Duterte gov’t wants more large taxpayers in 2017

MANILA, Philippines – The administration of President Rodrigo Duterte wants to increase the number of the country’s largest taxpayers, in a bid to achieve its over P1-trillion tax collection target for 2017, which will be used to fund the Philippines’ ambitious infrastructure plans, among others.

Facing some 2,320 of the country’s largest corporate taxpayers, Duterte reminded them to pay taxes correctly and promised that he will not tax them “unrealistically” in return.

“On taxes, just pay taxes correctly… I won’t tax you to death if I know it is unrealistic,” Duterte said in his speech at the Bureau of Internal Revenue (BIR) event in Pasay City on Monday, February 6.

The BIR set a P1.152-trillion collection target this year for the country’s largest taxpayers, who contribute at least 62.44% of the bureau’s revenue collection. (READ: Top 100 corporations: Only 39 are on BIR taxpayers list)

This is a bit lower than the targeted collection of the BIR’s Large Taxpayer Service (LTS), pegged at P1.230 trillion.

Last year, the LTS only collected P963 billion, which is still 12.13% higher than that of 2015.

Banks, tobacco, as well as wholesale and retail trade contributed the most to LTS collection in 2016.

For Finance Secretary Carlos Dominguez III, the number of registered large taxpayers is “rather small, considering the rapid expansion of the economy.”

“If we are able to significantly add the number of large taxpayers, supervised by the LTS, I am sure that we can increase the tax effort equally significantly,” Dominguez said during the event.

The LTS unit monitors and analyzes the payments of large taxpayers. They are those with a net worth of at least P300 million and pay an annual income tax and withholding tax of at least P1 million.

The LTS unit also covers the top 1,000 corporations in the Philippines.

Speaking in behalf of the large taxpayers community, Lance Gokongwei said they will ensure compliance with the country’s tax laws.

“We immensely appreciate this approach you are taking and are only too happy to be your partners in this initiative to ensure and enhance compliance with our tax laws,” said Gokongwei, the president of JG Summit Holdings Incorporated.

“When it comes to tax administration, our desire is simple. It should be streamlined [and] not too burdensome set of procedures and processes to make tax compliance straightforward and easy,” he added.

The BIR has a total collection goal this year of P1.829 trillion, higher than last year’s target of P1.62 trillion.

LTS Assistant Commissioner of Internal Revenue Teresita Angeles described the 2017 collection target of the LTS as “huge but achievable.” – Rappler.com