Government sees better coordination in fight vs smugglers, tax evaders

MANILA, Philippines - The Department of Finance, the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) are expected to have better coordination in the government’s fight against smuggling and tax evaders given the thrust of the Aquino administration to improve tax administration instead of slapping new taxes.

“We would see better coordination among the departments and offices,” said Finance Undersecretary Estela Sales.

She said there would be a concerted effort against tax evaders and smugglers.

Estela handles the filing of cases under the government’s Revenue Integrity Protection Service (RIPs), its program against corrupt government officials.

Newly installed BIR Commissioner Kim Henares also said she would also work closely with Justice Secretary Leila de Lima for the prosecution of cases filed by the BIR against individuals and corporations for evading taxes or for smuggling goods into the country.

President Aquino has consistently vowed to shore up revenues by improving tax administration instead of slapping new taxes.

Aquino believes that the government needs to plug the revenue loopholes first before slapping new taxes.

Henares said slapping new taxes would be a last resort of this administration.

Newly appointed Finance Secretary Cesar Purisima has also said that the Aquino administration would not discriminate in its fight against tax evaders, however big their names may be.

The new administration is doing a review of the macroeconomic assumptions set by the Macapagal-Arroyo administration including the revised budget deficit goal of P300 billion.

Purisima said the current administration expects to finalize the review within two weeks.

As of end-May, the budget gap has already hit P162.1 billion, already breaching the first half deficit ceiling of P145.2 billion and above the budget gap in the same period last year of P123.2 billion.