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Shift to gross tax system will not stop corruption – BIR officials


By Jun Ramirez 

Malacañang’s plan to shift income taxation from net to gross will not solve graft and corruption problem in the Bureau of Internal Revenue (BIR), well-meaning revenue officials said Tuesday.

Bureau of Internal Revenue (MANILA BULLETIN)

Bureau of Internal Revenue (MANILA BULLETIN)

Instead, they suggest the adoption of the Singapore no personal contact audit method, stressing that the proposed change will not adversely affect the under-the-table deals between dishonest revenue officers and unpatriotic taxpayers which have been causing the government to lose billions of pesos annually.

Under the scheme, the concerned revenue office sends via the postal system its deficiency tax findings to business taxpayers who in turn drop their response, including supporting documents, to sealed tax dustbins placed in strategic places all over the island state.

This way, the same sources said, there is no personal meeting between revenue officers and taxpayers, haggling to reduce the tax liabilities for a fee.

Under the present tax system, net income is arrived at by deducting all expenses incurred in running the business.

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