Digitalization of BIR on the Taxpayer’s Payments of the Philippines Towards Meeting Collection Targets Framework

Abstract

This study emphasizes the importance of digitalizing the Bureau of Internal Revenue (BIR) in the Philippines to enhance revenue collection and compliance among taxpayers. The research explores the significance of Bureau of Internal Revenue (BIR) Digitalization in reinforcing revenue collections necessary for government programs. It delves into information and accounting solutions for accounts receivable management, considering Russian Accounting Standards (RAP), International Financial Reporting Standards (IFRS), and generally accepted accounting principles (GAAP). The study proposes optimizing enterprise receivables management through Robotic Process Automation (RPA) technology, focusing on customer credit management and risk prediction. The findings highlight the significant impact of digitalization in improving BIR's account receivable collections, enhancing efficiency, reducing human errors, ensuring safer data storage in the cloud, lowering operational costs, enabling data analysis, and improving accounts receivables turnover. The study advocates for a comprehensive digital approach to invoicing, payment processing, and customer interactions, emphasizing the benefits of efficiency, predictability, transparency, improved security, and competitive advantage. The research recommends BIR to adopt digital payment options, offering convenience to customers, reducing operating expenses, increasing efficiency, ensuring security, and gaining a competitive edge in the market. Digital transformation is portrayed as essential for BIR's future success in revenue collection and taxpayer satisfaction.