03/01/2021
BIR exceeds tax goal by P 174 B amid pandemic
Filing of tax cases & “Oplan Kandado” strengthened
Despite the destructive impact to economy of COVID-19 pandemic and its unprecedented challenges in tax administration, the Bureau of Internal Revenue was able to generate an overall revenue of P 1.6 Trillion, exceeding its tax goal of P 1.4 Trillion for the first 10 months of 2020 by P 174 Billion or 12.25%.
Based on the BIR’s comparative report of collections released last November 24, the Bureau has constantly exceeded its monthly tax target with an average monthly excess in collections for the 1st Semester of 2020 of P 32.72 Million or 0.02%.
As the 3rd quarter of the year kicked in, the BIR registered much bigger monthly surplus of P 42 Billion or 35.85%. It was followed by biggest monthly excess in collections of P 70 Billion or 59.20% in August; P 23 Billion or 20.05% in September; and P 38 Billion or 33.68% in October.
The good collection performance of the Bureau can be attributed mostly to vigorous tax enforcement activities; tax campaign/education activities; streamlined/simplified processes, guidelines and procedures; implementation of large scale policies; and other developments in various aspects of tax administration.
Said tax enforcement activities include the filing of tax cases under the Run After Tax Evaders (RATE) Program; closure under “Oplan Kandado” operations of business establishments; and tax assessment/audit activities that entailed issuance of various orders/notices to taxpayers. Through these enforcement activities various tax violations, such as under-declaration of taxable sales by more than 30%, non-registration of business, non-issuance of receipts, and non-compliance with other various tax laws and regulations, are uncovered.
From January to November 2020, the Bureau filed a total of one hundred twenty-five (125) tax cases before the Department of Justice (DOJ) with estimated total tax liabilities of P 4.95 Billion.
Under the “Oplan Kandado” operations, on the other hand, P 569.039 Million total tax payments were collected through temporary closure of one hundred eighty-nine (189) establishments, and issuance of nine hundred eighty-one (981) various tax compliance orders/notices for the period January to October 2020.
Commissioner Dulay said that through concerted efforts of all revenue offices nationwide, the Bureau will continue with enhanced tax enforcement activities to ensure that tax violators will be caught and punished. “May this discourage potential offenders from committing tax evasion in the future. It is also our hope to further raise the trust and confidence of the public in the tax system and so the level of voluntary tax compliance,” he said.
“We need all the support and cooperation from the taxpaying public. Please help us raise the much-needed revenues for the government especially these trying times. Don’t evade taxes, pay your taxes correctly,” the Commissioner added.
