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New BIR Chief Aims To Boost Phillippines Tax Take

by Mary Swire, Tax-News.com, Hong Kong

21 October 2008

The new chief of the Bureau of Internal Revenue (BIR) in the Philippines, Sixto Esquivias, has been warned that he will be faced with a number of challenging tax problems to solve when his role commences next month.

Mr Esquivias, a former tax lawyer who worked for the BIR as deputy chief some years ago, was appointed to the new role after former chief Lilian Hefti's resignation earlier this month.

It is hoped that, due to his strong background in taxation, Mr Esquivias will be able to boost the government's tax collection efforts. The Philippines is notorious for poor tax compliance, and the BIR has been battling against tax evasion, corruption and inefficient tax administration for a number of years.

As a consequence of these ongoing problems, meeting revenue targets required by the government has always been troublesome for the BIR.

However, Mr Esquivias hopes that his previous period in the department will change this, as he draws upon his experience to implement a number of reforms.

Yet, despite Mr Esquivias's positive approach to solving the Bureau's problems, his new measures will not take effect immediately, meaning the BIR will yet again fall short of this year's revenue target of P845bn.

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