TRABAHO Bill and SB 1906: Inputs by Mon Abrea
ADMINISTRATIVE CHANGES
THE administrative changes are crucial to the tax reform. Broadening the taxpayer base should be the main “offsetting measure” for the entire tax reform, and if the government wants to do this, they need to make sure that tax compliance is easier.
I agree with the modernization of the BIR through electronic filing, electronic sales reporting, and acceptance of electronic receipts. Provided, that the reform’s proposed “electronic channels” should encompass third-parties as well.
More electronic channels would mean that taxpayers would be able to choose which channel will be most convenient with them.
Manual Books of Accounts which are hardly accomplished or updated by taxpayers should be removed already. Micro or small taxpayers who may not be computer literate should be given simplified books (cash receipts and disbursements) to record their transactions. It should not be used against the taxpayers as most of them could not afford an accountant or bookkeeper to help them.
On the other hand, taxpayers who are using computers, spreadsheet or excel files should be acceptable accounting records for audit purposes. BIR should not impose additional accounting records including journal entries as they would not be able to inspect every taxpayer’s books of accounts.
We should allow third-party software provider whether web-based or mobile app to be used by taxpayers in filing and paying their taxes. This is less costly and would encourage higher voluntary compliance.
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