BIR, IMF to improve PHL tax compliance

The Bureau of Internal Revenue (BIR) is cooperating with the International Monetary Fund (IMF) to establish a modern and data-driven tax compliance system in the Philippines.

The BIR on Friday said it met with IMF experts last Sept. 4 to discuss the operational implementation of compliance risk management (CRM) and regional engagements on CRM activities across selected BIR field offices.

They identified recurring compliance risks and common high-risk sectors, including construction, retail, tourism, and e-commerce, highlighting the need for a strong, centrally managed CRM framework to identify and address compliance risks.

“Compliance risk management helps us understand where the most significant compliance risks are so we can respond more precisely,” BIR Commissioner Charlito Martin Mendoza said.

“With better data and risk assessment, we can focus our resources and interventions where they are needed most, while making compliance easier across the taxpayer base,” he added.

The official thanked the IMF and its technical experts for their continued support to the Bureau.

“The goal is to strengthen our own capability to identify and analyze compliance risks, determine the appropriate response, and continuously improve how we manage taxpayer compliance,” he said.

The BIR said its engagement with the IMF supports its shift toward a more risk-based and data-driven approach to tax administration. (PNA)