The Bureau of Internal Revenue (BIR) is eyeing to raise around P4 billion from its amnesty program for delinquent taxpayers, its top official said today.
“Our expectation from the tax amnesty program is P3.83 billion. We’re hoping that we would meet this amount,” BIR Commissioner Lilian Hefti said.
The Tax Amnesty Law of 2007, one of the fiscal reform measures of the Arroyo administration, immunes a qualified taxpayer from any law suits involving deficient tax payments covering the period 2005 and prior years if he or she pays the tax amnesty fee.
Under the law, the tax amnesty rate is five percent of a taxpayer’s net worth or a fee ranging from P25,000 to P500,000 depending on the net worth.
BIR associate commissioner Jaime Santiago said it would be possible for the agency to meet the projected revenues from the program if applicants do not make any false declaration in their applications for amnesty.
The BIR, the government’s top revenue earner, started the tax amnesty program last Sept. 6.
Although the P3.83 billion is a significant amount, this is a drop in the bucket if compared to the estimated amount of unpaid taxes sought by the government.
The government is running after P71 billion worth of unpaid taxes through various tax evasion cases pending in court.