DILG urges LGUs to work with BIR on taxpayers' info
Cagayan de Oro City (19 September) -- The Department of the Interior and Local Government (DILG) called on all local chief executives nationwide to closely coordinate with the Bureau of Internal Revenue (BIR) on the proper accessibility and exchange of records of taxpayers' information in support of the government's efforts for a more efficient tax enforcement and collection drive.
Secretary Ronaldo Puno issued Executive Order No. 646 dated August 3, 2007 entitled "Accessibility of Information on Taxpayers Between the Bureau of Internal Revenue and the Local Government Units for Tax Collection Purposes," mandating LGUs and the BIR to work together towards improving information and data collection and exchange in aid of tax enforcement and compliance.
In a Memorandum Circular, the DILG Secretary said governors and city and municipal mayors should establish proper coordination and cooperation with the BIR in data accessibility and in any other tax-related information systems as part of the government's steps in the consolidation and technological integration efforts of taxpayers' information records.
Section 2 of the said EO provides that upon proper request from the BIR Commissioner, LGUs shall provide them with any information such as costs and volume of production, receipts or sales and gross incomes of taxpayers, for purposes of ascertaining the correctness of any return or in evaluating tax compliance.
On the other hand, the EO also highlights Section 171 of the Local Government Code of 1991 which similarly provides for the accessibility of records of the BIR revenue district office to the local treasurer for the purpose of ascertaining, assessing and collecting the correct amount of local taxes, fees and charges.
In a press statement, Puno said that "It is indeed necessary for the BIR and the LGUs to make taxpayers' information accessible to each other so that the government can be more aggressive in its tax enforcement campaign, and eventually meet, if not surpass, its tax collection targets."
According to the EO, the Department of Finance shall issue the necessary guidelines for the effective implementation of the provisions of the Order, taking cognizance of the security of taxpayers' information.
The DILG chief likewise pointed out the punitive provision of the EO that failure on the part of the BIR and LGUs to comply with the directives shall make them liable for administrative sanctions pursuant to existing laws, rules and regulations.
For his part, Director Quirino Libunao of DILG Region 10 expressed that through this new directive, our tax collection will certainly be improved and, eventually, the delivery of basic services to the people will be better. (DILG-10) [top]