BIR Fails to Collect P47 B - Teves
DUMAGUETE CITY The Bureau of Internal Revenue (BIR) has failed to collect at least R47 billion in annual income taxes from hundreds of establishments that belong to the countrys top 5,000 corporations, Negros Oriental Rep. Herminio Teves said yesterday.
"We have studies showing that the BIR has been unable to collect up to 53 per cent of corporate income taxes. And we are talking here only of (income taxes from) those firms listed by the Securities and Exchange Commission (SEC) among the top 5,000 corporations," Teves said.
For instance, Teves said, the SEC-listed top 5,000 firms declared an aggregate net income after tax that should have yielded at least R89 billion in corporate income taxes in one year. But the BIRs actual corporate income taxes collections that year amounted to only R42.1 billion, or a shortfall of R46.9 billion, he pointed out.
"In addition, the records show that there are 451,309 corporations registered with the SEC. However, BIR records show that less than 11,000 corporations, or less than three percent of registered firms, are actually filing their annual income tax returns," Teves said.
He said the massive leak in corporate income taxes due to weak enforcement and poor compliance was one of the reasons the national governments revenue collections have been deteriorating rapidly. …