BIR still optimistic about meeting its yearly goals
11/04/2009 | 01:37 AM
The Bureau of Internal Revenue (BIR) continues to be optimistic it will meet this year’s revenue targets but failure to do so should not be taken against it, the agency’s interim chief on Tuesday said.
Malacañang held off naming a permanent replacement for outgoing BIR Commissioner Sixto S. Esquivias IV and its choice as officer-in-charge, Senior Deputy Commissioner Joel L. Tan-Torres, said the priority was hiking collections.
Observers, however, described the initiatives unveiled as "not new."
Given the economic downturn and two devastating storms, former Budget Secretary Benjamin E. Diokno said it was all but certain that the bureau would miss its 2009 target of P798.5 billion.
After announcing on Sunday that a successor would be named on Tuesday, Press Secretary Cerge M. Remonde told reporters: "The president has designated Mr. Tan-Torres, a veteran BIR official, as officer-in-charge of the BIR pending the appointment of a regular commissioner."
Finance Secretary Margarito B. Teves, in a statement, said Mr. Esquivias’ resignation letter declared that the tax chief was "giving way to other individuals who would hopefully lead [the BIR] to achieve even better results."
He said Mr. Esquivias’ resignation would take effect on November 6.
Mr. Tan-Torres, who staged a briefing on Tuesday in the wake of his boss’ quitting last Friday, said: "We definitely will pursue new measures which we hope to do within the next two months to help in terms of maximizing the tax potentials ... We are also ready to develop new programs for ... 2010."
"With all these we hope we won’t slide and not meet our monthly targets. In terms of meeting our annual target, we are now short by P39 billion. We will be hard pressed in meeting this ... but even if we don’t meet the target, it should be understood that there are mitigating reasons."
His initiatives include:
* implementation of "Operation SanTAX Claus" which involves the monitoring of Christmas bazaars to ensure that the right taxes are paid;
* enhancement of accreditation rules for tax practitioners;
* electronic sharing of third party tax information;
* measures to minimize losses from revenue-eroding laws like the Personal Equity Retirement Account and Tourism acts; and
* implementation of a 5 percent withholding tax on individuals and firms providing services to political parties.
He did not elaborate, saying details still have to be finalized.
The BIR official however, noted that monitoring of bazaars would be crucial given the upcoming holidays.
Mr. Tan-Torres said the bureau would continue to pursue existing programs such as Oplan Kandado, audits, and the evaluation of key personnel.
"As far as we are concerned, we are all united in pursuing the current programs which we all had a hand in developing. We will continue to maintain these if given the opportunity for the next months that we are serving."
Asked to comment on Mr. Tan-Torres’ initiatives, Mr. Diokno said: "They are not new ... I don’t think these will make a major difference. I don’t think the BIR can attain its targets."
"What more can you get from businesses affected by the storms? They are also affected by the slowdown. The reasonable thing to do is run after big-time tax evaders."
Tammy H. Lipana, chairman of the Philippine Chamber of Commerce and Industry’s tax committee, said: "While these measures are not entirely new, they can come up with innovative approaches. Let us give him (Mr. Tan-Torres) a chance."
The BIR, which accounts for around three-fourths of the government’s tax revenues, was short by P39.2 billion as of end-September.
It must collect P241.5 billion during the last quarter to meet its P798.5-billion target.
Mr. Tan-Torres worked for the BIR from 1980 to 1996, moving to auditing firm SyCip Gorres Velayo & Co. where he became a partner.
He left the firm, along with 13 other partners, last March over a disagreement regarding the control exerted by American principal Ernst & Young.
He returned to the bureau last August by virtue of Executive Order 827 which named him senior deputy commissioner.
Mr. Esquivias is also a BIR veteran, serving for over two decades before retiring in 2000.
He returned after President Gloria Macapagal Arroyo asked him to replace Lilian B. Hefti, who left for health reasons.
His departure makes him the fifth tax chief to leave his post under the Arroyo administration. - - A. D. B. Romero with a report from G. S. dela Peña, BusinessWorld
Malacañang held off naming a permanent replacement for outgoing BIR Commissioner Sixto S. Esquivias IV and its choice as officer-in-charge, Senior Deputy Commissioner Joel L. Tan-Torres, said the priority was hiking collections.
Observers, however, described the initiatives unveiled as "not new."
Given the economic downturn and two devastating storms, former Budget Secretary Benjamin E. Diokno said it was all but certain that the bureau would miss its 2009 target of P798.5 billion.
After announcing on Sunday that a successor would be named on Tuesday, Press Secretary Cerge M. Remonde told reporters: "The president has designated Mr. Tan-Torres, a veteran BIR official, as officer-in-charge of the BIR pending the appointment of a regular commissioner."
Finance Secretary Margarito B. Teves, in a statement, said Mr. Esquivias’ resignation letter declared that the tax chief was "giving way to other individuals who would hopefully lead [the BIR] to achieve even better results."
He said Mr. Esquivias’ resignation would take effect on November 6.
Mr. Tan-Torres, who staged a briefing on Tuesday in the wake of his boss’ quitting last Friday, said: "We definitely will pursue new measures which we hope to do within the next two months to help in terms of maximizing the tax potentials ... We are also ready to develop new programs for ... 2010."
"With all these we hope we won’t slide and not meet our monthly targets. In terms of meeting our annual target, we are now short by P39 billion. We will be hard pressed in meeting this ... but even if we don’t meet the target, it should be understood that there are mitigating reasons."
His initiatives include:
* implementation of "Operation SanTAX Claus" which involves the monitoring of Christmas bazaars to ensure that the right taxes are paid;
* enhancement of accreditation rules for tax practitioners;
* electronic sharing of third party tax information;
* measures to minimize losses from revenue-eroding laws like the Personal Equity Retirement Account and Tourism acts; and
* implementation of a 5 percent withholding tax on individuals and firms providing services to political parties.
He did not elaborate, saying details still have to be finalized.
The BIR official however, noted that monitoring of bazaars would be crucial given the upcoming holidays.
Mr. Tan-Torres said the bureau would continue to pursue existing programs such as Oplan Kandado, audits, and the evaluation of key personnel.
"As far as we are concerned, we are all united in pursuing the current programs which we all had a hand in developing. We will continue to maintain these if given the opportunity for the next months that we are serving."
Asked to comment on Mr. Tan-Torres’ initiatives, Mr. Diokno said: "They are not new ... I don’t think these will make a major difference. I don’t think the BIR can attain its targets."
"What more can you get from businesses affected by the storms? They are also affected by the slowdown. The reasonable thing to do is run after big-time tax evaders."
Tammy H. Lipana, chairman of the Philippine Chamber of Commerce and Industry’s tax committee, said: "While these measures are not entirely new, they can come up with innovative approaches. Let us give him (Mr. Tan-Torres) a chance."
The BIR, which accounts for around three-fourths of the government’s tax revenues, was short by P39.2 billion as of end-September.
It must collect P241.5 billion during the last quarter to meet its P798.5-billion target.
Mr. Tan-Torres worked for the BIR from 1980 to 1996, moving to auditing firm SyCip Gorres Velayo & Co. where he became a partner.
He left the firm, along with 13 other partners, last March over a disagreement regarding the control exerted by American principal Ernst & Young.
He returned to the bureau last August by virtue of Executive Order 827 which named him senior deputy commissioner.
Mr. Esquivias is also a BIR veteran, serving for over two decades before retiring in 2000.
He returned after President Gloria Macapagal Arroyo asked him to replace Lilian B. Hefti, who left for health reasons.
His departure makes him the fifth tax chief to leave his post under the Arroyo administration. - - A. D. B. Romero with a report from G. S. dela Peña, BusinessWorld
