Recto to SEC: Help enhance tax collection

FINANCE Secretary Ralph Recto called on the Securities and Exchange Commission (SEC) to work closely with the Bureau of Internal Revenue (BIR) to better implement tax collection.

In a statement on Wednesday, the SEC said Recto “specifically urged” the commission to collaborate with tax authorities to streamline data sharing between the two agencies, in line with efforts to “enhance tax collection efficiency.”

SEC Chairman Emilio Aquino, along with the commissioners, presented to Recto the agency’s priority plans, activities and programs during a special meeting at the SEC Headquarters on Tuesday.

“As we push for the development of the capital market and the business sector, we will also closely work together with the BIR and other government agencies in improving tax administration and implementing other reforms to ensure inclusive and sustainable economic growth,” said Aquino.

The corporate regulator said it has ongoing data sharing agreements with the BIR covering financial, beneficial ownership and other information involving companies to address tax evasion and money laundering.

“Secretary Recto commended the digitalization initiatives of the SEC, recognizing their contribution to improving [the] ease of doing business and fostering capital market development in the country,” it noted.

Recto, who assumed office earlier this month, gave assurances to the commission that the Finance department would fully support its existing and upcoming projects to boost digitalization in the business sector, the SEC said.

The Finance chief, the commission said, also vowed to support reforms aimed at improving access to the Philippine capital market for issuers and investors, strengthening financial consumer protection, and promoting financial literacy and sustainability practices.

“Meanwhile, the SEC [is] committed to working more closely with other government agencies in advancing other programs and initiatives aimed at sustaining the Philippine economy’s growth, including the improvement of tax administration,” it added.

Recto has been known for pushing economic reforms, such as the 2005 Expanded Value-Added Tax (VAT) Act, which outlines the expansion of VAT coverage and the increase in the corporate income tax rate, among others.