BIR collects P4 billion back taxes in H1

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has collected more than P4 billion from filing lawsuits against tax evaders and shutting down the operations of violating firms.

The BIR yesterday reported it lodged a total of 84 complaints before the Department of Justice in the first semester, collecting P3.15 billion in back taxes from tax evaders.

Under the Run After Tax Evaders (RATE) program, the BIR is also working on another 17 cases filed before the Court of Tax Appeals in pursuit of P1.54 billion in back taxes.

Likewise, BIR Deputy Commissioner Arnel Guballa said the agency ordered the closure of 274 business establishments through the Oplan Kandado. In turn, the BIR collected P1.01 billion in dues from enterprises found committing multiple violations against the tax codes.

In the first semester, Guballa said the BIR captured thousands of pieces of heated tobacco and vapor products in Metro Manila malls. The goods, branded as Relx and SnowPlus, were owned by retailers who have yet to pay the corresponding taxes for selling smoking devices.

The STAR in July reported that BIR Revenue Region 6-Manila went on a string of raids around malls in Metro Manila, confiscating at least 3,545 pieces of heated tobacco and vapor products.

Based on BIR records, the retailers of the seized goods owe the government more than P875,000 in excise taxes and P104,000 in value-added taxes. The BIR has asked them to pay their dues before they can retrieve the items taken from them.

Last year President Duterte approved Republic Act 11467, which imposes the tax rates on heated tobacco and vapor products.

Under the law, heated tobacco is charged an excise of P25 per pack, increasing by P2.50 every year until 2023 and by five percent annually by 2024. Vapor, on the other hand, is applied a tax of P37 per milliliter, adding P5 every year until 2023 and by five percent yearly by 2024.

According to Guballa, the BIR also seized 27,123 packs of contraband cigarettes in a compound in Pampanga, along with raw materials and chemicals for making cigarettes. The agency seized as well 2.06 million pieces of internal revenue stamps, two packing machines and raw materials in another warehouse in the province.

Guballa said the government squandered P1.56 billion in tax leakages from the activities in both the Pampanga warehouses.

The BIR pursues the RATE program and Oplan Kandado as part of its measures to improve tax compliance among individual and corporate taxpayers.