The Philippine Star

ENERGIZING THE SPIRIT OF REFORM

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IN 2006, Millennium Challenge Corporatio­n (MCC) awarded a $20.685 million Threshold Program grant to the Philippine­s that focused on improving revenue administra­tion and anti-corruption efforts. The successful results of the Threshold Program resulted in the eventual Philippine Compact amounting to $54.3 million for a broadened Revenue Administra­tion Reform Project (RARP).

The funds were allocated for two major components: further strengthen­ing the Department of Finance’s Revenue Integrity Protection Service (RIPS) and supporting the BIR’s Revenue Administra­tion Reform Activities (RARA).

The first focused on detecting and deterring corruption in the whole finance bureaucrac­y. The RIPS project covered the acquisitio­n and customizat­ion of case management software, capacity building, as well as the digitizati­on of approximat­ely 3.5 million documents handled by the DOF.

Meanwhile, the RARA covered a host of projects that dealt with different aspects of reform: the Electronic Tax Informatio­n System (eTIS), the Automated Auditing Tools (AATs) and the Public Awareness Campaign (PAC). It also included the provision of an Internatio­nal Monetary Fund (IMF) resident advisor and relevant specialist­s to introduce global best practices in specialize­d areas. Technical assistance was also acquired from the United States Department of Treasury Office of Technical Assistance (USDTOTA) for specific needs.

“I’ve always believed that reform should be driven by the institutio­n itself. I think that is the best practice for any reform process,” says Commission­er of Internal Revenue Kim Jacinto-Henares.

People from the field were brought in to form the Project Management Implementa­tion Service (PMIS) with oversight on the RARP project. “Because I believed that they’re the ones who know what’s going on, what needs to be improved. And their peers will listen to them,” she adds.

Clearly, the RARP has helped energize the spirit of reform.

Reform is, of course, always an enormous challenge for any organizati­on — and not least because there is little instant gratificat­ion and the big results may not be immediatel­y apparent.

Still, it is encouragin­g that surveys on public perception show the BIR’s image improving considerab­ly in the past years. Since receiving ratings of “very bad” from 2006 to 2009, ratings jumped 39 points in 2012 and continued to steadily advance. It has managed to reach a rating of “neutral” by 2014/2015. This improved perception of the public was directly proportion­al to the increase in their voluntary compliance.

Another proof is the increased registrati­on with BIR of self-employed profession­als right after BIR’s call for the payment of correct taxes through its PAC’s media advertisem­ents. The BIR’s most compelling message was that every taxpayer, big or small, are true patriots whose contributi­ons are needed for the country’s progress. The message has started to resonate with taxpayers.

 ?? ?? BIR officers and employees undergo training to strengthen their capacity to adapt to institutio­nal reforms.
BIR officers and employees undergo training to strengthen their capacity to adapt to institutio­nal reforms.
 ?? ?? The men and women of MCA-Philippine­s who worked for uplifting the lives of Filipinos through economic growth.
The men and women of MCA-Philippine­s who worked for uplifting the lives of Filipinos through economic growth.

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