BIR to use Singapore audit scheme to increase tax collection

Published June 23, 2022, 8:41 AM

by Jun Ramirez

The Bureau of Internal Revenue (BIR) will use the audit procedure used by Singapore and other developed countries to increase tax collection.

Incoming BIR Commissioner Lilia Guillermo said the Singapore model has been effective in collecting deficiency taxes from both individual and corporate taxpayers.

The audit system uses computers in determining the tax liabilities of taxpayers by matching their income declaration with information supplied by third parties who are mostly their customers and suppliers.

“There will be less or no more physical contact with taxpayers which is the major source of corruption in the bureau, said Guillermo who was previously the agency’s deputy commissioner for information system group.

She said taxpayers may answer, or rebut online the BIR findings.

Guillermo said the computer system will automatically issue the Letter of Authority (LA) to investigate against those with erroneous tax declaration.

The 30-year BIR veteran initiated the digitalization of the bureau starting from the electronic filing and payment systems.