Manila: The Bureau of Internal Revenue (BIR) is cooperating with the International Monetary Fund (IMF) to establish a modern and data-driven tax compliance system in the Philippines. The collaboration aims to bolster the country's tax compliance risk management.

According to Philippines News Agency, the BIR met with IMF experts on September 4 to discuss the operational implementation of compliance risk management (CRM) and regional engagements on CRM activities across selected BIR field offices. During the meeting, they identified recurring compliance risks and common high-risk sectors, including construction, retail, tourism, and e-commerce. The discussions highlighted the need for a strong, centrally managed CRM framework to effectively identify and address compliance risks.

BIR Commissioner Charlito Martin Mendoza emphasized the importance of compliance risk management in accurately identifying significant compliance risks. He stated, 'With better data and risk assessment, we can focus our resources and interventions where they are needed most, while making compliance easier across the taxpayer base.' Mendoza expressed gratitude to the IMF and its technical experts for their continued support to the Bureau.

The BIR's engagement with the IMF supports its shift toward a more risk-based and data-driven approach to tax administration. This partnership aims to enhance the BIR's capability to identify and analyze compliance risks, determine appropriate responses, and continuously improve taxpayer compliance management.