THE Bureau of Internal Revenue has received a clean sheet from the Commission on Audit regarding findings on uncollected or under-collected taxes assessed on imported automobiles estimated at P2.88 billion in 2021.
In the 2022 audit report on the BIR released on July 31, COA said the BIR has acted on all audit recommendations in relation to the uncollected excise taxes representing 133 “authority to release imported goods (ATRIGs)” totaling P412.03 million, under-collection of excise taxes involving 39 ATRIGs worth P467.126 million, and released imported automobiles covering 267 air waybills without approved ATRIGs with estimated dutiable value of P2.015 billion.
Auditors found the discrepancies during the audit of excise taxes on the importation of motor vehicles by cross-checking a report on the summary of ATRIGs processed and issued against the database of automobile importations.
The audit team assigned at the BIR worked with its counterpart team assigned at the Bureau of Customs to verify if the BOC collected the amounts based on BIR’s assessments.
They found that 133 ATRIGs issued by the BIR for total assessed taxes of P412.031 million had no corresponding collection entries in the BOC records.
At the same time, 39 ATRIGs with total assessments of P517.899 million from BIR’s end was found to have collections of only P50.773 million on BOC’s side or an uncollected balance of P467.126 million.
There were 15 ATRIGs having Batangas listed as the port of entry, with total assessment of P468.835 million but collections of only P20.54 million.
At the Manila International Container Port, auditors traced 15 more ATRIGs with P23.564 million in assessments and collections of only P20.716 million or a difference of P2.85 million.
Nine more ATRIGs listing Manila as port of entry had assessments amounting to P25.5 million but only P9.516 million in collections or a P15.984 million discrepancy.
The BIR’s Excise Large Taxpayers Fields Operations Division (ELTFOD) tracked down all the taxpayers in the ATRIGs and served notices of discrepancy while for those with records of under-collection, demand letters were sent to the taxpayers on record.
Regarding the released imported automobiles involving 267 air waybills with no record of ATRIGs and a total dutiable value of P2.015 billion, auditors said some importers presented proofs of payment on various dates while 11 presented certificates that they were entitled to non-payment of excise taxes.
The audit team was informed that the BIR is still waiting for replies on 65 other letters to taxpayers seeking clarification.
To prevent a recurrence of discrepancies in future transactions, the BIR has designated a monitoring team to keep track of ATRIGs and BOC linkages.
“The Large Taxpayers Service has already assigned ELTFOD to be in charge of monitoring and reconciling the processed and issued ATRIGs against collections made by the BOC,” COA said.
