RELATE THE FUNCTION OF BIR WITH THE BIR STATE POLICY

Bureau of Internal Revenue or BIR, an agency under the Department of Finance,

is responsible in the collection of taxes from taxpayers in accordance with the tax laws
implemented by the Philippine State. The bureau, according to the Section 2 of the
National Internal Revenue Code of 1997, is mandated by law to assess and collect all
national internal revenue taxes, fees and charges, and to enforce all forfeitures,
penalties and fines connected therewith, including the execution of judgements in all
cases decided in its favor by the Court of Tax Appeals and the ordinary courts. It is
expected to promote nation-building and the upliftment of the lives of the Filipino.
Furthermore, in order for the government to attain the desired position in the global
market, a several principles/platforms are declared in the BIR State Policy. This policy
declared that the State has (i) to promote sustainable economic growth through the
rationalization of the Philippine internal revenue tax system, including tax administration;
(ii) to provide, as much as possible, an equitable relief to a greater number of taxpayers
in order to improve levels of disposable income and increase economic activity; (iii) and
to create a robust environment for business to enable firms to compete better in the
regional as well as the global market, at the same time that the State ensures that
Government is able to provide for the needs of those under its jurisdiction and care.

The abovementioned function and policy of Bureau of Internal Revenue is 11

relative, evidently and explicitly. Promoting a sustainable economic growth, providing an 11
equitable relief to a greater number of taxpayers, and creating a robust environment for 14
business entities will be much easier to obtain if the duties and responsibilities of the 15
Bureau are done virtuously and professionally. To have a harmonized tax system, the 13
returns, statements, and other documents must be reported with great honesty. The 12
taxpayers' ability or inability to pay taxes should be monitored from time to time to know 16
on what bracket/classification they belong, also, to avoid excesses and inadequacies. 12
Moreover, enterprises in the country can compete globally through an effective 11
implementation of tax laws and system. In addition, if these taxes are fully utilized with a 16
sense of dignity, and did not go straight to the pockets of corruption, the government will 16
be able to provide for the needs of the Filipino people. 11

To put into a scenario, a company paid a hundred thousand pesos for the taxes 15
from its employees but actually collected two hundred thousand pesos. So, an excess of 14
a hundred thousand will go the pockets the proprietor. This instance should be properly 14
monitored by the Commissioner of the Bureau to avoid this unjust situation that is 14
prevalent on some industries. In some circumstances, officials and taxpayers are having 12
a hidden transaction concerning fees and charges. Strict surveillance and 10
implementation is needed to achieve State Policy. 7

www.bir.gov.ph
http://www.lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html