The BIR is strengthening its tax collection system and they partnered with the Insurance Companies and LTO.
“For Motor Car insurance requirement with CTPL cover, please be informed that the Assured’s Tax Identification Number is necessary to compl
ete the authentication transaction under the COCAF system per BIR Requirement which will take effect on May 10, 2010. Authentication cannot be processed unless TIN is encoded being a mandatory field.” (source:PGAI Ortigas)
This is actually a good sign for the legitimate insurance companies, agencies like us. Through this system, a lot of things can be achieved. These are:
1. Authenticity of the TPL or COC. Because there are lots of TPL insurance that are fake!!! BEware!
2. Improved TAX collection.
3. Legitimacy of Car Ownership. These will be exhausting for the Used Car Sales Industry. If they bought a 2nd hand car and opted not to change ownership, how can they renew their registration if they don’t know the TIN of the existing registered owner. They will now be forced to change ownership right away. If this happens, automotive related crimes will surely go down. It
will be easier for the government to trace the kidnappers and carnappers if the system is successful.
Well, we hope the incoming government will carpe diem! Good luck!