BIR urges delinquent taxpayers: Better settle cases out of court

Bureau of Internal Revenue Commissioner Caesar R. Dulay yesterday urged taxpayers with tax evasion cases pending before the Department of Justice (DOJ) to settle the deficiency tax assessment out of court.

However, Dulay said, criminal charges that have already reached the court can no longer be compromised as they are no longer within the jurisdiction of the BIR.

The BIR chief announced the new policy when he addressed separately the tax collection campaign in Malolos, Bulacan, yesterday and in Tuguegarao, Cagayan, last Friday.

It was directly opposite to the stand of former Commissioner Kim S. Jacinto Henares who did not allow such compromise settlement once a complaint was filed with the DOJ under her “fear and shame” campaign Run After Tax Evaders (RATE).

Records showed hundreds of tax cases involving millions or even billions of pesos in back accounts are still on the desks of DOJ prosecutors awaiting review for court filing.

Dulay modified the RATE campaign, applying it only to delinquent taxpayers who ignore or refuse to pay back taxes.

Dulay pointed out that the BIR is principally tasked to collect taxes and not to prosecutor or send to jail taxpayers who have delinquent accounts.

Insiders agreed with the new and lenient policy, noting the low conviction rate of tax cases filed in court. One reason cited is the lack of good lawyers to face the high-caliber lawyers of taxpayers.

Revenue Region No. 5 Director Myrna Leonida expressed optimism that the regional office would be able to hit its collection goal of P35 billion. The regional office covers Caloocan, Malabon, Navotas, and the whole province of Bulacan.