PCCI Calls for Tax Collection reforms.(Business)

Article excerpt

Reforms in the countrys tax collection system to widen tax base and simplification of the complicated compliance requirements because these make costly to be a good taxpayer have been urged by the countrys top corporations, a survey conducted by the Philippine Chamber of Commerce and Industry (PCCI) showed.

PCCI Executive Director Florecita Flores said there were 58 survey respondents out of the 600 firms belonging to the country's top 1,000 corporations.

Forty-nine percent of the respondents said that the country's current tax system, in terms of its various compliance requirements, was difficult and complicated to comply with.

Forty percent of the respondents on the other hand, replied that the additional costs to business in being a good taxpayer is "unreasonable and costly to bear".

Among the activities they found costly were: Education (costs of knowing one's tax obligations, compliance requirements and penalties, including the costs of being updated on these matters), compliance manpower, manufacturing external consultants to ensure proper tax compliance, opportunity loss from tax payments or the interest costs of borrowing to make tax payments and tax audit, examination and inspection. …