2010 BIR Strategy Map

2010 BIR Strategy Map

The BIR formulated a strategy map for 2010 which identifies the programs, activities and projects that it will undertake to attain its revenue goals. Listed as its strategic initiatives for 2010 are the following:

   1.    High visibility public awareness campaign on the enforcement and   service programs
   2.    Integrated approach in administering the large taxpayers
   3.    Re-invigorating the Run After Tax Evaders program
   4.    Enhanced and strategic enforcement approaches
   5.    Focus on big ticket items
   6.    More vigorous third party matching campaign
   7.    Expanded linkage with key institutions
   8.    Effective partnership with taxpayers and practitioners
   9.    Close monitoring of tax eroding measures and investment incentives programs
  10.  Motivating the BIR workforce

The Strategy Map specifically mentioned enhanced enforcement in the following areas, among others:

   a.    Audit of conglomerates
   b.    Benchmarking and profiling
   c.    Transfer pricing
   d.    Big ticket transactions monitoring
   e.    Computer-assisted audit
   f.     Tax treaty transactions
   g.    Operation kandado 
   h.    Run after tax evaders
   i.      Monitoring of availment of incentives (OSD, PEZA, BOI, other incentive laws)

The implementation of these strategies requires taxpayers to pay more attention to their tax compliance to avoid future tax problems. To address this challenge, companies may be well-advised to conduct tax compliance reviews to identify practices that expose the company to tax assessments and penalties.  Transactions and structures and their tax implications must be carefully studied and planned.  Proper documents must be prepared and maintained.  BIR rulings may be secured to confirm the tax treatment for significant or recurring transactions.  Confirmatory ruling must be applied to be qualified to avail of preferential tax rates or exemptions under tax treaties.

The Strategy Map also lists programs that are designed to ease tax compliance and facilitate transactions with the BIR.
If you would need clarifications or require assistance, please get in touch with your P&A contact persons.

For more details, please see a copy of RMC 10-10.