Bureau of Internal Revenue (BIR) Commissioner Lilia Catris Guillermo has come out with new procedure to accelerate the collection of deficiency taxes of big business enterprises.
Guillermo authorized the large taxpayers service (LTS) to issue final assessment notice (FAN) and formal Letters of Demand (FLD) to taxpayers under the BIR jurisdiction.
The LTS collects roughly 70 percent of the annual total take of the bureau and handle the investigation of multinational, inter-related and other big companies.
Under Revenue Delegation Authority Order No. 7-2022, Guillermo said the FAN and FLD should no longer be signed by the deputy commissioner for operations but by the LTS chief, or the service's head revenue executive assistant.
Informed sources said Guillermo simplified the audit process to hasten the collection of deficiency taxes from this single biggest source of funds.
The BIR has not yet officially released it's take for the first semester of the year, but same sources disclosed it has been sustaining substantial shortages as many conglomerates are using their value -added tax credits to partly settle their tax liabilities due to the effects of Covid-19 on their operations.
They said the continued suspension of investigation also contributes substantially to the collection shortfall as many taxpayers take advantage of the audit lull.
The Tax Code allows the BIR Commissioner to delegate her power to subordinate with the rank of a division chief, or higher.