Redefining tax enforcement: BIR goes digital with warrants of garnishment

The Bureau of Internal Revenue (BIR) is embracing digitalization by introducing electronic emails and electronic signatures as additional methods for serving warrants of garnishment.

BIR Commissioner Romeo Lumagui Jr. issued Revenue Regulation 11-2023, which mandates that head offices of banks and their branches provide their official email addresses to the relevant BIR office where they are registered.

Under this regulation, once the BIR dispatches the email containing the warrant of garnishment, it is considered served, and the bank and branch in question are required to take appropriate action. The collecting BIR unit may also request an authorized acknowledgment receipt from the designated official of the involved bank.

Traditionally, warrants of garnishment against deposits have been physically issued and served. However, Lumagui emphasized that BIR personnel have encountered challenges in implementing this process.

According to Lumagui, “the service, through electronic mail (e-mail) and the use of electronic signature, of the WGs [warrants of garnishment] is necessary in order to exhaust the benefits of this modern-day technology. Such innovation shall result in a speedy, efficient, and more effective way of determining and collecting the assets of delinquent taxpayers.”

Revenue Regulation No. 11-2023 authorizes regional directors, assistant commissioners for collection service and large taxpayers service, and chiefs of large taxpayers district offices to issue and electronically sign warrants of garnishment against the deposits of delinquent taxpayers. Only specified BIR divisions are authorized to transmit and serve these signed warrants to bank head offices and branches within their respective areas. The warrant must also specify the taxpayer’s tax liability for which the warrant is issued.

From January to August of the current year, the BIR has collected a total of P1.7 trillion, marking a 9.4% increase compared to the same period in the previous year.

However, the BIR’s collection for August alone amounted to P213.5 billion, nearly 7% lower than the P228.9 billion collected in August 2022.

Subscribe to

Stay in the know with Bilyonaryo’s unparalleled coverage of business news and global industries!

Elevate your understanding of the Philippine business landscape and gain insights into worldwide markets by subscribing to our dedicated channels. Receive breaking news, in-depth analyses, and exclusive interviews with industry leaders directly on Viber, WhatsApp, and Facebook. Stay informed and empowered with our Email Newsletter, delivering curated content right to your inbox.

Don’t miss out on crucial updates and trends shaping economies and businesses both locally and internationally.

Join Bilyonaryo’s community today by clicking the button below to subscribe and stay ahead in the dynamic world of business.

Share this Bilyonaryo story