424. the 2014 priority projects of the bir rcu 02 06 14

7/27/2019 424. the 2014 Priority Projects of the BIR RCU 02 06 14

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BDB Law’s “Tax Law for Business” appears in the opinion section of Business Mirror every Thursday.

The 2014 priority projects of the BIR

BEING the primary revenue-collection arm of the government, the Bureau of Internal Revenue

(BIR) plays a vital role in the economic development of the country. This year the government is

in dire need of huge tax collections to fund the rehabilitation of the disaster-stricken areas,

particularly in the Eastern Visayas region. This is in addition to the massive infrastructure-

development projects that the government has envisioned to accomplish within the next few

years.

With the government’s goal of funding these projects internally, the BIR has been tasked to

raise a revenue target of P1.456 trillion in a span of 12 months. In an effort to meet this

collection target, the BIR is expected to be more stringent in the implementation of our tax laws.

Perhaps, the BIR is expected to issue new rules in an intensified effort to collect what is due to

the government.

As a jumpstart, the BIR recently issued Revenue Memorandum Circular 4-2014 setting out the

bureau’s 21 Agency Priority Programs for CY 2014. Majority o f these programs are geared

toward the improvement of the electronic-filing and data-matching system of the BIR.

One significant development, which the bureau has set to implement is the so-called e-Linkage

System with the Bureau of the Treasury (BTr). Under this program, a system will be established

for the electronic exchange of information or data between the BIR and the BTr. This project

aims to ensure that all the data on tax payments are captured real time by the bureau and the

same are accurately remitted on time to the BTr and subsequently credited as collection

performance of the BIR.



Another significant development we expect to unfold within the year is the bureau’s Workflow-

Management System, a Web-based system that manages the documents received by the BIR

from the taxpayers. Its main features include the scanning and barcoding of documents for

proper tracking and archiving. Included in the project is the establishment of e-lounges in the

district offices, which will be the site for centralized receiving of documents.

Also on the list is the Invigorated Run After Tax Evaders Program. This program seeks to

identify and prosecute high-profile tax evaders through investigation of large-scale violators of

the tax code. The bureau has been implementing this in the past years but with the inclusion of

this program as one of its priority programs for 2014, the bureau is expected to be more vigilant

this year.

The BIR, likewise, set out its intensified Oplan Kandado Program, aimed at strengthening the

bureau’s imposition of prescribed administrative functions of suspending the business

operations and temporarily closing of business establishments for non-compliance of essential

requirements, such as the issuance of prescribed sales invoices and receipts, among other

things.

Anent the issues affecting cross-border transactions, the BIR is set to launch an Exchange of

Information (EOI) Program with another country. As described in the circular, the EOI is a

mechanism under income-tax treaties where a contracting state requests foreseeably relevant

information from another contracting state for the purpose of carrying out the provisions of a tax

treaty.

This year, the BIR will also launch programs called Strategic Performance Management System

(SPMS) and Career Pathing Program, both aimed at improving the entire work force of the

bureau. The SPMS seeks to link individual performance with the agency’s organizational vision,

mission and strategic goals. The career-pathing program involves a series of job-personmatches that enable the person to grow into greater levels of responsibility, thus, providing the

bureau the required talent to meet its goals.

The other priority programs of the bureau include the Online System for Transfer Tax

Transactions, Electronic Certificate Authorizing Registration, Electronic Tax Information

Systems Project, Implementation of Internal Revenue Stamps Integrated System, Electronic

Official Registry Book, Automated Internal Revenue Allotment Computation, Automated

Issuance of Tax Clearance, Online Accreditation of Importers and Brokers, Online Accreditation

of Printers, Re-engineering of other Business Processes, Web-based Forfeited Asset

Management System, Electronic BIR Forms, and Automated Procurement, Payment, Inventory

and Distribution Monitoring System, all aimed at enhancing the electronic-filing and data-

matching system of the BIR.

Knowing that all these programs will fail without cleaning up the bureau from the stains of

corruption, the bureau has also set an Integrity Management Program, which is an anti-

corruption measure aimed at installing a standard but a flexible approach in ensuring that

standard norms of conduct for public officials are consistently applied.



Our collective cooperation will certainly be of help in the fruition of this year’s goals of the

bureau and the entire country in general.

****

The author is a senior associate of Du-Baladad and Associates Law Offices (BDB Law), a

member firm of World Tax Services (WTS) Alliance.

The article is for general information only and is not intended, nor should be construed as a

substitute for tax, legal or financial advice on any specific matter. Applicability of this article to

any actual or particular tax or legal issue should be supported therefore by a professional study

or advice. If you have any comments or questions concerning the article, you may e-mail the

author at [email protected] or call 403-2001 local 140.

mailto:[email protected]




424. the 2014 priority projects of the bir rcu 02 06 14

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