The Bureau of Internal Revenue said it is open to a compromise with delinquent taxpayers to meet its P1.6-trillion collection target.
BIR Commissioner Caesar Dulay told reporters recently the agency was reviewing options in raising revenues.
“… we’d rather encourage tax payers to compromise as long as it’s within the law, to compromise whatever pending assessments they have,” Dulay said.
“We also have a number of cases with the Court of Tax Appeals. Those were the assessments often being questioned and my instruction to our legal department is to try to work out compromise and mediation, because mitigation takes a long time, and it does not help the taxpayer or the government in raising revenue…,” Dulay added.
He said BIR was studying the possible expansion of the compromise settlement program of the bureau.
“… the principle we’d like to adapt is to encourage compromise agreements within the limits of the law,” the BIR chief said.
He said the agency would still pursue existing tax cases filed in the Court of Tax Appeals “in accordance with the rules.”
“I had a meeting with the presiding justice of the CTA and we discussed quite extensively the process of mediation. Mediation is a process where even while the case is pending in court, or pending with the CTA, parties can still discuss and work out some agreements,” Dulay said.
He said aside to the compromise with delinquent taxpayers, the BIR, would continue to address the concerns in the organization, particularly cleaning the agency from corruption and red tape.
“I can say if you look at the website on our accomplishments that we have progressed quite a few in addressing the internal administrative investigation cases…,” Dulay said.
The BIR reduced its revenue target this year to P1.6 trillion from P2 trillion set by the previous administration.
