Jr. said yesterday.

"As in the creation of the Department of Housing which the House has already approved on second reading, there will be no mass layoff of BIR officials and employees," he said.

De Venecia, Majority Leader Neptali Gonzales II and Representatives Rolando Andaya Jr. (Lakas, Camarines Sur), Robert Ace Barbers (Lakas, Surigao del Norte) and Jules Ledesma (NPC, Negros Occidental) have authored a bill seeking to replace the BIR with IRMA.

The four House leaders’ proposal was obviously prompted by the failure of the BIR to meet its collection target. Due to such failure, the government is facing a huge budget deficit of up to P150 billion this year, P20 billion more than the target.

However, those calling for the ouster of BIR Commissioner Rene Bañez said the problem lies not in the agency or in the collection system.

"It lies in the chief taxman and his collectors. Even if you call the BIR IRMA or whatever name, if they do not perform well and do not attain their targets, the government will continue to grapple with a soaring budget deficit," said Rep. Prospero Nograles (Lakas, Davao City).

De Venecia said the proposed IRMA will be run like a corporation and will be free from political influence.

It is patterned after successful models in New Zealand, Peru and Singapore, he said.

He said BIR personnel who want to avail themselves of early retirement will be offered attractive retirement benefits.

In a related development, President Arroyo has approved the proposal of Bataan Rep. Enrique Garcia for the BIR, Customs and other revenue-raising agencies to hook up on-line with their authorized collecting banks.

"This way, these agencies can easily check who paid what and go after those with delayed payments or delinquencies. This is what utilities like Meralco, Maynilad, telephone companies, and credit card firms, among others, have been doing," he said.

In the case of the revenue agencies, Garcia said the collecting banks do not inform them what they have received in tax payments and from whom.

The banks are also allowed to keep the money and even use it before remitting it to the treasury, he said.

It is this system that has given rise to diversion of tax payments and other fraud, he added.