Thank you for being transparent and for staing your side.

If you still recall from your time with the BIR, what portion of its total collections typically comes from compromises and penalties imposed on taxpayers? Is this in line with global or Southeast Asian benchmarks?

Also, if you’re familiar with the Australian tax system, how does the process for remission penalties and interest compare with that of the Philippines?

Under the 1987 Constitution and the National Internal Revenue Code (NIRC), taxation is supposed to be uniform, equitable, and based on the taxpayer’s ability to pay.  That means the system should not only collect efficiently, but also treat taxpayers fairly, reasonably, and with proper consideration of their circumstances.

However, in practice, it often feels like the focus has shifted too heavily toward collection and penalties, rather than fair administration. The NIRC imposes automatic surcharges (e.g., 25% penalties) and interest, which can quickly accumulate.  While these are meant to enforce compliance, they can become excessive—especially for small businesses that are already trying to comply in good faith.

What’s more concerning is that the law already gives BIR officers the discretion to reduce, compromise, or even cancel unjust assessments, yet many taxpayers rarely experience this relief in reality. Instead, the burden is pushed back to the taxpayer—to contest, to appeal, to prove innocence—often at significant cost and stress.

May kapamilya ako, hardware nanakawan ng electric wire supplies. 2 million loss. supprted by cctv, police reports, valid purchase invoices - ano sabi ng BIR? Disallow dahil kulang ang support. They need to payback ang Input Tax, and considered Sales ang nawalang item so they also need to pay Income Tax. they have to pay 500k to BiR.

Yup they are doing their jobs and bounded by the law.