BIR on DU30 crosshairs

Corruption is at the upper level and I’m closely watching that

After ordering an overhaul of the Bureau of Customs (BoC), President Rodrigo Duterte is now training his sight on the Bureau of Internal Revenue (BIR) to press on with his administration’s anti-corruption drive.

In his visit to Romblon last Wednesday, the Chief Executive bared his plans of instituting

reforms to cleanse the agency of examiners who the President said are involved in anomalies.

“Corruption is at the upper level and I’m closely watching that. But some say that there’s corruption at the low level, too. Of course, it affects Filipinos. Customs, BIR. Now, BIR will be next,” he said in his speech during the launch of a solar power project.

According to him, he would lay out suggested changes to tweak the country’s tax system to plug loopholes which erring BIR personnel exploits to commit corruption and defraud government of its revenues.

Mr. Duterte alleged there are some revenue examiners who extort money from taxpayers to bring down tax assessment or address deficiencies.

No mercy vs corrupt

“He will tell you to pay a certain amount, we will assess you P5 million. Give us P2 million and you’ll pay P3 million instead. The ones who benefit from that are the examiners,” he stated.

The President has been relentless in his campaign to rid the government of graft and corruption, last wielding his ax on more than 60 BoC employees last July.

Customs employees are currently on preventive suspension, while the Palace and the Presidential Anti-Corruption Commission (PACC) conduct investigations.

The BIR and Customs, along with the Departments of Public Works and Highways and Environment and Natural Resources are the agencies with the most number of corruption complaints, according to the PACC.

“Customs, the last time I really insisted... I’m not satisfied with six or seven of you going out. I want the 64 with cases in Customs dismissed (from service). And I will insist on that even if I have to put my foot down as president,” he said.

Gross better than net

The President added that he prefers that the taxation scheme returns to the gross system.

“You know what, I suggest to you in all honesty, let us (shift) to gross taxation. Ask anybody, cheating is avoided through gross. In net taxation there are several ways to defraud the system,” he added.

“In the end, if you finish your computation, the examiner will say: Oh, that’s not allowed. Then he will recompute then a bigger amount will appear,” Mr. Duterte noted.

“If the computation is based on gross, then all are included. How much did you sell or earn?” he indicated.

Mr. Duterte said he will work for the shift to gross taxation before he steps down in 2022.