The biggest revenue collecting agency of the country had a tax collection reaching to Php1.643 trillion and it is thanks to the reforms introduced by the Duterte adminstration with three specific main objectives: attain collection targets, improve taxpayer satisfaction, and protect revenues and recapture public trust.
The BIR released a statement on Wednesday during their anniversary, compared with the same 12-month period last year. theor agency collected almost 9 percent more from July 2016 to June 2017. The said increase is attributed to the ongoing tax reforms of the curent administration.
Last year, the BIR failed to reach its target of Php1.62 trillion, it's collection still rose to Php 1.567 trillion.
Setting a Php 881.7 billion goal for the BIR's first-half tax collection, the agency grew 8 percent year-on-year taking Php 848 billion which is 4 percent lower than the goal.
The BIR said, "a 5-percent increase in taxpayer base or 882,615 new registered individuals and 32,306 new registered corporations helped increase collection performance."
Also, "as of June 2017, a total of 1,463 new personal were hired to improve taxpayer service while documentary requirements and processes were streamlined—for example, for business registration, from 13 to five documents, and from seven to three steps."
The bureau also administered punishments and investigations on revenue officers whom taxpayers had complains.
"In fact, 379 revenue officers were called to explain due to taxpayer complaints. This is after Commissioner Caesar R. Dulay suspended all BIR audit, which is said to be the source of corruption. Erring examiners were put under investigation after being asked to resign if they will not stop corrupt practices," the BIR exclaimed.
Commissioner Dulay suspended audits and revoked letters of authority that authorizes revenue officers to conduct examinations on taxpayers' books for determining the exact tax liabilities.
"While Commissioner Dulay suspended all BIR audits during his first three months, he led an intensive tax enforcement generating P53 million from tax mapping operations of 169,351 establishments, P142 million from ‘Oplan Kandado’ wherein 55 establishments were closed, and at least P40-billion estimated liabilities fro 40 Run After Tax Evaders (Rate) cases filed to the Department of Justice," according to the BIR.
The BIR filed three tax evasion cases against the homegrown cigarette manufacturer Mighty Corp. and to its top executives for their Php37.9 billion unpaid taxes from using fake tax stamps.
President Duterte gave directives to the BIR and Department of Finance to accept the Php25 billion tax settlement of Mighty under the condition that the firm "will no longer engage in the tobacco business".
"This will be the biggest tax settlement on record. It will produce a windfall for government, which is significant, since we face the unexpected costs of rebuilding Marawi and Ormoc," Duterte said during his SONA.
According to Finance Secretary Carlos G. Dominguez III, the government is expecting to collect Php30 billion settlement from Mighty and currently, it has accepted an initial payment of Php 3.44 billion from Mighty.