The BIR achieved this by reforming the e-filing system and augmenting the throughput of its older e-filing solution called eFPS (e-filing and payment system) with the upgrade of eBIRForms and e-mailed returns. It also introduced a newer, more streamlined e-filing solution–eBIRForms Version 5–on June 8, 2015, which improved security and encryption, eliminated bandwidth issues, reduced the file size in the BIR server by up to 90%, introduced the verification steps of key taxpayer information, and included all 36 forms.
The eBIRForms Version 5 has already shown promising results. The upgrade of eBIRForms has resulted in an augmentation of 289,000 tax returns in the first month of implementation alone (starting June 8). In line with these encouraging indicators, the BIR has already started reducing costs allocated to printing paper tax forms this year. eBIRForms Version 5 was jointly developed by the BIR, Cai Sta, and experts from the USAID Facilitating Public Investment Project.
Finance Secretary Cesar V. Purisima lauded the positive results saying, “With e-filing, we turn towards modernization in approaching an ancient challenge: how to make tax compliance as efficient and painless as possible. There is much work to be done in improving the systems employed, but the direction our framework has tacked point to increased transparency, accountability, and government efficiency. I urge the BIR to continue working on reforms easing the compliance burden our taxpayers have to bear.”
E-filing is expected to further ease conditions during the April tax season, significantly reducing costs of compliance with tax laws and regulations, and indirectly improving the ease of doing business and overall competitiveness of the country. This eliminates the inconvenience of long queues and the time constraints of adhering to the operating hours of the BIR, as it allows taxpayers to enjoy the convenience of submitting their tax returns at their time of convenience.
E-filing improves transparency and accountability by ensuring timeliness and completeness of primary taxpayer information as well as related taxpayer databases. The system also leads to faster reconciliation, a reduced risk of non-compliance by banks and taxpayers alike, a decrease in costs of printing and processing tax returns, the decongestion of tax offices, and the ease in burden of return processing for Document Processing Centers of the BIR. It should likewise lead to better risk-management at the BIR, reduced frequency of audits for compliant taxpayers while offering better-targeted and timely taxpayer services.
E-filing is also expected to bring forth a reduction in the time it takes to receive tax refunds from the government, the provision of more comprehensive online taxpayer accounts, a simplified process of receiving tax clearances from the BIR, among others.
