Sharing of information between LGUs, BIR eyed
Soon local government units would have the power to check on the records of the Bureau of Internal Revenue (BIR) relative to the amount of taxes collected from individual and firms of a certain locality.
This was revealed by Pres. Gloria Macapagal Arroyo to a group of local chief executives during the induction of the new officers of the League of Cities of the Philippines (LCP) and the League of Provinces.
Mayor Jerry Treñas, the new chair of the LCP, said Pres. Arroyo will soon issue an executive order to put into effect such proposal.
He said, it is a reiteration of the President's support to the local government units. The scheme is aimed to increase the revenue collection, both from the local government and the national government. It will benefit both the national and local government unit.
Treñas said with such plan, the bureau and the City Treasurer's Office will exchange information regarding the people, firm or corporation of their computed tax payment. The bureau base their tax collection on the income tax return while the treasurer's office base their tax collection on gross sales, said Treñas.
The bureau and the treasurer's office will compare their records and probably come up with one consolidated record of the tax payer. The plan is far different from the system being observed now as it is only the bureau who can check on the records of the City Treasurer's Office, said Treñas.
The bureau's report may contain details and figures that are different from the treasurer's office. The proposal will help the local government in precise computation of its Internal Revenue Allotment (IRA). The allocation of IRA is expected to decrease with the approval of some municipalities into cities.
The LCP has opposed the conversion of the different towns in the country into cities. They have made an appeal before the high court.