Metro Manila, Philippines – At least two senators have flagged the curious case of the Bureau of Internal Revenue’s integrated system, which they said is reportedly empty — making it difficult to verify tax assessments and payments.
Senate President Pro Tempore Panfilo “Ping” Lacson highlighted the issue regarding the Internal Revenue Integrated System (IRIS) during a hearing on alleged widespread corruption in the BIR on Thursday, Dec. 11. Lacson led the probe as chairman of the blue ribbon committee.
Lacson said he has received reports that the IRIS, a web-based centralized repository of taxpayer information, contains no data.
“Bakit walang laman? Sinasadya ba iyan? Para wala tayong mabalikan na records?” Lacson asked.
[Translation: Why is it empty? Is this deliberate? So we won’t have any records to refer to?]
He noted that because the IRIS is empty, it is difficult to reconcile preliminary and final tax assessments with actual tax payments.
BIR Commissioner Charlito Mendoza downplayed the issue, saying the IRIS is not empty but admitted it is not regularly updated.
“Kaya nga yun yung utos natin… To update the information [That’s why we issued orders… to update the information],” Mendoza said.
Senator Erwin Tulfo, however, reported receiving similar information.
“According to my source sa BIR, an employee, nakakita yung gray area ‘yan nga po na walang laman ‘yung sinasabi niyong IRIS,” he said.
“So hindi mache-check kahit sinong investigating body kung magkano ang binabayad sa gobyerno, magkano ang inassess, magkano lang ang napunta sa gobyerno,” he said.
[Translation: According to my source at the BIR, an employee, they saw the gray area that the IRIS really is empty. So no investigating body can check how much is being paid to the government, how much is assessed, and how much actually goes to the government.]
Former BIR Commissioner Kim Henares, under whose term the IRIS began implementation, said that if there is no information in the system, the accountability falls on the revenue officer, the revenue district office, and the supervisor.
“Actually because you did not fill it up, dapat hindi nakakaissue ng bagong [letter of authority],” she added.
[Translation: Actually, because you did not fill it up, you shouldn’t be issuing new letters of authority.]
LOA issues
A letter of authority (LOA) authorizes the BIR to examine a taxpayer’s records, books, and other documents for tax compliance, marking the start of a full audit.
Senators cited numerous complaints from businessmen who claimed BIR officials and personnel used the threat of LOAs to extort money, among other schemes.
Tulfo pushed for further investigation, suggesting that many BIR officials and personnel may be involved in irregularities.He also asked if the BIR will implement a reshuffle.
“Yes magkaroon tayo ng reshuffle very soon [Yes, we will have a reshuffle very soon],” Mendoza said, adding that it will cover Metro Manila and provinces.
The BIR suspended the issuance of LOAs, mission orders for surveillance, and other field audit activities in November after the complaints were put on the spotlight.
Mendoza said the bureau will next implement reforms, including requiring the BIR Commissioner’s approval for issuing LOAs, instead of just the regional directors, to strengthen checks and balances.
Mendoza replaced Romeo Lumagui Jr. last month. Lumagui, who was also present during the hearing, said he acted promptly on complaints against BIR personnel.
