BIR increased VAT after Oplan Kandado was imposed
Posted on December 30th, 2009
After the implementation of the Bureau of Internal Revenue’s (BIR) Oplan Kandado program, the agency’s preliminary figures on VAT collection as against the total revenue rose from 18% to 22%, according to revenue agency commissioner Nelson Aspe.
More companies now see to it they remit their as a result of the BIR’s drive to shut down establishments that under-declare their sales.
Aspe credits the project of former BIR commissioner Sixto Equivias IV, who signed all the hundreds of closure orders since January, for the 4-percentage point growth in VAT collection. A project which Aspe, now signing all the closure orders, plans to continue.
“We will continue the program but with some slight deviation from the usual,” Aspe said.
In the National Internal Revenue Code of 1997, or the Tax Code, and Revenue Memorandum Order 9-2009, the law provides that business operations can be suspended or temporarily closed for failure to issue receipts or invoices by a VAT-registered or registrable taxpayer; failure to file VAT return; understatement of taxable sales of receipts by 30 percent or more of the correct amount in the case of a VAT-registered or registrable taxpayer; or failure to register.
Companies are collecting VAT payment from their customers, and these should be remitted to BIR regularly. Unfortunately, many companies are under-declaring their sales and do not remit the correct amount they charged the public.
BIR is enforcing closure of the failing business establishment for a period of no less than five days and until the taxpayer rectifies his violations by filing or amending his returns and paying the taxes and penalties due.
The agency launched the Oplan Kandado after they were forced to collect more amid the slowing Philippine economy and the effects of twin typhoons Ondoy and Pepeng in September and October this year.
The revenue agency’s target collection for the entire year is P798.5 billion. A higher target for BIR next year is being proposed by economic managers.
