Philippines as a global tax leader

IAm a regular attendee of training sessions, seminars, and meetups. Due to my passion for life-long learning, I seek these opportunities to participate in these events, whether online or face-toface. my varied interests keep me going in looking for these learning activities. These cover a broad multitude of topics, including, among others, Environmental, Social, and Governance matters, Sustainability reporting, technology such as Artificial Intelligence and Data analytics, Futures thinking, Data Privacy, Regulatory compliance Forensic Accounting, Family Wealth and Estate tax planning, and International and global tax developments.

On the aspect of international taxation, I am keenly awaiting the Organization for Economic Co-operation and Development (OECD) Tax and Development Days Forum. This event will dwell on the updates on the OECD’S initiatives to strengthen tax capacity, improve tax policy and compliance in developing countries, and explore future challenges. This online forum is scheduled for March 12 and 13, 2024. (https://www.oecd.org/tax/tax-and-development-days.htm).

I have attended the past three events held from 2021 to 2023. These sessions are engrossing and provide a lot of valuable insights for the various players in the tax community, whether they be government regulators, policymakers, taxpayers, or academicians. For this year’s events, interesting topics shall be discussed during the two-day forum. I will attend the discussions on Developing country perspectives on the implementation of the Two-pillar Solution, New realities of carbon pricing and implications for developing countries, Transfer Pricing and International Taxation capacity building programs: impacts and challenges.

There will also be discussions on Taxation and inequality: policy approaches, Tax transparency and cooperation to enhance tax compliance and the fairness of the tax system, Natural Resource Taxation: challenges and opportunities, VAT on e-commerce in developing countries: work in progress, Fighting tax crime: A holistic approach to capacity building, and Tax Inspectors Without Borders: an effective tool for mobilizing domestic resources in support of the SDGS.

It’s a must that officials from the Department of Finance and Bureau of Internal Revenue (BIR) attend this online forum. They will be able to get the latest developments on important issues arising in the global tax community. The BIR joined the OECD/G-20 Inclusive Framework on Base Erosion and Profit Shifting in October 2023. As a member of this group, the BIR should be updated on developments in the global efforts against tax avoidance that this OECD group is pursuing. The forum will provide inputs that the BIR can consider as it proceeds with its tax administration efforts to meet local and international demands.

I recall my participation at an OECD global meeting in 2010 held in Paris. I was invited as the then Commissioner of Internal Revenue to talk on the topic “The Changing International Climate – Non-cooperative Jurisdictions, Tax Evasion and Avoidance.” In my talk, I dwelled on the impact of the low pay of tax collectors, an unpredictable justice system on the settlement of tax cases, and elite interests that contribute to the environment where tax evasion thrives. I also emphasized that international tax transparency is a promising response to the tax evasion ills. (https://www.oecd.org/site/oecdgfd/44612061.pdf and https://www.oecd.org/site/oecdgfd/44546638.pdf).

The BIR can and should pursue similar engagements to bolster its standing in the global tax community, and in the process, resulting in derivative benefits to the country. BIR Commissioner Romeo Lumagui can share with the global tax community tax administration programs, such as the Run After Fake Transactions, Operation Kandado, Project Suyod or Tax Mapping, the Reconciliation of Listings for Enforcement, raids on establishments dealing with illegal excisable articles, Zonal valuation of transfer of real properties and its Digital Tax Transformation. These programs are unique to the Philippines and the other taxing jurisdictions will be interested to know the Philippine experience on these programs.

To be continued

Joel L. Tan-torres was a former Commissioner of the Bureau of Internal Revenue. He has also held the various positions of Dean of the University of the Philippines Virata School of Business, Chairman of the Professional Regulatory Board of Accountancy, Tax partner of Reyes Tacandong & Co. and the Sycip Gorres and Velayo & Co., and director of various corporate boards. He is a Certified Public Accountant who garnered No. 1 in the CPA Board Examination of May 1979. He is now back to his tax and consultancy practice and can be contacted at joeltantorress@yahoo.com and his firm JL2T Consultancy.