'We do data integration for the BIR -- all data declarations, third-party information, even utilities data; they basically run their analytics on our platform. Once the data is integrated, that's where the BI task force comes in,' said Sawfin Saw Buan, industry sales manager at SAS Institute (Philippines) Inc., the provider of business intelligence software to the BIR.

Saw Buan shared that in a VAT relief project for the BIR in 2003, they were able to help the bureau uncover almost P80 billion (US$1.5 billion) of under-declarations in value added tax (VAT) from businesses, out of which the BIR was able to collect P7 billion to P8 billion. Through the BI software, what the bureau has been trying to do for several years was easily accomplished in three months, the SAS official added.

Curiba said the BI system was put in place to detect patterns of tax declarations and/or payments suggestive of tax fraud or evasion practices; to develop benchmarks for prioritization of industries on which audit activities should be focused; and to identify areas for improvement in taxpayer administration and better revenue collection.