MANILA, Philippines - The Bureau of Internal Revenue (BIR) has sought the help of the Land Transportation Office (LTO) and the Insurance Commission (IC) for an information-sharing scheme which the tax agency hopes would boost collections and allow it to meet its P830-billion target for the year.
Through a memorandum of agreement, the LTO and the IC have agreed to support the agency through the use of a system known as the Enhanced Certificate of Cover Verification Facility that can verify the registration of motor vehicles covered under the mandatory Comprehensive Insurance and Compulsory Third Party Liability (CTPL) system, thereby ensuring better collection of taxes due on these insurance policies on motor vehicles.
Under the agreement, the IC will maintain a system that will interconnect with the LTO’s facility for subsequent verification of insurance certificates or Certificates of Cover (COCs) and better collection of taxes, fees and charges due to the BIR.
The IC shall require insurance companies to submit or file COCs on the LTO’s required Comprehensive Insurance policies and Compulsory Third Party Liability Insurance policies into the IC’s gateway.
BIR Commissioner Joel Tan-Torres, for his part said the the agency shall have access to the IC gateway and the ECOCVF to determine COC issuances and the amount of taxes paid to the government. It can also obtain reports generated from the Insurance Commission’s gateway and ECOCVF for purposes of industry analysis and tracking.
LTO Assistant Secretary Arturo Lomibao, Insurance Commissioner Eduardo Malinis of IC and BIR’s Tan-Torres signed the agreement yesterday.
“With the system in place and the cooperation of all the contracting parties, the collection of documentary stamp tax and value added tax on the motor vehicle insurance policies will be maximized,” he said.