MANILA - Four conglomerates are being investigated by the Bureau of Internal Revenue (BIR), which wants to know if they paid the right taxes.

The probe, said BIR Commissioner Sixto S. Esquivias IV, is part of renewed efforts to run after tax cheats, particularly those who are taking advantage of transfer pricing to lower their dues.

"So far, four groups," he told reporters yesterday when asked how many firms were under investigation. He declined to be more specific.

"We want to know about inter-related [company] transactions like the transfer pricing. We want to check if the selling price of a company with its related firm is the same when they sell to others. They may be avoiding taxes."

The BIR, said Mr. Esquivias, wants to improve voluntary compliance as the bureau does not have enough manpower.

"The BIR still lacks personnel. How many audits can we conduct using these people and there are thousands and thousands of taxpayers? We need to strategize our enforcement activities to promote voluntary compliance. We have to send a message," he said.

The BIR chief said enforcement programs would help compensate for foregone revenues arising from laws such as last year’s income tax relief measure and a lower corporate income tax.

Mr. Esquivias last month issued Revenue Memorandum Order 23-2009, which targets corporates employing various schemes to reduce the amount of their tax dues. These include transfer pricing or the sale of goods, services and assets between related firms.

Other schemes the BIR wants to investigate are the use of tax exempt entities, inter-related company loans and advances, and cost-sharing.

Violators will be charged under the bureau’s Run After Tax Evaders program.

In another development, the BIR yesterday honored the country’s top taxpayers as agency marked its 105th anniversary.

Awarded were:

* San Miguel Brewery Inc., Philip Morris Phils. Manufacturing Inc., and Philippine Foremost Milling Corp. (companies category);
* TV host and singer Wilfredo "Willie" B. Revillame (individual taxpayers);
* Bangko Sentral ng Pilipinas (government-owned and controlled corporations);
* Bureau of the Treasury; and
* the Quezon City government (local government units).

The BIR missed its P810-billion target last year, collecting only P778 billion. It earned P375.6 billion in the first half, short of its P388.4-billion goal.

The BIR, which accounts for about three fourths of the government’s tax revenues, is tasked to collect P798.5 billion this year.