It is the hoped that the newly signed Memorandum of Understanding will assist in income tax monitoring and collection. Commissioner of the Income Tax Department, Ann Castillo stated that they do not have a clear picture of the figures when it comes to tax evasion.
“Presently there is not a ballpark figure but in the eventuality we have to be prepared for it hence the signing of this MOU. The information collected from ourselves and the FIU will assist us in combating that tax evasion if and when it arises.”
Commissioner Castillo said they are implementing a system to accurately track tax evasion.
“We have recently set up an ITA system , we have embarked on you could call it a re registration drive but trying to get all the taxpayers and the potential tax payers on our system and through that exercise we have found out that we have a small percentage so far because the project has not yet been completed who have not registered with us and so we are getting those persons who are potential tax payers to be our taxpayers to boost the revenue, that is part of the project that we have embarked on.”
Director of the FIU, Kent Clare stated that the new MOU will also help in the fight against crime by tracking down illegal income. Commissioner Castillo tells us how they track illegal income circulating markets such the drug trade and prostitution.
“If you are talking about the selling of drugs, for us everything’s income whether it is the illegal selling of drugs, if there is a trade done as prostitution that is taxable as well so for us everything is income and so we that is the information we need in order to assist those persons.”
Reporter: How do you go about tracking that information.
“The ones for the illegal income we have an agreement with the police department that whenever they find those persons they bring them into us and we would assess those persons as pursuant to our business act which is 50% of what you are fined with.”