Large taxpayers division targets P43.7B collection

The Large Taxpayers Division in Cebu is projected to collect P43.70 billion this year.

Last year, tax collection of LTD-Cebu reached P32.78 billion, which has since grown by 263.41 percent from P9.02 in 2010.

LTD-Cebu recently launched its 2017 tax campaign attended by CEOs, CFOs and COOs of large taxpayers, and tax practitioners.

LTD-Cebu has currently more than 200 large taxpayers. LTD-Cebu Chief Ma. Socorro Lozano stressed the critical role of taxpayers in tax compliance, saying it is a key component in the government’s changing platform.

She also urged taxpayers to pay the correct amount of taxes.

LTD-Cebu had welcomed its 90 newly-enlisted taxpayers but also let go of the 34 companies which already joined the newly-created LTD-Davao.

Large Taxpayers Service (LTS) Assistant Commissioner Teresita Angeles cited the big contribution of large taxpayers to the overall collection of the Bureau of Internal Revenue.

She said that of the P1.576 trillion taxes collected by BIR in 2016, 62.44 percent of the said amount was from the LTS collection.

LTS started with just around 500 taxpayers in its fold and a collection performance of around P200million.

Before the recent enlistment of new large taxpayers, LTS had around 2,320 taxpayers and a collection near the trillion mark of P963 billion in 2016.

This year, the LTS will have around more than 3,000 taxpayers with a collection goal of around P1.2 trillion.

All large taxpayers are challenged to be part of the pressing task of collecting the enormous collection goal of the LTS.

The BIR is seeking to expand its registry of large taxpayers from 2,320 to 3,000 in the next couple of years to improve the agency’s tax collection effort and increase government revenue.

The tax agency is set to identify more companies which should be put under the LTS supervision.

The current number of registered large taxpayers is deemed small considering the rapid expansion of the economy.

Expanding the large taxpayers base would enable the BIR improve its tax collection effort and better meet its collection targets.

In addition, LTD-Cebu also recognized City Savings Bank as its top contributor for 2016, its fourth in last four consecutive years.

The bank posted the highest combined amount of income and business tax payments of around P1.93 billion during the said taxable year.