BIR: Calamity won’t affect collection target

CITY OF SAN FERNANDO -- The Bureau of Internal Revenue (BIR) said Wednesday that it is confident to meet collection targets despite the recent calamity that hit Central Luzon.

It also said that it was able to register a collection of P1,275,630,893 for June alone, marking a 11.37 percent growth in their collection.

BIR Regional Director Aracelli Francisco told Sun.Star Pampanga that the recent calamity may affect some from the business sector but commercial activity remains robust for the whole region.

For January to June, the BIR here was able to register a collection of P7,879,958,57, marking a seven percent excess in its 2012 goal for the quarter. The collection is much greater from the collection in the same quarter in 2011 where the collection was registered only at P6,217,660,613.

“These same taxes are the ones used by government to fund relief operations, engineering works and other social services in times of calamities. That is why it is important to really do our part in paying taxes,” Francisco said.

Francisco added that the business establishment must now comply with the payment of all standing obligations with the BIR and face legal actions.

The BIR Oplan Kandado is an intensive campaign that seeks to padlock businesses with unpaid tax dues, as well as those who are engaged in illegal practices such as failure to register, understatement of taxable sales by more than 30 percent, and the refusal to issue receipts.

It is also designed to instill the "fear factor" on non-compliant and recalcitrant taxpayers. Based on experience, according to BIR, under-declaration can go as high as 80 to 90 percent.

Under the Oplan Kandado Program, business establishments that fail to pay the right taxes are temporarily padlocked by the BIR.

BIR officials also noted that for so many years, taxpayers only declare what they want to declare. With Oplan Kandado, the BIR now literally padlocks business establishments that evade payment of correct taxes.

“Taxes are the lifeblood of our government,” Francisco said.