 Year
2001
J
a n u a r y
TIN
card use soon to expand
In the near future, taxpayers will
view the Taxpayer Identification Number, or TIN card, not only as
a requirement in government transactions, but as an ID that is just
as equally important as a driver's license, discount cards and other
universally-accepted IDs.
This is a priority endeavor of the BIR under the
TIN Implementation Project, which aims to expand the taxpayer base
through the expansion of the mandatory use of the TIN to include
economic and business transactions in the private sector.
In a meeting chaired by Commissioner Dakila Fonacier
and attended by Executive Director Leonilo Coronel of the Bankers
Association of the Philippines (BAP), several possible economic
and business transactions which may require the use of the TIN were
discussed. One of the proposals is the mandatory use of the TIN
in banking transactions, such as opening bank accounts, entering
into loan agreements/contracts, purchases of checks and other banking
transactions.
The mandatory use of the TIN in other business
transactions was also considered, and these include transactions
with credit card companies, brokerage firms, insurance companies
and airline and shipping companies. The elevation of the TIN card
to the status of a "discount card" (like Rewards Plus)
was also discussed.
To effect the mandatory use of the TIN in the identified
business transactions, a Memorandum of Agreement (MOA) with the
BAP and the Philippine Retailers Association will be prepared. To
serve as the legal basis of the MOAs, a new Executive Order (EO)
will also be drafted to expand the coverage of EO No. 98 (mandating
all government agencies to require the use of the TIN in government
transactions). (By Elen Capili)
BIR
implements Task Force initiatives for 2001
To help the BIR generate more revenues
amidst the country's prevailing economic crisis, several Task Force
Initiatives were being undertaken under close supervision of top
BIR officials.
One such initiative is the identification and prosecution
of high-profile tax cases, particularly those involving doctors,
basketball players, contractors and industries under the control
of the Bureau of Food and Drugs.
A Task Force is also working on the matching of
the BIR registration database with the Mayor's Permit List to determine
non-filers and potential registrants. The third party information
being provided by the Bureau of Customs and the Securities and Exchange
Commission are also being utilized to identify potential registrants.
In the area of tax enforcement, a Task Force is
also working on the suspension of business operations and closure
of business establishments found to have violated the provisions
of the Tax Code. Establishments registered with the Philippine Economic
Zone Authority are also being investigated.
Finally, a Task Force was also created to gather
data and statistics, as well as study and evaluate the tax potentials
of certain industries, namely: telecommunications; pre-paid card
providers; manufacturers of semi-conductor devices and other electronic
components; banks, financing and pre-need companies; and airlines
and shipping companies. (By Elen Capili)
Raffle promo winners receive
prizes
A sickly child from Sta. Mesa, Manila is now assured
of better and sustained medical attention after her mother, Dina
C. Gafud, received her P 1 Million cash prize from Commissioner
Dakila Fonacier during the Bureau's flag-raising ceremony on January
14.
Ms. Gafud won the 1st prize in the grand raffle
draw of the of the Bureau's "Humingi ng resibo, Milyun-Milyon
Pa Rin Ang Panalo" held at the SM City Food Court on December
10. The other two grand prize winners, who are now P 1 Million and
P 750,000 richer, are Ana Zenia Aligno and Rosalie Echavez, respectively.
Ms. Gafud, a nurse, plans to deposit her P 2 Million
cash prize in a bank, with a portion of it going to a trust fund
for her daughter. Ms. Aligno, a physician, will use her winnings
to renovate her clinic in Cebu. Ms. Echavez, a bank employee, will
invest part of her winnings in a business and deposit the rest in
a bank. (By Raul Agcaoili)
Six
top officials took oath of office
Upon the recommendation of Commissioner
Dakila Fonacier, six (6) BIR officials were either promoted to a
higher position, or finally confirmed to their designated positions,
when they took their oath of office before Finance Secretary Jose
Pardo on January 4.
Virginia Trinidad, Nora Tamayo and Norma Lipana
were sworn in as BIR Assistant Commissioners for the Large Taxpayers
Service, Assessment Service and Financial and Administrative Service,
respectively.
Sworn in as Head Revenue Executive Assistants are
Erlinda Simple of the Taxpayer Assistance Service; Domingo Alvarez
of the Inspection Service; and Aida Simborio of the Commissioner's
Office (acting concurrently as Chief of the Taxpayer Information
and Education Division). (By Raul Agcaoili)
F
e b r u a r y
Former
DCIR named new BIR Commissioner
Following
the victory of EDSA People Power 2, newly-installed President, Gloria
Macapagal-Arroyo, appointed a former BIR Deputy Commissioner as
the new Commissioner of Internal Revenue (CIR).
In a simple turnover ceremony held at the Bureau's Executive Conference
Room on February 7, the changing of the guard in the BIR was formalized
with the symbolic turnover of the BIR flag, gong and gavel from
outgoing Commissioner, Dakila B. Fonacier to incoming Commissioner,
Rene G. Bañez.
A personal choice of Finance Secretary Alberto Romulo to the CIR
position, Commissioner Rene G. Bañez served as BIR Deputy
Commissioner for Resource Management Group from June 1993 until
November 1995 under then Commissioner Liwayway Vinzons-Chato.
He took his Bachelor of Laws from the Ateneo de Manila University
(AdMU), and later on became one of its tax professors. He spent
more than ten years of his career life at the Joaquin Cunanan and
Co./Price Waterhouse (Phils.), starting as a Tax Consultant in 1982
until he became a Tax Principal and a Partner in 1993.
Prior to his appointment as CIR, he was the Senior Vice President
for Support Services and Tax Management of the Philippine Long Distance
Telephone Company.
In his message during the turnover ceremony, Commissioner Bañez
said that he will continue what Commissioner Fonacier has started
in the Bureau, and that he will introduce some refinements based
on the policies and directions that will be set by the new Finance
Secretary. (By Ruth Llausas)
BIR
to implement E-filing
With
the signing into law of the E-Commerce Act of 2000, the BIR is set
to implement an electronic filing and payment system known as the
Automated Data Capture System (ADCS).
Under
the system, the electronic filing (E-filing) of individual and corporate
income tax returns and payment of corresponding taxes will be made
possible via the Bureau's internet web facilities. An application
software and password will be provided to taxpayers who will use
the system to avoid illegal access to and tampering of data.
The
development of the System is currently being undertaken by Fujitsu
Philippines, Inc., under the supervision of HREA Erlinda Simple
of the Taxpayer Assistance Service.
Pilot
implementation of the System, which is targeted by end of March
2001, will be done for the 730 large taxpayers and 2,000 volunteering
BIR employees in the National Office. (By Omie Gonzales)
Commissioner
Fonacier bids BIR goodbye
"I
hope that all of you will carry on the positive elements of the
humble vision that I have brought with you," said Commissioner
Dakila Fonacier during the Appreciation Party given in his honor
on January 26.
Commissioner Daki, as his subordinates fondly call him, has always
wanted to become a catalyst for positive change and to leave a permanent
mark in any organization he has been with. He expressed regret though,
that he had only one year to do that in the Bureau.
He
tendered his resignation last January 19, following the irrevocable
resignation of Finance Secretary Jose T. Pardo.
"I
can stand proud on our record as a team for CY 2000, " the
Commissioner said, as he expressed his appreciation to everyone
who supported his incumbency in the Bureau.
In
parting, the honoree said, " There are many good people at
the BIR. It is my good fortune to identify them. Sayang nga lang
at nagkulang ng oras." (By Pinky Paller)
LTS
Planning Session held
The Large Taxpayers Service (LTS) has taken its leap into the new
year with the conduct of its Annual Planning Session at the Eugenio
Lopez Center in Antipolo City on January 13, 2001.
With more than 55% of the Bureau's total goal for the year assigned
to LTS, ACIR Virginia Trinidad initiated the conduct of the Planning
Session for the formulation of Work Plans that will support the
Service's attainment of its P 233 Billion collection target for
2001.
"With
God's intervention, LTS made a headway in its revenue collection
in CY 2000 as compared with its CY 1999 revenue collections,"
said ACIR Trinidad.
To
maintain the Service's good collection performance, ACIR Trinidad
directed the LTS Division Chiefs to formulate their 2001 Work Plans
in line with the tax reform measures recommended by the International
Monetary Fund. She also asked LTS officials to implement activities
that will generate additional revenues for the Bureau.
To serve as inputs in the preparation of the 2001 Work Plans, HREAs
Raymund Gallardo, Celia King and Corazon Pangcog presented the CY
2000 accomplishments; the issues and problems relative to the LTS-ETS
merger; and the proposed LT Work Program for CY 2001 and personnel
policies and budget for CY 2001-2002, respectively.
During the Planning Session, all the LTS Division Chiefs and Assistant
Division Chiefs formulated their respective office's Work Plans,
which are geared toward increasing collections, building professionalism,
establishing service-oriented offices and reinforcing tax education
and audit and enforcement activities. (By Nema Larines)
Payment
of large taxpayers acknowledged
The Large Taxpayers Service (LTS) has found an effective way to
acknowledge the contributions made by the large taxpayers in the
Bureau's revenue-generation efforts.
Through the joint effort of the Large Taxpayers Document Processing
and Quality Assurance Division and the ISOS Data Center, confirmation
letters are being sent to large taxpayers not only to confirm tax
payments made by them, but also to express appreciation for their
continued support in the Bureau's collection efforts.
The payment data contained in the confirmation letters are extracted
through the Collection and Bank Reconciliation System, Electronic
Data Transfers and payment auto-transfer facility.
This practice of sending confirmation letters is part of LTS' continuing
effort to deliver quality service to large taxpayers. (By Nellie
Gatbunton)
CIR
Banez wants new image for the BIR
"Over
the years, the BIR changed a lot in terms of structure, revenue
goal and number of personnel. The only thing that has not changed
is the public's perception of the BIR as one of the most corrupt
agencies in the country."
This was the
opening statement made by Commissioner René G. Banez when
he delivered his first message to revenuers during the flag-raising
ceremony held at the BIR National Office on February 12.
Because of
the negative image of the BIR, Commissioner Bañez vowed to
work on the transformation of the BIR into a taxpayer-focused agency.
Toward this end, he cited his plan to revisit the Philippine tax
system and the tax processes, to make it simple and taxpayer-friendly.
A review of the BIR organizational structure and personnel complement
will also be done, to support the right tax system and processes.
The Commissioner
also mentioned that he will issue a Revenue Memorandum Circular
prohibiting all revenuers from entering into certain kinds of official
transactions with any of his relatives, and from accepting gifts
from taxpayers.
He likewise
spoke of the need to professionalize the revenue service by establishing
criteria in the promotion of personnel. Relative to this, he said
that endorsements for promotion will not be considered.
"If we
want to restore the public's trust and confidence in the BIR, let
us work together towards this end," said the Commissioner.
(By Rowena Altura)
M
a r c h
CIR
prohibits revenuers from accepting gifts
In observance
of his sworn duty to lead the BIR by example, Commissioner Rene
G. Bañez and his staff will turn over to the Inspection Service
all gifts they will receive on account of special circumstances
and/or occasions, "irrespective of the monetary value thereof."
This policy
is contained in Revenue Memorandum Circular No. 4-2001, which likewise
prohibits all revenue officials and personnel from accepting any
fee, gift or other valuable item given in the course of official
duties, most especially if this is being done by a person for the
purpose of receiving special favor or better treatment than that
accorded to other persons.
However, "moderate
gifts," in kind, given on account of special circumstances
and/or occasions (i.e. birthday, illness, marriage, Christmas celebrations,
birth of a child, etc.) can be accepted, provided the monetary value
of each moderate gift does nor exceed P2,500. If the value of a
gift given to a revenue official or personnel exceeds P2,500, the
same will have to be declared and turned over to the Inspection
Service.
The Inspection
Service will then issue a receipt for the turned over gifts in the
name of a Taxpayer's Foundation, Inc. to be established by the private
sector.
All revenue
officials and employees are likewise prohibited from soliciting
or accepting, directly or indirectly, any gift, gratuity, favor,
entertainment, loan or anything of monetary value in the course
of official duties.
Any official
or employee found to have violated the prohibitions of the said
Circular will be held liable under the pertinent Civil Service Laws
and Anti-Graft and Corrupt Practices Act. (By Ruth Llausas)
BIR-DILG-LGU
MOA signed
The Bureau
of Internal Revenue, the Department of Interior and Local Government
(DILG) and the Local Government Units (LGUs) have committed to unite
their efforts to enhance tax enforcement and revenue collections.
The commitment
was made through a Memorandum of Agreement (MOA) signed by DILG
Secretary Jose D. Lina, Jr., DOF Secretary Alberto G. Romulo, BIR
Commissioner Rene G. Bañez and the Presidents of the four
(4) major leagues of local government units.
The DILG will
help the BIR in facilitating LGUs' compliance with the withholding
tax laws and regulations, as well as in the remittance of the withheld
taxes on time.
The LGUs, represented
by their league presidents, agreed to assist the Revenue District
Offices in tracking down unregistered and delinquent taxpayers,
and will allow the BIR to have access to the tax records of all
LGUs, among others.
In return,
the BIR will provide the LGUs with the annual internal revenue tax
collections and facilitate the issuance of copies of certificates
needed by LGUs, among others.
The President
of the four major leagues who signed the MOA are: Governor Hilario
De Pedro III, for the League of Provinces of the Philippines; Mayor
Alipio Fernandez, Jr., for the League of Cities of the Philippines;
Mayor Jinggoy Estrada, for the League of Municipalities of the Philippines
and James Marty Lao Lim, for the Liga ng mga Barangay sa Pilipinas.
(By Bong Montejo)
BIR
Web Site revisited
The BIR Web
Site has a new "look" and contains more information useful
not only for the taxpayers, but for the revenue officials and personnel
as well. This was done as part of the Bureau's continuing effort
to provide relevant, accurate and timely information about taxation
and tax administration initiatives.
New information
that can be seen online are the following: "Tax Reminders"
portion and "What's New" portion in the Home Page; BIR
History and Mandate; general statement of functions of all BIR offices;
area of jurisdiction/boundaries and list of all Accredited Agent
Banks per RDO; index and digest of Revenue Regulations, Revenue
Memorandum Orders and BIR Rulings issued from 1998 to present; feature
articles related to taxation and tax administration; articles on
tax computerization updates; and the BIR Annual Report.
Tax information
can also be accessed through the BIR Web Site. Said information
(presented per type of tax) includes the description of tax and
the corresponding Codal reference, procedures and compliance requirements,
tax tables, tax deadlines, tax forms, related revenue issuances
and frequently asked questions.
Other information
already posted in the BIR Web Site are: the 1997 Tax Code, Tax Calendar,
downloadable BIR Forms, updated zonal value of real properties and
TIN verification.
The enhancement
of the design and content of the BIR Web Site was done through the
joint effort of the Corporate Communications Division and the Systems
Development Division, in cooperation with various offices of the
Bureau (i.e. divisions under the Taxpayer Assistance Service, Policy
and Planning Service, Legal Service, etc.) that provide materials
posted in the Web. (By Pinky Paller)
CIR sets policy directions
for 2001-2003
"Let us transform the BIR into a taxpayer-focused
agency and restore the trust and confidence of the public in the
Bureau."
This was the vision presented by Commissioner Rene
G. Bañez to the top BIR officials during the Planning Conference
held in the BIR National Office on March 2. To attain this vision,
the Commissioner presented his policy directions for the short-,
medium- and long-term.
For the short-term (CY 2001), the policy directions
of the Commissioner include: 1) collection of the P 408 Billion
collection goal; 2) implementation of the electronic metering system
for Documentary Stamp Tax; 3) compromise settlement of delinquent
accounts; 4) strict monitoring of local government units' compliance
with the Withholding Tax Law; 5) full implementation of the Large
Taxpayers Program; 6) computerization of procedures and databases;
7) strengthening of audit capabilities; and 8) implementation of
third party information initiatives.
For the medium and long-term, "radical approaches"
to address the problem of tax administration will be initiated.
These are: 1) reform of the tax system and the Tax Code to suit
the Philippine culture; 2) reengineering of the tax processes to
make them simpler, more efficient and transparent; 3) restructuring
of the BIR to give it legal and financial autonomy and to make it
more flexible and responsive to the needs of taxpayers; and 4) redesign
of human resource policies, systems and procedures to transform
workforce.
The distribution of the collection goal for 2001
per Regional Office was also presented and discussed during the
Planning Conference, in addition to the major programs and issues
affecting the operations of the BIR.
Finally, a new approach on Performance Management
in the BIR was introduced during the Planning Conference, in the
light of the impending approval of the Lateral Attrition Law. (By
Rowena Altura)
Totoo ba ang tsismis?
"All those rumors are not true!"
This was the declaration made by Commissioner Rene
G. Bañez in relation to his alleged restrictions and prohibitions
imposed in the BIR, during the first Employees Forum held at the
BIR Training Room on March 16.
The rumors, which the Commissioner denied, include his alleged prohibition
of distilled water dispensers in BIR offices, and the serving of
coffee while entertaining taxpayers, as well as the opening of the
canteen only from 11:30 AM to 1:30 PM. They are believed to have
originated from a blind item published in a major newspaper. "I
just wish that the writer was brave enough to indicate his name
in his article," said the Commissioner.
During the 2-hour forum, the Commissioner presented
to the revenue officials and employees his policy directions for
the short, medium and long-term. He also answered questions raised
by the BIR attendees, most of which were related to the impending
reorganization of the BIR.
"Magtulungan tayo para magawa natin ng maayos
ang mga reporma. Huwag nating isipin ang mga sarili lamang natin,"
said the Commissioner. (By Elen Capili)
CIR creates Transformation
Project Management Office
To expedite the implementation of the Bureau's
four-point radical reform agenda, Commissioner Rene G. Bañez
created a Transformation Project Management Office (TPMO) through
the issuance of RSO No. 103-2001.
The TPMO is headed by the Commissioner, as Project
Director, and Atty. Edwin Abella, as Project Manager. It is composed
of four (4) Project Teams that shall study, conceptualize, design
and develop the transformation initiatives of the Bureau, as well
as ensure its successful implementation.
The activities of each Project Team will focus
on different areas of transformation. Team A, headed by Director
Antonio Ortega, will work on the reform of the tax system while
Team B, led by Atty. Roberto Baquiran, will be working on the reengineering
of tax processes. Team C and Team D, headed by HREA Benedicta Baladad
and Director Michelle Tapia, respectively, will work on the restructuring
of the BIR and redesign of the human resource policies, systems
and procedures. (By Elen Capili)
A
p r i l
BIR
transformation initiatives gain support
"Count me in as one of the sponsors of your
transformation initiatives!"
This was the reaction of Finance Secretary Alberto
G. Romulo after listening to the presentation made by Commissioner
Rene G. Bañez of the proposed transformation initiatives
of the BIR.
The presentation, which was made on April 3 at the
Philippine Deposit Insurance Corporation, was highly appreciated
by Secretary Romulo. He emphasized, however, that the BIR should
focus first on the collection of taxes to gain the trust and confidence
of the public.
"It will not be difficult to get the support
of members of Congress and the public for the approval of your proposals
if the BIR could deliver its targeted collection for the year",
said Secretary Romulo.
In another presentation made on April 6 at the BIR
Executive Conference Room, representatives funding agencies (USAID,
ADB, IMF, World Bank, AGILE, GTZ, etc.) likewise expressed their
appreciation and support for the proposed transformation initiatives
of the BIR. They were impressed with the "integrated"
approach presented by the Commissioner and the Heads of the Transformation
Project Management Office (TPMO) in solving the problems of tax
administration.
The Heads of the TPMO who presented the details
of the transformation initiatives are: Regional Director Antonio
Ortega (on reforming the tax system); HREA Benedicta Baladad (on
restructuring on the BIR); Atty. Roberto Baquiran (on reengineering
of tax processes) and Director Michelle Tapia (on recreating the
human resources). (By Rowena Altura)
New DCIR for Legal named
"It is a good opportunity to serve the BIR,"
said newly-appointed Deputy Commissioner Edmundo Pascual P. Guevara
of the Legal and Inspection Group, after he was formally introduced
to the BIR family during the flag-raising ceremony held on April
23.
DCIR Guevara was a 14th placer in the 1988 Bar
Examinations, and graduated cum laude at the University of the Philippines
where he took his Bachelor of Arts and Bachelor of Laws. He started
his career as Legal Staff of Honorable Jose Luis Martin Gascon of
the Constitutional Commission in 1986.
He was the President of the Tax Management Association
of the Philippines from 2000-2001, and was serving as Tax Principal
of the SyCip, Gorres, Velayo & Co. before he was invited by
Commissioner René G. Bañez to join the BIR.
DCIR Guevara does not consider himself a stranger
in the Bureau because of his involvement in 1998, as a private sector
participant, in the drafting of the implementing rules and regulations
of the Tax Code of 1997. (By Ruth Llausas)
Executive Branch supports
BIR transformation initiatives
The Bureau has reasons to celebrate after it received
a favorable response from representatives of the Executive Branch
for the proposed transformation process in the BIR.
"You have our support," said Presidential
Management Staff Head Vicky Garchitorena, after listening to the
presentation made by Commissioner Rene G. Bañez and the team
members of the Transformation Project Management Office on May 15
at Malacañang Palace.
Commissioner Bañez first discussed the background
of the proposed transformation process in the BIR. This was followed
by a presentation by Atty. Roberto Baquiran on the role of the BIR
in government, including the trends in the BIR collection performance
and the rationale for change in tax administration.
ACIR Edwin Abella then presented the short-term
or survival strategies of the BIR for 2001. These are strategies
that are designed to help the BIR meet its 2001 revenue collection
goal of P 408 Billion. These include: 1) protect the integrity
of the revenue base; 2) strengthen the organization and human resources;
3) restore institutional credibility and integrity; and 4) strengthen
enforcement.
The medium- and long-term transformation strategies
were presented by Director Michelle Tapia, which consist of the
following: 1) establishment of Project Team; 2) conduct of organizational
effectiveness study; 3) conduct of surveys on taxpayers; 4) communication
and consultations with internal and external stakeholders; 5) benchmarking
with international revenue agencies; 6) creation of organization
design; and 7) ensuring support and commitment of the Bureau's stakeholders.
Other representatives of the Executive Branch who
attended the presentation were: Sr. Dep. Exec. Sec. Waldo Flores,
Dep. Exec. Sec. Jose Tale, Dep. Exec. Sec. Ching Vargas, Undersecretary
Laura Pascua of the Department of Budget and Management (DBM), Director
Gil Montalbo (DBM), Director Solito REcolizado (DBM) and Director
Amelita Castillo (DBM). (Rowena Altura)
QC-RTC commends BIR for
handling of Manalili's case
Regional Trial Court (RTC) Brnach 95 of Quezon City
commended the BIR for its efficient handling of the economic plunder
case of former revenuer, Dominga Manalili, which led to her conviction.
The Prosecution Division, headed by Atty. Osias
Baldivino, in coordination with the Tax Fraud Division, ably assisted
the state prosecutors in gathering, collating and preparing the
evidences needed to convict Manalili.
Based on the evidences gathered by the BIR, Manalili
was found to have deposited more than P260 million withholding
tax payments in two unauthorized bank accounts she opened at the
Land Bank of the Philippines. Massive withdrawals were then made
by Manalili from the two accounts, which the court described as
tantamount to a raid on the public treasury.
Manalili is the first person in the country to be
convicted of plunder since it became a criminal offense 10 years
ago. In 1994, plunder was included among the heinous crimes punishable
by death. The judge, however, said that Manalili escaped the death
penalty because there were no aggravating circumstances that will
warrant the imposition of the maximum penalty.
The NBI and the PNP have ordered to arrest immediately
four of Manalili's fellow defendants, which include BIR employees
Joel Marcelo and Gil Erencio. The charges filed against two other
defendants, Teopisto Sapitula and Lilia Organo, have been dismissed
for insufficient evidence. (Atty. Mervin Samadan)
CIR suspends tax audit
Commissioner Rene G. Bañez ordered the temporary
suspension of all field operations of the Bureau relative to tax
audit, examination and verification of taxpayers' book of accounts,
records and other transactions.
The suspension was made with the issuance of RMO
No. 10-2001 dated April 24, 2001, which also prohibits any revenue
officials from issuing letters of authority, tax verification notices,
mission orders, or any written orders to audit and/or investigate
internal revenue taxes.
The Commissioner, however, specified several activities
that are not covered by the suspension. These are: 1) investigation
and serving of Assessment Notices for cases prescribing in the year
2001; 2) processing and verification of estate tax returns, donor's
tax returns and tax returns covering the sale of real property or
shares of stocks, prior to the issuance of Tax Clearance and/or
Certificate Authorising Registration; 3) examination and/or verification
of internal revenue tax liabilities of taxpayers retiring from business;
4) verification and processing of all claims for refunds and/or
tax credits; 5) request for reinvestigation/reconsideration (protested
tax cases); and 6) cases approved by the Commissioner for audit
and those undertaken by task forces as directed by the Secretary
of Finance. (Elen Capili)
M
a y
BIR officials
reshuffled
Commissioner Rene G. Bañez ordered
a major reshuffle of top revenue officials further
strengthen the collection efforts of the BIR.
Seventy-eight (78) officials were either transferred
or promoted to new posts, following the issuance of Revenue Travel
Assignment Order Nos. 2-2001, 3-2001 and 4-2001 on May 25.
Among those who were transferred are: Regional Directors
(RD) Ruben Buenaventura, from San Pablo to Calasiao, Pangasinan;
Lucien Sayuno, from Makati City to CAR, Baguio City; Ruperto Somera,
from Calasiao, PAngasinan to Manila; Danilo Duncano, from Butuan
City to Quezon City; Antonio Ortega, from Quezon City to Makati
City; Teodorica Arcega, from Manila to San Pablo; Leonardo Sacamos,
from Iloilo City to Legazpi City; Rene Aguas, from Legazpi City
to Iloilo City; Acting Asst. RD Peregrino Coronel, Jr., from Tuguegarao,
Cagayan to San Fernando, Pampanga; and Fernando Urbano, from Chief,
Legal Division of Calasiao, Pangasina to Chief, Prosecution Division.
Among those who were promoted are: Carolina Pineda,
from Chief, Collection Division of Cagayan de Oro City to Acting
HREA of Collection Service; Jaime Concepcion, from Asst. RD of San
Fernando, Pampanga to Acting RD of Tuguegarao, Cagayan; Nestor Valeroso,
from Asst. RD of Manila to Acting RD of Valenzuela; Marcelinda Yap,
from Acting HREA of Collection Service to Acting RD of Butuan City;
Aguinaldo Miravalles, from Revenue District Officer (RDO) of RD
27-Caloocan City to Acting Asst. RD of Tuguegarao, Cagayan; Cesario
Daug, from RDO of RD 103-Butuan City to Acting Asst. RD of Butuan
City; Erlinda Pantanilla, from Asst. Chief of LTDO-Makati to Acting
RDO of RD 25-Malolos, Bulacan; Carmelita
Bacod, from Asst. RDo of RD 55-San Pablo City to Acting RDO of RD
52-Parañaque; Roberto Baquiran, from Technical Assistant-Office
of the Commissioner to Acting RDO of RD 49-North Makati; and Frederick
Capitan, from Asst. RDO of RD 27-Caloocan to Acting Chief of Tax
Fraud Division.
"These re-assignments will boost the Bureau's chances of meeting
our revenue goal for the year which stands at P 408 Billion.
We are merely matching the revenue potential of all regions and
districts of the country with that of the capabilities, competencies
and experience of our revenue officials," Commissioner Bañez
said. (Aileen Marquez)
SHORT-TERM (Survival) STRATEGIES
Part I
To Protect The Integrity of the Revenue Base
- Collect back taxes from local government units
- Audit selected entities (NGAs, LGUs, GOCCs, large taxpayers,
tax exempt entities, regional cases, thrift banks, pawnshops)
- Develop a system to cover hard-to-tax taxpayers
- Allow compromise of delinquent accounts/disputed assessments
- Use electronic metering machines in the payment of Documentary
Stamp Taxes
- Implement third party information initiatives
- Broaden the tax base
- Deliver efficient and effective taxpayer services
- Issue revenue regulations
- Full rollout of Integrated Tax System
- Expand Large Taxpayer operations
- Initiate joint work with key agencies to strengthen the integrity
of databases and develop capability in revenue forecasting
To Strengthen Enforcement
- Review tax fraud strategies
- Review prosecution strategies
- Develop exchange of information agreement with key agencies
with key agencies (BOC, BSP, SEC, LRA, LGUs)
- Develop inter-agency strategy to minimize tax evasion and money
laundering
- Link BIR's enforcement strategy with government's anti-smuggling
strategy
Malacañang
supports BIR reorganization
Commissioner René G. Bañez continues to earn support
for the recently-implemented organizational revamp in the Bureau.
Malacañang Palace, through a letter signed by Executive
Secretary Alberto G. Romulo, reiterated the Arroyo Administration's
full trust and support to the efforts of Commissioner Bañez
in reorganizing the BIR.
Commissioner Bañez "is committed to raise P 408 billion
as revenues this year...He needs our wholehearted cooperation and
assistance..." Exec. Sec. Romulo appealed in his letter.
Prior to Malacañang's statement of support, Commissioner
Bañez issued a memorandum to all revenuers, calling on the
"better judgement of the affected revenue officers to see"
their re-assignment "not as a threat to their status in the
BIR but an exercise to match competencies with critical area requirements."
The recent re-assignment of revenue officers, he said, "was
not the sole decision of the Commissioner but a collegial effort
of the BIR Management Committee."
The major criteria used in the evaluation and selection aspect
of the re-assignment process, as specified in the memorandum, are:
collection performance; key performance indicators; technical competence;
Integrated Tax System knowledge; office management policies and
strategies; and behavioral factors.
Commissioner Bañez appealed to all revenuers for "support
and assistance in our efforts not only to improve the BIR's revenue
collection performance, but to transform it into an institution
that is the embodiment of the highest values of public service and
civic consciousness." (Elen Capili)
BIR surpasses April target
For the first time since March 2000, a surplus in collection covering
a month is achieved by the BIR in the month of April this year.
Based on the Bureau's collection reports, total collection for
the month of April reached
P 53.592 Billion, which is P 1.769 Billion higher than the P 51.822
Billion collection goal for the period. Said performance translated
to a success ratio of 103.4%.
Compared to last year's collections for the same period, this year's
April collection is higher by P 7.2 Billion or a success ratio of
115.4%.
President Gloria Macapagal-Arroyo was reportedly elated upon hearing
the news, saying it is a positive sign for the government's efforts
to reduce this year's budget deficit which was estimated to be at
P 130 Billion.
The Department of Finance earlier reported that the budget deficit
reached P 28.079 Billion, sharply lower than the preliminary figure
of P 36.717 Billion mainly due to improved revenue collection.
"Meeting our 2001 revenue goal of P 408 Billion is not an
easy task", said Commissioner René G. Bañez.
"But we have put in place measures that are designed to further
improve our collections, and if our April performance is an indication
of things to come, then we might get within the vicinity of meeting
our target", he added. (Rommel Magno)
J
u n e
Support for BIR
reform initiatives snowballs
With Malacañang's declaration
of support to the reform initiatives being undertaken by Commissioner
René G. Bañez in the BIR, several sectors of society
have likewise thrown their support for the on-going transformation
process in the Bureau.
In a manifesto published in the local
dailies, the Civil Society articulated their support for the proposal
of Commissioner Bañez's team to "dismantle corruption,
prosecute erring officials and employees, institute transparent
systems and procedures, and establish a graft-free and efficient
agency."
The business sector, on the other
hand, appealed to all revenue officials and employees to "heed
the call for unity and public service beyond self for the common
welfare."
After extensive consultations with
the business community, revenue experts and civil society groups,
the Foundation for Economic Freedom likewise expressed its confidence
that the proposed transformation of the BIR will "produce the
resources required for effective economic governance."
Other groups who declared their support
for the on-going reform initiatives in the BIR are the Tax Account
Society (TAS), Inc., the Philippine Chamber of Commerce and Industries
and the Foreign Chambers of Commerce of the Philippines
(Pinky Paller)
BIR slashes procurement
spending
The Bureau of Internal Revenue (BIR) achieved a breakthrough in
its procurement procedures that resulted in substantial savings
for the agency.
"Our emphasis shifted to the use of electronic bidding or
e-bidding, which is basiclly sourcing your suppliers using the Internet
technology," Commissioner René G. Bañez said.
"We found out that it is easier to source local and global
suppliers on-line. Purchasing costs are reduced dramatically, at
the same time, efficiency is enhanced because it only takes a short
time to finish the bidding process," he added.
This marks the first time a government agency used the e-bidding
system that reputedly renders transparency, simplicity and cost-effectiveness
to procurement and liquidation processes. The system also requires
minimal manpower and technical expertise that results in huge savings
for the buyer.
"We might be seeing the trend of the future in terms of transparency
and efficiency in government bidding procedures. We hope that through
the encouraging results that we so far garnered, we will see a shift
to the emphasis on new technology," Commissioner Bañez
said.
On one transaction alone, the BIR was able to procure services
at 50.42% less than the starting price because of e-bidding. The
said transaction resulted in savings amounting to P 980,000. Another
deal produced a 48.92% cut in cost that translated to P 477,000
savings.
So far, the BIR consummated three (3) transactions using e-bidding
that resulted to savings amounting to P 1,479,500, a drastic reduction
in spending that will definitely have a positive impact on the government's
expenditure reduction program. (Rommel Magno)
RATIONALE FOR TAX REFORMS
EXTERNAL FACTORS
- Public perception that government lacks fiscal discipline
- Low tax awareness and negative tax consciousness of Filipinos
- Agency is susceptible to political pressures
- Transformation/business plan has no continuity
- Perceived lack of collaboration among government agencies on
prosecution of tax cases
- Business growth and increased taxpayer population
- More complex transactions due to globalization
INTERNAL FACTORS
- Tax System
· Complicated laws and regulations
· Burdensome documentary requirements
· Prone to undue exercise of
discretion
· Susceptible to avoidance/evasion
· Not adopted to Philippine
setting
- Processes and information and communication technology
· Red tape; complicated tax
processes and forms
· Restricted venue for filing
and payment; limited number of Accredited Agent Banks
· Manual audit-prone to abuse
and discretion
· ITS needs to be updated to
keep pace with the current technology
- Organizational structure
· Does not support integration
of operations/functions
· Too many management layers
· Uneven allocation of resources
at the national, regional and district offices vis-à-vis
workload and revenue potential
- Human Resources
· Bloated workforce
· Very low salaries and limited
benefits
· Graft and corruption
· CIR has limited authority
to dismiss incompetent, erring/recalcitrant personnel
· Difficulty in hiring and
retaining technically competent personnel
· Demoralized personnel due
to negative public image and unclear criteria for promotion
- Financial Resources
· Budget constraints
· Inadequate office facilities
and equipment
Vol. 3 No.
11
President's SONA
commends CIR
President Gloria Macapagal-Arroyo, in her first
State-of-the-Nation Address (SONA), expressed her full support to
Commissioner René G. Bañez in overhauling the BIR.
"I throw full support behind BIR Commissioner
René Bañez. He has undertaken a mission many believe
impossible: overhauling the BIR which accounts for 80% of our tax
revenues," the President said.
The President expressed her concern for the Commissioner
for having been "threatened" and "blocked by restraining
orders at every turn".
"This man needs friends who share his goals,
and I know he will find them in this young congress," President
Arroyo said.
The President also emphasized the need to fight
graft and corruption in the government, and specifically cited that…"we
will make the BIR and Customs showcases in this fight against graft
and corruption."
To enhance the collection of taxes, the President
likewise appealed to Congress to enact a law providing for a gross
income tax system. "Alisin na natin ang mga tax deduction na
nagiging sanhi lamang ng katakut-takot na corruption," President
Arroyo said. (Elen Capili)
Sec. Camacho rekindles
TEAM spirit in BIR
Together, Everybody will Achieve More!
This is how Finance Secretary Jose Isidro N. Camacho
spelled out the meaning of TEAM spirit in the BIR in his keynote
address delivered during the 97th anniversary celebration of the
Bureau last August 1.
In his message to all revenuers, Sec. Camacho zeroed-in
on President Arroyo's promise in her SONA "to make the BIR,
together with the Bureau of Customs, showcases of good governance."
"The President is very serious about this
SONA promise. We would have to deliver, and I know that you can
deliver…Now, more than ever, we need to roll up our sleeves
and work together to create more revenues. Bickering, apathy and
complacency should have no place at the Bureau. Focus and unity
is what the times call for," Sec. Camacho said.
According to the Secretary, "we need to be
aggressive and decisive in our reforms." One of the bold reforms
he mentioned is the proposal to shift to a modified gross income
tax system.
"I understand that there are apprehensions
about job security with this new tax system. Let me assure you that
for as long as you embrace your responsibilities with passion and
perform your duties with dignity and integrity, you have nothing
to worry about."
The very simple and austere anniversary celebration
of the Bureau was highlighted with the signing of four (4) Revenue
Regulations (RRs) by Commissioner René G. Bañez and
Sec. Camacho which, once implemented, are expected to increase revenue
collections for the government. (Minnie Quintos)
BIR initiates conduct of
Conference on Reengineering
To provide a venue for the sharing of lessons and
experiences on reform strategies of other government agencies, the
Bureau of Internal Revenue initiated the conduct of a Conference
on Government Reengineering and Change Management last August 2
at the BIR Training Room.
The Conference brought the BIR together with five
(5) other government agencies that have successfully undertaken
reforms or reengineering in their respective organizations. These
agencies are: the Securities and Exchange Commission, Supreme Court
of the Philippines, Bangko Sentral ng Pilipinas, Social Security
System and Government Service Insurance System.
Experts from various social science disciplines
and change management experts from the business sector were also
present during the Conference to give their reactions to the case
study presentations.
In his keynote address, DOF Undersecretary Cornelio
C. Gison said that if the Bureau is "to serve as a showcase
of integrity and competence in public service, then the reengineering
of the Bureau is both inevitable and indispensable".
The Conference was coordinated by the Corporate
Communications Division, and was attended by representatives of
member-agencies of the Presidential Committee on Effective Governance,
representatives of international donor agencies, top BIR officials
and members of the BIR Transformation Project Team.
(Rowena Altura)
BIR distrains sequestered
assets
The Bureau of Internal Revenue has successfully
distrained more than P 160 Billion worth of assets owned by a company
which has been sequestered by the Philippine Commission on Good
Government.
This was initiated by the Collection Enforcement Division (CED)
through the establishment of details of the fund source and tracing
of whereabouts of the deposits, notwithstanding the secrecy of deposits
statute.
The said company is engaged in the business of
telecommunications and was in the process of privatization. Its
delinquent accounts involved assessments dating back as far as 1992.
This is the biggest single collection case of the
CED since its reconstitution in January 2000 under Executive Order
No. 175. Earlier this year, the CED has also successfully collected
more than P 600,000 out of a single 1988 delinquent account case
which was twice dismissed in court. (Ramon
Wilfredo Pagarigan)
Consultation with
internal and external groups continues
Consultative in approach.
This is how Commissioner René G. Bañez
wants the transformation process to happen in the BIR.
In less than three months since May this year,
the BIR Transformation Project Team, headed by Commissioner Bañez
himself, had already covered almost 90% of all BIR offices nationwide
and, in the process, briefed and consulted about 2,000 revenuers
by far, representing the top, middle and rank-and-file levels.
During the briefings/consultations on the BIR transformation
process, the role of the BIR, including the external and internal
factors affecting the Bureau's tax collection performance, was presented.
The Short-Term (Survival) Strategies for 2001 were
also discussed together with the Long-Term Transformation Strategies
to attain the envisioned tax system, tax processes, organizational
structure and human resources.
During each briefing/consultation, a workshop was
conducted wherein issues and recommendations relative to the four
identified areas of reforms were elicited from the participants.
Questions by revenuers regarding the transformation process and
other tax administration issues were also personally addressed by
the Commissioner during the open forum.
All the recommendations and queries of revenuers
during the course of these consultations will be taken into consideration
by the Transformation Project Team, for integration into the final
proposal for the BIR's transformation.
To get the comments of the Bureau's external stakeholders
on the envisioned transformation of the BIR, briefings/consultations
were also held with them. Various sectors were already consulted
which include business groups, the academe, students, labor groups
and several professional organizations. (Monet
Robles)
Vol. 3 No.
12
CSC, DBM support BIR restructuring
"As far as restructuring the BIR is concerned,
you can depend on our full support!"
This was the response of Civil Service Commission
(CSC) Chairperson Karina Constantino-David to the presentation of
the BIR transformation process held on August 14 at the National
Office.
In the joint consultation with the CSC and the
Department of Budget and Management (DBM), Chairperson David and
Director Amelita Castillo of DBM both committed to assign representatives
from their agency to participate in the review of the BIR organization
structure.
Through this approach, all measures toward restructuring
the BIR and formulating new human resource policies and programs
(i.e. the Early Retirement Program) will be done in accordance with
existing CSC and DBM rules and regulations.
With regard to the possibility of implementing
step increments within the year, Director Castillo recommended the
preparation of an updated plantilla, to reflect separate computations
for the 10% and 5% increases, and prior years obligation. (Pinky
Paller)
BIR implements revenue-generating
measures
To boost the Bureau's revenue collections this
year, several Revenue Regulations were issued starting August.
RR 5-2001 specifies that beginning taxable year
2001, all non-resident citizens, overseas contract workers and seamen
are no longer required to file information returns on income derived
from sources outside the Philippines.
RR 6-2001, on the other hand, subjects additional
taxpayers to the final withholding tax and revises the withholding
rates on certain income payments, as well as the time for the filing
of various tax returns and payment of taxes. With the issuance of
RR 12-2001 on September 10, the effectivity of RR 6-2001 was deferred
to transactions starting October 1, 2001.
RR 7-2001 provides for the compromise settlement
of internal revenue tax liabilities of certain taxpayers with outstanding
receivable accounts and disputed assessments with the Bureau.
RR 8-2001, otherwise known as the Voluntary Assessment
Program (VAP), grants taxpayers the privilege of last priority in
the audit and investigation of all internal revenue taxes for the
taxable year ending December 31, 2000 and all prior years. The deadline
for the availment of the Program was changed from September 30 to
October 31, 2001 with the issuance of RR 10-2001.
(Pat Villarica)
Vol. 3 No.
13
DOF, DBM express support
for BIR transformation
In a recently-held Multi-Sectoral Forum on
Tax Administration, both the Department of Finance (DOF) and the
Department of Budget and Management (DBM) expressed support for
the BIR transformation process.
In his presentation of the DOF's position
on the transformation of the BIR, Finance Undersecretary Antonio
Bernardo said that "the BIR should not be alone in the task
of gaining more people faith in our tax system and administration.
That is why the DOF is actively supporting and participating in
the task of reinventing the BIR through meaningful reforms."
Undersecretary Laura Pascua of the DBM, on
the other hand, challenged the Bureau to identify and plug tax leakages
and raise P6.5 billion from administrative measures that are currently
being implemented to meet this year's P388 billion collection target.
"BIR must show that it can implement
the measures they have committed because this will serve as the
more concrete evidence of reform in the BIR and give an indication
of the potential benefits that its reform efforts will bring,"
USEC Pascua said. "The DBM is committed to supporting these
efforts as part of its on-going reform program on reengineering
the bureaucracy," she added.
The Multi-Sectoral Forum, which was organized
by the Foundation for Economic Freedom, was attended by more than
200 representatives from various sectors of society. It was a culmination
of a series of consultations of the BIR with different sectoral
groups wherein insights, comments and suggestions were gathered
about the proposed reform initiatives in the BIR.
Groups consulted include the civil society,
business sector, academe, labor groups, students, consumer organizations,
and civic and professional organizations. (Aileen
Marquez)
Conditions for VAP availment
relaxed
To make the Voluntary Assessment Program
(VAP) more attractive to taxpayers, conditions for its availment
were relaxed.
The rates for the computation of the VAP
amount to be paid for Income Tax (corporation), Value-added Tax
(VAT) and Percentage Tax were reduced in some of the conditions
prescribed following the issuance of Revenue Regulations No. 10-2001.
In the case of VAP computation for Income
Tax of a corporation, the rate for one of the conditions was reduced
from 2% to 1% of the total sales/receipts less tax due and paid
per tax return filed in the covered year.
For VAT, one of the rates was reduced from
20% to 15% of the total output tax declared for the covered year
if the ratio of the VAT payments over the gross sales/receipts for
the year does not exceed 2%. Another rate was reduced from 3% to
2% of the total sales or receipts subject to VAT less VAT paid per
tax return filed in the covered year.
In the case of the Percentage Tax, one of
the rates was reduced from 20% to 15% of the total Percentage Tax
due for the covered year, if the ratio of the Percentage Tax over
the gross sales/receipts does not exceed 2%. Another rate was reduced
from 3% to 2% of the total taxable sales or receipts less the amount
of tax due per tax return filed in the covered year.
For the 3 types of taxes specified, the taxpayer
will pay the highest VAP amount computed in all of the conditions
prescribed in RR 10-2001.
The deadline for the availment of the VAP
was extended until October 31, 2001. (Elen
Capili)
DCIRs unveil BIR Service Pledge
In commemoration of the 101st anniversary
of the Civil Service Commission, the Deputy Commissioners unveiled
the Bureau's Service Pledge during the flag-raising ceremony held
at the National Office on September 24.
The unveiling ceremony coincided with the
renewal of commitment to service of all civil servants, which was
done through mass oath-taking and prayer led by President Gloria
Macapagal-Arroyo via live broadcast of the event in Malacañang.
In her speech, President Arroyo congratulated
the civil servants who have consistently rendered their duties with
the highest integrity, morality and decency. "May you continue
to serve as models and trail blazers for other s in government",
the President said.
Consistent with the President's message,
DCIR Estelita C. Aguirre led revenuers in reciting the Bureau's
Service Pledge, which expresses the BIR's commitment to provide
excellent service to taxpayers. (Elen
Capili)
Former Commissioner of
Peru visits BIR
Former Commissioner Manuel Estela of the National
Authority for Tax Administration (Superintendencia Nacional de Administracion
Tributaria-SUNAT) of Peru met with top revenue officials and the
BIR Transformation Management Team to share his country's experiences
and lessons learned in undertaking tax administration reforms.
His wee-long visit (From September 19 - 27) started
with a meeting with the BIR Management Committee, headed by Commissioner
René G. Bañez, wherein he was oriented about the Bureau's
organizational profile, transformation plans and organizational
development/change management framework.
A series of meetings with Señor Estela were
then held by the BIR Transformation Management Team to discuss SUNAT's
experience in managing reforms, as well as to solicit recommendations
on how to successfully implement reform initiatives in the BIR.
Señor Estela's visit in the country was made possible through
the support of the United States Agency for International Development
and Accelerating Growth Investment and Liberalization with Equity
(USAID-AGILE). (Monet Robles)
BIR officials get new assignments
Commissioner René G. Bañez ordered
top revenue officials to report to their new assignments with the
issuance of Revenue Travel Assignment Orders (RTAOs).
Assistant Commissioner (ACIR) Lucita Rodriguez
was appointed ACIR for the Taxpayers Assistance Service (TAS), replacing
ACIR Leonardo Albar who was designated as ACIR for the Office of
Deputy Commissioner for Operations Group.
Designated as Acting ACIRs are: Lucina Galera for
Human Resource Development Service (HRDS); Teresita Luchico for
Policy and Planning Service; Erlinda Simple for Inspection Service;
and Victoria Santos for Information Systems Development Service
(ISDS).
Five other revenue officials were designated as
Acting Head Revenue Executive Assistant (HREA), namely Zenaida Chang
for the Financial and Administrative Service; Ma. Rosario Enriquez
for Information Planning and Quality Service; Carolyn Ann Reyes
for ISDS; Aida Simborio for TAS; and Carolina Pesayco for HRDS.
Revenue officials who were designated as Acting
Division Chiefs are: Jose Perfecto Salazar, for the Quality Assurance
Division and Lilibeth Maranan, for the Systems Standards and Technology
Management Division. (Minnie Quintos)
Vol. 3 No.
14
PCEG gives
go-signal for BIR restructuring
"If we are to attain
true economic stability, then the reform of the entire tax administration
system is urgent and inevitable."
This was the message of Commissioner
René G. Bañez to members of the Presidential Committee
on Effective Governance (PCEG) as he presented to them the BIR Transformation
Process last October 4.
The PCEG, which is chaired
by Executive Secretary Alberto Romulo, expressed appreciation for
the Bureau's efforts to improve tax administration.
Though members of the PCEG
gave the Commissioner the go-signal to realign personnel and upgrade
positions, they also gave some recommendations on how the BIR should
approach restructuring and recreation of human resources.
"Do not implement reorganization
and Early Retirement Program at the same time," said Exec.
Sec. Romulo.
Since the BIR was advised
not to get out of the Salary Standardization Law, CSC Chairperson
Karina David and DBM Secretary Emilia Boncodin suggested instead
the design of the Bureau's own incentive program that will address
the issue of low salaries of revenuers.
Relative to this, the design
of a "strict" performance evaluation system was suggested
to serve as basis for the grant of incentives to revenuers. (Ruth
Llausas)
Survey yields mixed
results
Of the 1,200 persons surveyed,
38% are satisfied with BIR performance while 32% are dissatisfied.
This is one of the findings of the nationwide taxpayer perception
survey conducted by the Social Weather Stations (SWS) for the BIR
wherein the Bureau got a positive six percent (+6%) net performance
rating.
Although the public expressed a positive view on the overall performance
of the BIR, 51% still sees the need to curb corruption as the most
important objective of a good tax system. This was followed by ensuring
tax payment according to law (at 27%) and collecting enough funds
(at 17%).
When asked about the perceived
extent of corruption in the BIR, 31% answered that there is a lot
of corruption in the BIR, with only 8% saying that there is none.
The public, however, now sees
the source of corruption as coming from both the corrupt tax collectors
(50%) and corrupt taxpayers (49%). This is an improvement compared
to the perception of the taxpaying public six years ago wherein
58% identified corrupt tax collectors as the main source of corruption.
On the issue of tax evasion,
80% of the respondents feel that evading payment of taxes is unfair
to those who pay the correct tax.
The survey was conducted by
the SWS from July 9 to 27, 2001 for the Accelerating Growth Investment
and Liberalization with Equity Project. (Pat Villarica)
BIR conducts organizational effectiveness
study
In preparation for the conduct
of the BIR Strategic Planning Session this November, an organizational
effectiveness study is being conducted to determine the present
state of the Bureau's tax and business processes, organizational
structure and human resources.
The study is being undertaken
through the assistance of the United States Agency for International
Development and Accelerating Growth Investment and Liberalization
with Equity (USAID-AGILE).
To gather data, representatives
from AGILE are interviewing all revenue officials from the Commissioner
down to Division Chiefs. The interview questionnaire covers the
organizational components that effect the Bureau's efficiency and
effectiveness.
A survey of rank-and-file
employees is also being conducted to determine the issues concerning
the Bureau, in general, and each unit or division, in particular.
(Monet Robles)
BIR officials reshuffled
Eighteen (18) revenue officials
were either promoted or transferred to new posts, following the
issuance of Revenue Travel Assignment Order Nos. 19-2001, 22-2001,
23-2001 and 24-2001 last October 8.
Those who were transferred
include: Regional Director (RD) Lucien Sayuno, from CAR, Baguio
City to San Pablo City; RD Estrella Martinez, from Tacloban City
to CAR, Baguio City; RD Teodorica Arcega, from San Pablo City to
Davao City; Assistant Regional Director (ARD) Norberto Vitug, from
Iloilo City to Calasiao, Pangasinan; ARD Anselmo Adriano, from San
Pablo City to Manila; and ARD Merlinda Ordoyo, from Bacolod City
to San Pablo City.
Among those who were promoted are: Lirio Cabsaba, from Regional
Director of RR 19-Davao City to Acting Assistant Commissioner of
Collection Service; Marietta Lorenzo, from Chief, Large Taxpayers
(LT) Program Division to Acting Head Revenue Executive Assistant
of Policy and Planning Service; Nema Benita Larines from Asst. Chief,
LT Program Division to Acting Chief of Planning Division; Romeo
Buan, from Asst. Chief, RR 3-Legal Division to OIC-Chief, RR 4-Legal
Division; Rolando Ligon, Jr, from Technical Assistant of the Legal
and Inspection Group to Acting Asst. Chief of Appellate Division;
and Bagro Saransamun from Technical Assistant of RR 18-Cotabato
City to Revenue District Officer of RD 109-Tacurong, Sultan Kudarat.
(Pinky Paller)
Vol. 3 No.
15
BIR
collects P 1.3 Billion through VAP
Per data released by the Bureau's National Command
Center, collections made by Authorized Agent Banks (AABs) under
the Voluntary Assessment Program (VAP) already stood at P 1.327
Billion as of October 31, 2001.
Said figure does not include yet the collections
made by Revenue Collection Officers and Deputized Municipal Treasurers
in areas not served by AABs.
The top three (3) offices in VAP collections are:
Large Taxpayers Service at P 180.86 Million, RDO 29 - Tondo at P
89.65 Million and RDO 47 - East Makati at P 76.99 Million.
Due to the difficulty in the cash flow of business
establishments resulting from the September 11 terrorist attack
in New York, the deadline for the availment of the VAP was extended
until December 15, 2001. A more flexible manner of payment was also
provided to taxpayers under Revenue Regulations No. 16-2001. (Atty.
Nelson Aspe)
BIR decisions render 67
personnel dismissed
Since 1997, a total of sixty-seven (67) revenue
personnel were dismissed from the service, per recommendation of
the Bureau and confirmation by the Department of Finance.
The decision for forty-three (43) of said personnel
are already final and executory. The remaining twenty-four (24)
personnel still have pending Motion for Reconsideration/Appeal.
Majority of the dismissed revenuers were Revenue
Collection Officers/Agents who, upon audit, were found to have unremitted
collections, incurred cash shortages, falsified and tampered Official
Receipts and misappropriated revenue collections for personal gain.
On the other hand, based on the records of the
Personnel Division, one hundred seventy-one (171) personnel were
dropped from the rolls of the Bureau from 1997 to October 18 this
year, for having been continuously absent without approved leave
(AWOL) for a period of at least thirty (30) calendar days. (Aileen
Marquez)
Tax treaties
with Bahrain, Vietnam signed
Tax treaties for the avoidance of double taxation
and prevention of fiscal evasion of the Philippines with Bahrain
and Vietnam were signed last November 7 and 14, respectively.
The Agreements were signed at the Malacañang Palace in the
presence of President Gloria Macapagal-Arroyo, both on the occasion
of the official visit to the Philippines of Bahrain Prime Minister
Shaikh Khalifa bin Salman Al Khalifa and Vietnam President Tran
Duc Loung.
Negotiations for a similar treaty were started
last August 20 to 23 with Brunei Darussalam in Bandar Seri Bagawan,
Brunei.
The Philippine delegation was headed by Commissioner
René G. Bañez, while Director Hj Mohd Rosli bin Hj
Sabtu of the Ministry of Finance chaired the Brunei delegation.
The tax treaties aim to promote international trade
and investment between the Philippines and the three countries by
allocating taxing jurisdiction between the Contracting States to
minimize double taxation of income. These treaties will likewise
permit the Contracting States to better enforce their domestic laws
through mutual cooperation in curbing tax evasion. (Consorcio Olivan)
BIR increases collections
from LT stop-filers
The Bureau's collections from large taxpayer (LT)
stop-filers has increased by more than 41% compared to previous
year's collections from the same source.
Based on the report of the Large Taxpayer Collection
and Enforcement Division, collections from LT stop-filers for the
period January to October 2001 has reached P 219.33 Million, surpassing
last year's collections by P 90.89 Million.
The increased collection is attributed to the Division's
intensified drive to identify and collect taxes from LT stop-filers.
This resulted to the identification of 118 LT stop-filers during
the first ten months of the year, which is 228% higher than last
year's number. (Bernadette Ongsotto)
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