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A STATE-RUN think tank is pushing for the creation of an independent
revenue authority to replace the Bureau of Internal Revenue (BIR).
Lina Isorena, National Tax Research Center (NTRC)
executive director said the creation of the National Revenue
Authority has greater potential of improving the efficiency and
effectiveness of tax administration in the country.
The tax research arm of the Finance department
said that under Senate Bill 2202, the new body shall be composed of
four representatives from the government and three from the private
sector. The government representatives shall include the heads of
the Departments of Finance and of Budget and Management, the
National Economic and Development Authority and the Securities and
Exchange Commission.
Private sector representatives shall be
nominated by peak professional organizations, and appointed by the
President. They must be recognized experts in the fields of
economics, accounting, law, business management and other allied
professions.
The members of the Board shall serve for a fixed
tenure of office with different periods of expiry.
The revenue authority shall be headed by a chief
executive responsible for the preparation of the work program,
organizational structure, annual budget, compensation package and
appointment of rank and file employees, among others.
The authority shall receive an annual service
fee of not less than one percent but not more than 2 percent of
total collection of the immediate preceding year, net of local
government shares.
The NTRC said the creation of the revenue
authority would address the existing institutional and other
constraints besetting the BIR.
“Corporatizing the BIR will afford it more
flexibility particularly in terms of providing competitive
compensation package to enable it to attract and retain the most
qualified people who will undertake the tax administration functions
anchored on performance-based personnel management program,”
Isorena said.
The NTRC also stressed the need to complete the
computerization program and the review of existing tax laws as the
establishment of the authority would not solve the anemic revenue
generation and weak tax administration.
-- Chino S. Leyco
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