DOF eyes launching Overseas Filipino Bank, E-invoicing project in Q3
Robie de Guzman • May 22, 2020 • 596
MANILA, Philippines – Even with the ongoing public health crisis, the Department of Finance (DOF) said it is looking to roll out this year two digital-based programs that are aimed at “improving tax compliance” and “expanding financial inclusion,” especially among Filipino migrant workers.
Finance Secretary Carlos Dominguez III said one of these initiatives – the Electronic Receipt and Invoicing and Electronic Sales Reporting System (E-invoicing) – will possibly be launched by the third quarter of the year to provide better and faster services to taxpayers.
“The biggest (digitalization) program we’re working on now is e-invoicing. Once we get that e-invoicing program set up, that will mean a big step in e-governance already,” Dominguez said during a recent online hearing of the economic stimulus cluster of the Defeat COVID-19 Committee of the House of Representatives.
“We have been working on that for the last year or so, and we should come to a conclusion, a good program by the middle of, or maybe the 3rd quarter of this year,” he added.
His statement was in response to a recommendation by Deputy Speaker Luis Raymund Villafuerte during the online hearing for the government to strengthen and expand its digital-based programs for frontline services.
The e-invoicing program is part of the efforts of the Bureau of Internal Revenue (BIR) to digitalize its tax administration and collection system.
Dominguez said the system will complement the administration’s Comprehensive Tax Reform Program (CTRP) to make the tax system simpler, fairer and more efficient.
It will also translate into more convenient, reliable and transparent services for taxpayers, and set the stage for world-class tax administration in the country.
Its pilot stage was funded by the grant extended by the Republic of Korea through the
Korea International Cooperation Agency (KOICA).
Dominguez also revealed during the online hearing that the Land Bank of the Philippines has made good on its commitment to the DOF to have the country’s first ever digital-only, branchless bank up and running by the end of June this year.
The Overseas Filipino (OF) Bank, which will primarily benefit the country’s migrant workers, will utilize digital technology and smartphone apps to provide banking and other financial services, the DOF chief said.
“We set up this OF Bank a couple of years ago. We’ve had problems with the technology but I think with Cecile’s leadership, we are almost ready to launch,” Dominguez said, referring to LANDBANK president-CEO Cecilia Borromeo.
Borromeo earlier reported to Dominguez that the Bangko Sentral ng Pilipinas already granted last January 30 a “No Objection” Clearance to the OFBank on its use and implementation of a Digital Onboarding System (DOBS) with Artificial Intelligence (AI) facilitating an electronic Know-Your-Customer (KYC) process.
In September 2017, President Duterte signed Executive Order No. 44 authorizing LANDBANK to acquire the Philippine Postal Savings Bank (Postbank) so it could be converted into the OFBank. The OFBank is classified as a savings bank of LANDBANK.
Borromeo said that overseas Filipinos with Postbank accounts who migrated to OFBank were issued EMV-enabled VISA Debit Cards they could use for automatic teller machine (ATM) withdrawals, fund transfers, bills payments and online purchases, among others.
“Through the OFBank, overseas Filipinos would be able to invest in their own country that they have helped transform into one of the fastest-growing economies in the region,” Dominguez said.
A joint initiative of the DOF and the LANDBANK, the OFBank is the fulfillment of a 2016 presidential campaign promise of then-Davao City Mayor Rodrigo Duterte to overseas Filipino workers (OFWs) to put up their own bank when he becomes President.
MANILA, Philippines – President Rodrigo Duterte has authorized the Department of Finance (DOF) to enter into talks with the United States Trade and Development Agency (USTDA) for a possible $809,450 or about P39-million grant to assist the Bureau of Internal Revenue (BIR) in its digital transformation program.
In a statement issued on Wednesday, the DOF said the president has approved its request for a Special Authority designating and authorizing its senior officials “to negotiate and/or facilitate, in accordance with law, for and on behalf of the Government of the Republic of the Philippines (GPH), with the authorized representatives of the USTDA.”
The Special Authority covers the negotiations for an agreement on the grant of $809,450.00 (approximately P38,850,873.20) by the USTDA for the BIR’s Information and Communications Technology (ICT) Modernization Strategy and Data Center Technical Assistance Project.
The DOF said that Duterte also designated and authorized Finance Secretary Carlos Dominguez III or BIR Commissioner Caesar Dulay “to conclude, sign, execute and deliver the said Grant Agreement.”
The BIR project aims to modernize the bureau’s infrastructure and operational environment, it added.
“The project funded by the USTDA grant will ensure an in-depth technical assessment of the BIR’s current ICT environment, the development of an Enterprise Architecture roadmap/framework, and an assessment of the organizational framework of the BIR’s Information System Group (ISG) including recommended restructuring and training programs,” the DOF said.
Dominguez has cited the BIR’s digital transformation efforts as among the factors that led to a dramatic improvement of its services to taxpayers and its robust collection performance ahead of the COVID-19 pandemic-induced crisis.
He said the digitally enhanced administrative reforms being undertaken by the BIR are now beginning to pay off by way of the significant improvement in the country’s tax effort from 13 percent of gross domestic product (GDP) in 2015 to 14.5 percent of GDP in 2019.
The digital switch has also led to the more convenient and efficient electronic filing of tax payments, especially during this coronavirus pandemic, he added.
Starting February 14 last year, the BIR allowed the use of the PayMaya mobile application as an additional electronic payment channel for tax payments.
On top of PayMaya, these other e-payment tools are GCash, LandBank Linkbiz, DBP PayTax, Union Bank Online and PESONet.
The BIR has also improved the tax forms deployed in the e-BIR Forms System to make the filing of tax returns more accessible and convenient to taxpayers.
It began the pilot implementation in April 21 last year of its web-based Internal Revenue Integrated System (IRIS) that will be the central tool and repository to process taxpayers’ information, the DOF said.
The IRIS is targeted to be available nationwide by the end of 2021.
The Finance department added that an Electronic Audited Financial System (eAFS) was also launched last June 1 to allow business taxpayers to electronically submit their financial statements to the BIR.
The BIR also launched on October 19 its eAppointment Facility which aims to enable taxpayers to continue consulting revenue officials on their tax-related concerns even with the mobility restrictions imposed to curb the spread of COVID-19.
In November 2020, the BIR also opened its web-based Procurement, Payment, Inventory and Monitoring System (PPIMS) and its Online Application for Tax Clearance for Bidding Purposes (eTCBP), according to the DOF.
MANILA, Philippines – The Bureau of Customs (BOC) has confiscated an estimated P9.746 billion-worth of smuggled goods in 2020, the Department of Finance (DOF) said on Tuesday.
Citing a report submitted by Customs Commissioner Rey Leonardo Guerrero to Finance Secretary Carlos Dominguez III, the DOF said the Customs bureau seized smuggled cigarettes and other tobacco products in 150 out of 792 operations it conducted in the country’s ports last year.
“For the anti-smuggling effort of the BOC, the consolidated estimated value of seized shipments last year is P9.746 billion, of which P5.217 billion are from seizures of cigarettes and tobacco, P1.85 billion are from drugs seizure and P1.02 billion from counterfeit items,” Guerrero told Dominguez during a recent Executive Committee meeting.
The confiscated tobacco products made up 53.5 percent of the total amount of goods seized by the BOC during this period, Guerrero said.
Aside from tobacco products and illegal drugs, the BOC also seized P32.59 million-worth of various types of currencies from January to December 2020.
General merchandise worth P403.89 million, vehicles and automobile accessories valued at P354.53 million, and agricultural products amounting to about P207.7 million were also apprehended by the BOC, Guerrero said.
The BOC also seized personal protective equipment (PPEs), medical supplies and cosmetics worth P195.57 million; jewelry and other products, P69 million; foodstuff, P212 million; used clothing, P130.59 million; electronics goods, P31.07 million; steel products, P4.76 million; alcoholic beverages, P2.43 million; chemicals, P5 million; and firearms, P300,000.
From Jan. 1 to Dec. 28 last year, Guerrero said the BOC filed 74 criminal complaints before the Department of Justice (DOJ) against 268 respondents suspected of smuggling, and another 52 administrative cases before the Professional Regulation Commission (PRC).
As of Dec. 4, 2020, the BOC also ordered the closure of 20 customs-bonded warehouses (CBWs) and 40 members of customs common bonded warehouses (CCBWs) for various violations, Guerrero said.
“In 2020, the BOC already completed the inspection and investigation of a total of 150 Customs Bonded Warehouses and 247 Members of CCBWs,” Guerrero said.
Dominguez previously ordered the BOC and Bureau of Internal Revenue to intensify their respective operations against smugglers and tax evaders despite the mobility restrictions triggered by the coronavirus pandemic.
MANILA, Philippines — The Philippines and India are exploring ways of enhancing their economic ties, particularly in the areas of financial and digital technologies and infrastructure development, the Department of Finance (DOF) said.
In a statement, the department said Finance Secretary Carlos Dominguez III and India Ambassador to the Philippines Shambhu Kumaran met recently to discuss both countries’ interests in strengthening their cooperation in the fields of banking and finance.
The DOF said that during his virtual courtesy call, Kumaran offered India’s expertise in setting up the country’s broadband network as well as the national identification system.
Dominguez welcomed the ambassador’s offer of assistance and invited Indian companies to participate in the upcoming rollout of a shared cyber-defense plan for Philippine state-run banks and their subsidiaries, the department added.
The finance chief likewise expressed his appreciation for India’s interest in helping the government implement its digital transformation programs that aim to expand financial inclusion among Filipinos, upgrade the delivery of frontline government services, and further curb corruption among government officials.
Kumaran said Indian companies are interested in taking part in the Duterte administration’s “Build, Build, Build” program but are “in need of more information on the various opportunities available to them under the President’s centerpiece infrastructure modernization plan.”
“To assist prospective investors on this concern, Secretary Dominguez and Ambassador Kumaran agreed to help organize a webinar or online workshop where the Philippines can showcase the various opportunities open to India’s companies on infrastructure development, as well as other possible areas of cooperation between Filipino and Indian firms,” the DOF said.
It was also mentioned during the meeting that an Indian company – GMR Infrastructure Limited – is already taking part in the “Build, Build, Build” program and has performed “impressively” in operating the Mactan Cebu International Airport (MCIA) and expanding the Clark International Airport (CIA).
The Philippines and India rekindled their bilateral ties with the official visits of President Duterte to India in 2017 and 2018, which were followed by a state visit of Indian President Ram Nath Kovind to the Philippines in October 2019, the DOF said.
India and the Philippines established their diplomatic relations on November 16, 1949.
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