SEVERAL foreign business groups asked the Senate to take action on the bill seeking to simplify the process of paying taxes in the country.
In a statement on Wednesday, the business organizations said they recently sent a letter to the Senate Ways and Means Committee requesting that it deliberate the proposed Ease of Paying Taxes Act. The House approved the bill on third and final reading on September 15; it was subsequently transmitted to the Senate a day after.
The measure wants to put in place a simplified process of tax filing returns to improve compliance with tax rules and regulations in the country. It also seeks to create a Taxpayer’s Advocate office, allowing the public to file for Tax Identification Number offsite, among others.
Citing the Joint Foreign Chambers, the business groups said that enforcing the legislation can help the country improve its ease of doing business, which can bode well for its ranking in the World Bank’s (WB) Doing Business report.
Irregularities
HOWEVER, the WB announced recently the discontinuation of the said survey after finding “data irregularities” due to potential manipulation in 2018 and 2020 surveys.
The latest report in 2020 placed the Philippines in 95th ranking, lagging behind its Asian neighbors including Indonesia, Vietnam, Thailand, Malaysia and Singapore.
“We are certain that ending being the only country to require an OR [official receipt] and not accept the invoice is a positive step. If other countries that are ranked higher than the Philippines do not require this extra paperwork, then it is common sense to remove the requirement as soon as possible,” they said.
The foreign chambers said the proposal received support from the government officials and private sector during the House hearing, even citing the previous endorsement by Finance Secretary Carlos Dominguez.
“During this unprecedented time of the Covid-19 pandemic, when circumstances for taxpayers—be they corporate or individual—are very difficult, government should be creative and innovative in collecting revenue for our fight against the virus, but at the same time government should facilitate compliance by taxpayers,” they added.
The statement was signed by the American Chamber of Commerce of the Philippines, Australian-New Zealand Commerce of the Philippines, Canadian Chamber of Commerce of the Philippines, European Chamber of Commerce of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines, Korean Chamber of Commerce of the Philippines and Philippine Association of Multinational Companies Regional Headquarters Inc.
Image courtesy of Rolly Barayang