Why is BIR a bluff? #HonestlySpeaking 1. It aims to collect 2 trillion revenues by 2016 with a decreasing budget and without considering the very low salaries of its examiners. Its either the examiners are martyrs for staying in BIR or they have found ways to survive. The BIR has one of the lowest budget appropriations in the government. In 2011, it received only P7 billion to fund its nationwide operations. Fifty percent of this went to the salaries of its employees. An examiner (or Revenue Officer I) receives a little more than minimum wage, net of withholding taxes, as monthly salary to audit at least 30 cases a year, ranging from P1 to P10 billion assessments for each tax case. 2. BIR has been bragging about the trillion revenue collections in 2012 but what did they really do aside from its propaganda to cast fear and shame to taxpayers. They might want to thank the taxpayers for giving them revenues. Almost 80 percent of our national budget is collected through BIR, not by BIR, while 98 percent of our collections comprise voluntary payments. This means taxpayers are voluntarily declaring and paying their taxes, before or even without audit. 3. Can someone explain why BIR is auditing the same companies every year? How much are they collecting again from annual BIR audit? Only 10 percent of the total taxpayers population is audited every year. Audit contributes barely two percent of the total collections, complementing the 98 percent from voluntary payments. There is a set of selection criteria that must be followed every year accompanied by a proposed audit program. This means a taxpayer is audited only if he falls in the set criteria. 4. How many tax evasion cases have BIR won in the last three years with over a hundred cases? How much have we collected from all these cases? I guess, none. Every other week, the BIR files tax evasion cases against different private individuals and corporations allegedly under-declaring income by at least 30 percent. How about politicos and government agencies, including local government units who have failed to pay and remit their taxes? *No politicos in the 2012 individual top taxpayers? While they continue to amass wealth, the poor are getting poorer. We really need a break from all these bluffs! READ: Tax Holiday To Boost The Economy by Mon Abrea on Monday, October 28 Business Agenda (Manila Bulletin)
Posted on: Thu, 24 Oct 2013 00:20:48 +0000