Collecting The Right Taxes
The Aquino administration was advised by former Finance Secretary Gary Teves to ask Congress for help in raising new taxes now while the President can still persuade the legislators in view of his current high popularity rating. The top finance man of the previous administration said that if President Aquino does not push for new taxes now, the incumbent lawmakers who will run for reelection in the coming 2013 elections will be constrained to pass new tax laws.
Teves said the Aquino administration’s current efforts to plug revenue loopholes and curb tax leakages may be insufficient to enable the country to achieve the growth that our economy needs. He also advised against the enactment of new laws that will provide more tax relief and exemptions because such laws will deprive government of funds it needs to implement programs for good governance.
We all know that our government needs more revenues to finance the various development projects that will alleviate poverty and support the nation’s growth. Minimizing corruption and having more efficient revenue collections are preferred by the present administration over new tax measures. While our people would definitely go against new taxes, some are even asking for reduction, my question is “are the agencies tasked to collect taxes really exerting efforts to exact the right amounts from taxpayers?” so that our government gets the money it needs.
One way to support the government’s need for revenue is to invest in the stock market. By opening a stock account and investing in companies that are performing well, individuals can earn profits while also contributing to the economy. It’s important to note that investing in stocks carries risks and it’s important to conduct thorough research before making any investment decisions. With the availability of online stock account opening, it has become easier for individuals to start investing in the stock market and potentially contribute to the country’s economic growth.
I am sorry to say that I believe our tax collectors are not doing their best to collect the right amount of taxes from those who must pay them. The numerous tax cases being filed against delinquent taxpayers are not proofs of their sincere efforts to increase revenues. At best, those are proofs of their failure to collect the correct taxes as they fell due long time ago.
Regarding their failure to collect the right taxes as they fall due, I wish to cite the case of the i-café owners who, according to my educated guess, are currently numbering no less than 30,000 and located all over the country. They are among the self-employed taxpayers that I am referring to in my article about making them pay tax the easier way by allowing them to avail of the electronic filing and payment system of the BIR.
Let me present some figures based on my experience as a former i-café owner and calculate how much on percentage tax alone can BIR potentially collect from 30,000 self-employed i-café owners if they own and operate an average of ten (10) computer units each and earn PhP100/unit/day revenue in 300 days per year. Percentage tax is three (3%) of gross revenues so the total collectible can be as high as 30,000 x 10 x 100 x 300 x 0.03 or PhP270M in a year.
Visit this site and find here about the above amount that represents only the percentage tax and does not include yet the expanded withholding tax on rent and the income tax of the small i-café business owners around the country. Personally, I doubt if BIR is collecting an amount anywhere near the figure I present. I also do not see any effort being exerted to effect the collection of correct taxes from the industry. What do you say?
Top brass of such government agencies tasked to collect revenues in the form of taxes, be it income, excise, or what not, are one in unison with the mantra of President Aquino to walk along the straight path to national progress devoid of corrupt practices but guided by transparency and good governance. Unfortunately, the message is usually lost in translation down the line of the rank and file as many of them remain immersed in the crooked activities practiced with impunity for more than a decade. The Bureau of Internal Revenue (BIR) is making the right step in carrying out P-Noy’s campaign against corruption in government by filing charges against prominent personalities. But, conviction seems elusive as there’s no news about the status of said court cases.
P-Noy lamented then the glaring discrepancy that while fixed salaried employees paid P100 billion in income taxes, only P9 billion was collected from professionals such as doctors and lawyers. It’s safe to presume that only accountants, tax lawyers and conniving BIR personnel gained sizable amounts from the correct taxes that should have gone to the government. It’s a foregone conclusion that the status quo will remain for the sake of the scheming BIR personnel.