BIR to expand registry of large taxpayers

The Bureau of Internal Revenue (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.

Finance Secretary Carlos Dominguez gave the marching order to the BIR to identify more companies which should be put under the supervision of the Large Taxpayers Service (LTS) of the bureau.

“As of 2016, there are 2,320 large active taxpayers registered to the LTS... I find the number of registered large taxpayers rather small considering the rapid expansion of our economy,” Dominguez said during the BIR LTS Tax Campaign kick-off on Monday.

“The first task for the LTS... is to seriously review and update the registry of large taxpayers,” he said.

Dominguez chief emphasized that expanding the large taxpayers base would enable the BIR to improve its tax effort and better meet its collection targets.

“If we are able to significantly add to the number of large taxpayers supervised by the LTS, I am sure that we can increase the tax effort equally significantly,” Dominguez said.

In response to this, BIR Commissioner Caesar Dulay said the agency would prioritize expanding its taxpayers base and work on increasing the list of large taxpayers to 3,000 in the next two years.

“We’re working on it. I signed some letters already advising some taxpayers, which they have identified, to start reporting under the LTS,” Dulay told reporters on the sidelines of the event.

“If it’s not done this year, if we are able to do it next year... then that will really improve collections,” Dulay said.

With their inclusion into the LTS registry, these potential firms would pay their taxes to the LTS offices at the national level, instead of the regional offices of the BIR.

Dulay said this would also enable the regional offices to better concentrate on collecting taxes from the medium taxpayers.

Currently, the BIR is working on the framework to classify medium taxpayers and small taxpayers as it moves to expand its taxpayers base. Dulay said it will be out and applied within the year.

Medium taxpayers would pay their obligation at the BIR regional offices, while small taxpayers would settle their taxes at the district level.