BIR reinforces commitment to taxpayer support

BIR officers are providing clear explanations and step-by-step guidance to help taxpayers navigate the system. The TCVD emphasizes education and support, fostering a collaborative approach to fiscal responsibility.

A friendlier, more sustainable approach to tax compliance is gaining traction nationwide. Instead of relying on punitive measures, a national program emphasizes education and support, empowering businesses to understand and meet their tax responsibilities.

This initiative recognizes that genuine compliance stems from knowledge and understanding, not fear of penalties.

The Bureau of Internal Revenue (BIR), under Commissioner Romeo D. Lumagui, Jr., has launched a nationwide initiative, the Friendly Tax Compliance Verification Drive (TCVD). This program, coinciding with Tax Awareness Month, signified a shift toward a more supportive and collaborative approach, guiding businesses toward proper tax practices rather than immediately resorting to penalties.

This proactive measure, from Feb. 10 to 14, underscored the BIR's dedication to building a robust culture of compliance through understanding, assistance, and open communication. It also signalled moving away from a purely enforcement-focused model and toward a partnership with taxpayers to foster fiscal responsibility.

Lumagui has repeatedly emphasized the TCVD's educational focus. "The BIR conducted a tax education campaign, through a nationwide TCVD. The purpose of this TCVD is solely to educate businesses on their tax obligations. No penalties will be imposed," he stated unequivocally.

This commitment to education is not merely a slogan; it is a cornerstone of the BIR's broader strategy to improve tax collection rates and foster a more cooperative and mutually respectful relationship with taxpayers.

The agency recognized that sustainable compliance stems from understanding and empowerment, not just the threat of punishment.

Reaching businesses nationwide

The sheer scale of the TCVD is impressive, highlighting the BIR's commitment to reaching every corner of the business community.

On its first day alone, BIR officers visited over 24,000 establishments, from bustling urban centers to remote rural communities, as part of the agency's determination to engage with businesses of all sizes and types, from small family-owned shops to large corporations.

The focus is on identifying common compliance issues at the grassroots level and providing practical, tailored solutions on the spot.

The most frequent issues encountered by BIR officers during these visits offer a valuable snapshot of the challenges faced by businesses in navigating the tax system. These included businesses operating without official registration; failing to maintain their books of accounts at their place of business; and neglecting to display their certificate of registration.

The transition to the new sales or service invoice system under the Ease of Paying Taxes (EOPT) Act also presented a hurdle for many businesses, with many yet to convert their official receipts.

The TCVD targeted a diverse range of businesses, but retail stores, restaurants, healthcare providers, automotive shops, and construction supply stores topped the list of establishments visited.

These sectors represent a substantial portion of the business landscape, making them crucial to the BIR's efforts to improve overall tax compliance. By focusing on these key industries, the BIR hopes to create a ripple effect, encouraging best practices and setting a positive example for the entire business community.

New approach to compliance

The approach taken by BIR officers during these visits is particularly noteworthy. Instead of adopting a punitive or accusatory stance, they prioritize clear explanations, patient guidance, and open communication.

Officers explained the identified issues in simple, understandable language, avoiding complex jargon. They provided step-by-step instructions on how to rectify the deficiencies and ensure future compliance. Taxpayers were actively encouraged to ask questions, seek clarification, and voice their concerns, fostering a sense of dialogue and mutual understanding.

"We are here to educate our taxpayers, not to penalize them. Education leads to compliance. Improved services lead to compliance," Lumagui affirmed.

This emphasis on dialogue, support, and accessibility distinguishes the TCVD from traditional enforcement methods and demonstrates the BIR's genuine commitment to building trust and rapport with taxpayers.

The TCVD is a key component of the BIR's broader 2025 National Tax Campaign, which officially kicked off on Feb. 4 at the Philippine International Convention Center (PICC) in Pasay City.

Under the theme "Buwis na Tapat, Tagumpay Nating Lahat" (Honest Taxes, Everyone's Success), the campaign underscored the vital role of tax contributions in national development.

The launch event, attended by high-ranking government officials, industry leaders, and key stakeholders, showcased the BIR's achievements in digital transformation, including the Online Registration and Update System (ORUS) and the Electronic One-Time Transaction (eONETT) System.

These advancements have significantly streamlined tax-related processes. The campaign also unveiled a new tax campaign jingle and music video.

Building culture of compliance

The TCVD is not a one-off initiative; it reflects a long-term vision and a fundamental shift in the BIR's approach.

The agency aims to cultivate a sustainable culture of voluntary compliance by fostering mutual understanding, open communication, and genuine cooperation. By providing ongoing education, readily accessible support, and clear guidance, the BIR empowers taxpayers to confidently navigate the tax system.

This proactive and collaborative approach is essential for ensuring that businesses not only understand their tax responsibilities but also appreciate their crucial role in the nation's progress.

The Friendly TCVD represented a major step toward a future where tax compliance is driven by knowledge, collaboration, and a shared sense of responsibility, rather than fear of penalties. It signified the BIR's commitment to working hand-in-hand with taxpayers to build a stronger, more equitable, and more prosperous Philippines.