Business Burea Data Made Available to BIR for increased tax collection

July 21st, 2008 --

Executive Order number 646 signed by President Gloria Macapagal-Arroyo is being implemented by the Bureau of Internal Revenue (BIR) and local government units (LGUs). This will call for cooperation by both entities in sharing their taxpayer data so as to improve their tax collection efforts through access of correct information that they have on record as regards to their respective taxpayers.

Some of the information that the BIR can obtain about a taxpayer from the Local Government units are the volume of production, sales receipts and gross income of any taxpayer.

A BIR officer or employee of the LGU can be penalized if they divulge information regarding the business income, secrets of operation, or other confidential information of the business of any taxpayer.

However, with the issuance of EO 646, the BIR and LGUs will make available any information to duly authorized representative for purposes of ascertaining and collecting correct amount of local taxes or charges.

Under this law, upon proper request of the Commissioner of Internal Revenue or his duly authorized representative, the LGUs shall provide the BIR with any information necessary from any taxpayer.

EO 646 states that failure on the part of the BIR and the LGUs to comply with this law shall make them liable for administrative sanction pursuant to existing laws and regulations.

Davao BIR Director Omila-Yap said that a sustained information effort is now being undertaken by the BIR regional office in coordination with the LGUs particularly the Business Bureau to inform the local treasurers and concerned government units like the local finance on the full implementation of EO 646.

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