The Bureau of Internal Revenue (BIR) has initiated investigations into the 2022 Income Tax Returns (ITRs) as part of the measures to hit its P2.6 trillion collection target for this year.
BIR Commissioner Romeo D. Lumagui, Jr. said he had already instructed regional directors across the country to begin serving Letters of Authority (LAs) to both individual and business taxpayers.
"These LAs will enable the assessment of tax compliance and collection of any deficiency taxes owed," said Lumagui.
"The focus of the audit will primarily be on income, value-added, and withholding taxes filed in 2022, as well as those from previous years," he added.
Lumagui previously expressed satisfaction with the high level of tax compliance exhibited by many taxpayers, which resulted in a total tax collection of P841 billion during the first four months of this year.
The amount surpassed the collection goal for the period by over P14 billion and exceeded the actual collection from the same period last year by P98.8 billion.
Lumagui said the collection surpluses is a positive indication that the public is promptly filing their tax returns and paying the correct amount of taxes.
Nevertheless, he said the BIR remains committed to its ongoing campaign against tax evasion.
Lumagui has vowed to impose criminal sanctions on business taxpayers who manipulate their financial statements to minimize tax payments and inflate their profits.
Veterans within the BIR have noted that investigations typically contribute about three to four percent of the bureau's annual total collection, but they have a significant multiplier effect on voluntary compliance.
Many taxpayers choose to pay the correct amount of taxes to avoid severe consequences, such as hefty fines or even prosecution and imprisonment for tax evasion.