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Philippines: Banks Best Taxpayers, Utilities Worst – IMF |
| Source: |
mb.com.ph |
| Source Date: |
Tuesday, September 20, 2011 |
| Focus: |
Electronic and Mobile Government, Citizen Engagement, Internet Governance
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| Country: |
Philippines |
| Created: |
Sep 27, 2011 |
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MANILA, Philippines — Banks and insurance companies are the most honest taxpayers while electric and local water cooperatives are the worst, according to a study made by the International Monetary Fund based on Bureau of Internal Revenue data.
The IMF assessment rated tax compliance performance of 13 major industries.
Revenue officials, however, said the IMF analysis was just an initial observation and needs further verification.
“The report was a wake-up call for us to conduct in-depth probe,” one revenue official said.
An IMF paper presented at a recent operational planning session presided by BIR Commissioner Kim S. Jacinto-Henares showed that banks and other financial institutions received almost a hundred-percent tax compliance rating as far as income and business tax payments are concerned.
The study also showed that only three percent of financial institutions were remiss in paying taxes while electric and local water cooperatives got a score of negative 18 percent.
It further noted that many electric and water companies listed their businesses as cooperatives even if they are not qualified to take advantage of tax exemptions privileges granted to cooperatives.
BIR insiders said financial institutions are more truthful in their corporate income tax and the five percent gross tax receipts declarations because they are closely monitored by the Bangko Sentral ng Pilipinas and the Insurance Commission.
The mining industry also got a poor score as 90 percent of mining firms do not pay correct value-added tax (VAT), according to the study.
VAT is the second major source of funds of the BIR after income tax, comprising 21 percent of the annual collection, or roughly P153 billion of last year’s total take.
Also in the list of worst taxpayers as far as VAT is concerned are the construction industry with 87 percent non-compliance rate; agriculture, 86 percent; transportation, 82 percent, private education and healthcare, 81 percent; personal services such as barbers and hairdressers, 73 percent; real estate, 65 percent; trade, including wholesale and retail trading, 59 percent; communications, 47 percent; hotels and restaurants, 42 percent, and manufacturing, 20 percent.
Revenue officials said companies not paying correct taxes will be investigated as part of an over-all campaign to scour all sources of revenues.
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Philippines: Banks Best Taxpayers, Utilities Worst – IMF Banks and insurance companies are the most honest taxpayers while electric and local water cooperatives are the worst according to a study made by the International Monetary Fund based on Bureau of Internal Revenue data
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