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THE Department of Finance wants the Bureau of Internal Revenue to
stop the practice of collecting taxes in advance as it creates
confusion in recording the transaction.
Finance Secretary Margarito B. Teves said the
BIR is not required to request for advance tax payments, but this
has been a practice at the bureau ever since.
“This was already stopped by the DOF in April
2007 precisely because of the confusion that arose from it,” Teves
told reporters.
Teves said of the P7.8 billion in tax payments
recorded as tax advances collected by the BIR in December 2006, some
P3.8 billion were actually excise taxes due and paid upon removal or
withdrawal of cigarettes (P2.3 billion) and petroleum products (P1.5
billion).
“This would leave P4 billion in actual
advanced tax payment. Ultimately, it was the decision of the
taxpayer when to pay his taxes based on his cash flow management,”
Teves said.
Tax payment that was advanced represented 7.4
percent of the P54-billion collection shortfall of the BIR and 0.5
percent of the P765-billion collection target last year.
In January, BIR Commisioner Lilian B. Hefti said
the bureau’s revenue collections posted at least 10 percent in
January from P49.735 billion in the same period last year.
With the full year goal of P844.95 billion, the
BIR has to collect at least P70.41 billion a month.
Hefti is appealing with the Department of
Finance for much lower revenue goal this year.
But Teves said at this point, it is too early to
make adjustment on the BIR revenue collection target this year.
The BIR, which contributes 70 percent of the
government’s revenue, has posted a 7 percent shortfall to P712.098
billion against the programmed goal of P765 billion for the period.
It, however, surpassed 2006 collection of P652.732 billion by 9
percent to 59.365 billion
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-- Chino S. Leyco
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