How the Bureau of Internal Revenue Promotes Efficient Collection of Taxes

Source: http://knowyourtaxes.ph/

Last Aug. 1st, the Bureau of Internal Revenue (BIR) which is responsible of collecting taxes to every employed Filipino celebrated their 110th founding anniversary. I tell you I have nothing against them but it is not easy to let go of a part of our hard - earned money. When I used to work in the corporate world for 8 years, I never cared about how much is deducted to me because I have a fixed salary of work. So long as I report 8 hours for 5 days in a week, I am good. 

When I became a freelance entrepreneur who only get paid after a project has been done or a sale has been closed, I feel I need to take a look about how taxation works in the Philippines. I became conscious of where my money is spent every from a single peso because I have bills and rents to pay here in Manila. I also met a lot of business owners and startup founders who are struggling to put up a legally - compliant business from registering the name, to filing and paying the taxes.

I did a basic online research and in fairness to everyone, I found 3 very promising public awareness campaigns needed for a fair process of collecting taxes. I think what we need is the strong implementation of these to the public. Let me tell you one by one:

1. Register, File and Pay System

There's so much visibility of the RFP program. I see the ads of this everywhere. I even have a bit of lss (last song syndrome) of its music jingle because it is always played in the flat screen located in the lobby of the condo where I live. Whenever I pass to reach the 24th floor, I always hear this. 

The step by step procedures in business registration and the list of documents necessary to register a business can be found here.

To know more about Register, File and Pay System, you may click here.

2. Premyo sa Resibo contest

This is to encourage customers/business owners to demand sales invoices and official receipts. This was launched as early as 1999 and still ongoing.

To know more about the mechanics of Premyo sa Resibo, you may click here.

3.  Electronic Filing and Payment System (eFPS)

The eFPS is an innovative way of paying taxes by doing it online.  This is very much a good news to freelancers who are now able to avoid the hassles of voluntarily paying taxes on time.

To know more about the details of eFPS, you may click here.

We have to keep in mind that unable to pay due tax in the Philippines is illegal, meaning the business may be closed and the owner will be asked to pay a fine. If you don't know of the process,  this is never a good excuse to be considered. As early as 2008, BIR has been conducting programs that conduct nationwide closure of erring business establishments like the Oplan Kandado.

The official BIR website has also an eComplaint facility where complaints for erring BIR employees and taxpayers can be reported.

The Aquino administration has been very strong  in its advocacy to file tax evasion cases against individuals and business establishments. There are a lot of new payment gateways added as well to provide convenience to everyone paying the tax but has little time to do it.

To know more about BIR Programs and Services, visit www.bir.gov.ph. To get daily tax updates, visit the BIR Fan Pages http://ow.ly/zUjMm.