BIR lacks manpower to go after underground traders

CEBU, Philippines - The Bureau of Internal Revenue-13 admits it lacks enough manpower to expand its tax mapping coverage to the underground economy.

The local bureau has hoped to target more enterprises that operate during big events like the annual Sinulog Festival in Cebu.

Many businesses of any form normally sprout like beans during the festival in hope to attract local and foreign customers.

But several of them do not pay the right taxes, the revenue agency noted.

BIR-13 Director Hermeno Palamine  said he created last year the Task Force Tourists' Haven that would look after establishments frequently visited by domestic and overseas travelers.

A number of potential enterprises are still needed to be taxed but the agency lacks people to utilize the task force, Palamine claimed in an interview.

He also said the task force's existing personnel also have other jobs in district offices.

He described the collection made by the group last year as "not substantial" and that more efforts to rake in more revenues have to be done.

The director called for the need to closely look into the income taxes of tourism enterprises such as restaurants, hotels, bars, souvenir shops, pension houses, resorts, etc.

Revenue district offices have also been asked to intensity collection efforts amid manpower woes which, he claimed, are also experienced in the national agency.

Corporations and individuals with "cannot be located" status are also the target of the tax mapping.

Palamine said the bureau has sister agencies to look after and investigate these delinquent taxpayers. The third party matching system is also aimed at cracking down tax evasion.

The BIR has urged these CBL corporations to settle their outstanding tax obligations.

The effort to boost revenue collections should be geared toward meeting the government's budgetary requirements.  (FREEMAN)