BIR focuses on 3,000 LTS base by end- 2017

MANILA- - The Bureau of Internal Revenue (BIR) is determined on hitting a 3,000-level Large Taxpayer Service (LTS) base by end 2017, after noting the impact of sustained economic expansion on businesses.

To date, there are about 2,320 large companies under LTS, which Finance Secretary Carlos Dominguez III earlier said is too small given the rising number of companies that should be under this group.

BIR Commissioner Caesar Dulay said the 3,000-LTS base is a priority measure.

"It's a priority program. We'll do our best to include them in the tax base. If it's not done this year, if we're able to do it next year, hopefully, if we're still around, then that would really improve collections," he told reporters after the 2017 LTS collection kick-off activity at the Philippine International Convention Center (PICC) Monday.

LTS contributes around 62.44 on BIR's revenue collection.

In 2016, the unit collected PHP963 billion, 12.13 percent higher than its PHP881 billion revenues in the previous year.

This year, the unit was tasked to collect PHP1. 105 trillion, which is the bulk of the BIR's PHP1.829 trillion collection goal for the year.

Dulay said he has signed some letters to be sent to several taxpayers regarding their inclusion under LTS.

He said these taxpayers were considered for tax base upgrade based on their tax returns or benchmarking, which, he said, is continuously being improved.

He said expanding the LTS base, which includes those from Cebu and Davao, will help boost the agency's collections.

Removal of some taxpayers from the regional offices to the LTS will reduce collections of regional offices but Dulay said "regional offices will have to concentrate also on the medium taxpayers."

Meanwhile, Dulay said the agency registered an 18 percent year-on-year rise in revenues last January from the PHP 129.65 billion collections for the same period in 2016.

"Personally, I think the BIR team is quite enthusiastic and they will show this administration what they can do," he added. (PNA)

Source: Philippines News Agency

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