BIR supports creation of Philippine Tax Academy

MANILA, Philippines - The Bureau of Internal Revenue (BIR), often criticized for its poor performance, rampant corruption and failure to meet government targets, said it needs more training in tax collections to meet revenue goals.

The agency is supporting a proposal filed at the Senate seeking to create the Philippine Tax Academy, saying that it would help the agency upgrade its skills and develop the expertise of BIR officials.

Senator Panfilo Lacson has filed Senate Bill 3206 otherwise known as the Tax Academy Bill, creating a training institute for BIR officials.

In a position paper submitted to Lacson, chairman of the Senate ways and means committee, the BIR said the establishment of the academy would help improve the agency’s operations.

“The establishment of the Philippine Tax Academy will directly help improve the BIR’s collection efficiency, lessen bureaucratic red tape, revive the integrity of the tax service and boost the morale and capability of the BIR personnel. More importantly, the measure has the overall effect of helping the BIR in its efforts to raise revenues and to arrest the current budget deficits,” BIR commissioner Sixto Esquivias IV said in a position paper submitted to Lacson.

The agency, the government’s main revenue earner, said that the key to improving the BIR’s tax administration system is its human resources. As such, the BIR stressed the need to enhance the professional skills of its administrators and collectors and to keep them abreast with the latest tax changes.

The creation of a Philippine Tax Academy, the BIR believes, would put the Philippines at par with its own building, training facilities, curriculum tax collectors and administrators and training staff comprising the corps of professional lectures knowledgeable in taxation, public finance and revenue administration.

The BIR said the Academy should have well equipped and with enough faculty members.

“International best practices suggest that in order to ensure effective training of tax personnel, adequate numbers of instructors are required. For instance, as of 2008, the Malaysian Tax Academy has a permanent faculty of 100 full-time teaching professionals in Management studies, International and Research studies, Taxation studies, Information technology and e-learning. Aside from the permanent faculty, there are 92 support personnel composed of 30 administrative staff and 62 logistic, maintenance and security personnel,” Esquivias said.

It also noted that in Taiwan, the number of training programs and trainees has steadily increased since its inception in 1969.

“International best practices also suggest that a structured training program of tax academies is also necessary in order to achieve optimum results. The National Tax College in Japan, for instance, has been an effective tool in promoting integrity among tax officials. The National Tax College serves as a think tank of Japan’s National Tax Agency and as a training institute solely for national tax officials.