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Full-court press on tax evaders

BIR

“This will be a full court press and we will be unrelenting until we achieve a tax effort that is commensurate with what the legal system provides for.”

That is the strong message of Finance Secretary Cesar Purisima to all tax evaders and corrupt tax collection officials in a press briefing in Malacanang on Wednesday.

The mandate from the President is to send a clear signal to tax collection agencies and players that this administration means business. The government will be aggressive and will start their first action to all know tax evaders and corrupt tax collectors as soon as they’re done reviewing all the documents that they have right now.

Purisima, under the new administration will try to improve the application of the Lateral Attrition Law, which provides a system of reward and punishment for Bureau of Customs and Bureau of Internal Revenue officials and employees depending on their performance. Those who fall short of their collection targets by at least 7.5% would be dismissed from the service, while those who go beyond expectations would be given incentives, which may include cash.

The new administration would like to intensify each agency’s program in reducing corruption. The current programs are Revenue Integrity Protection Service (RIPS – Dept of Finance), Run After the Tax Evaders (RATE – BIR) and Run After the Smugglers (RATS – BOC).

It is reported the some P150 billion in revenue is annually lost due to tax evasion and smuggling.