The Bureau of Internal Revenue (BIR) is developing a new electronic no-contact audit procedure to maximize tax payment compliance and reduce the incidence of corruption.
BIR Commissioner Caesar Dulay said the Internal Revenue Integrated System (IRIS) will replace the existing but already obsolete Integrated Tax System (ITS) which was developed 23 years ago.
Basically, the IRIS contains all information about taxpayers from registration to filing and payment of taxes.
It can monitor compliance, identifying those who pay correct and incorrect taxes as well as those entitled to receive tax credit or refund for excess payments.
Some features of the web-based system have already been pilot-tested with selected offices like the bureau’s large taxpayers service which audit big companies and found the results very encouraging.
Dulay said IRIS was initiated to increase tax collection and minimize the incidence of under-the-table deal between taxpayers and tax examiners as they are no longer required to meet to discuss the formers’ tax liabilities.
The BIR chief said that by pushing the right electronic buttons a revenue officer will know the l honest and dishonest taxpayers.
Insiders said the no-contact audit policy is not a new concept as it is being practiced in Singapore and many other developed countries wherein the computers calculate tax returns for discrepancies.
IRIS contains eight application modules including collection-remittance-reconciliation, returns filing and processing, case management system, audit selection system, and audit and non-audit taxpayers compliance system. (Jun Ramirez)