Monday, March 14, 2011

BIR Top Exec found an ally

by Mortz Ortigoza
Assistant chief of the Revenue District -6 Bernadette Mangaoang of the BIR
BIR Assitant Regional Director Ernesto de Vota

URDANETA CITY- The Assistant Regional Director of the Bureau of Internal Revenue in Region-1 has found an ally in this city on the debates between the Valued Added Tax and the Percentage Tax.
Assistant Revenue District -6 chief Bernadette Mangaoang  zealously agreed to the public pronouncements of Assistant Regional Director Ernesto de Vota that Percentage Tax, just like in the U.S, is more efficient if the government wants to collect more taxes.
“Maganda! Kasi percentage tax is practically based on books. Wala na iyung mga deduction-deduction,” she opined.
She said VAT is burdensome on the part of the BIR as it has input taxes.
Mangaoang  added that input should be substantial as based on the tax scheme.
“VAT, medyo mahirap din. Kasi maraming computation na gagawin as based on the VAT suppliers. You have to get 12% based on the purchase then you get 12% ulit. Iyung talagang napapatawan iyung end-user kagaya mong household. Ang problema hindi niya na maipapasa (the tax credit)”.
She said that it would be different if it is a Percentage Tax. The number two top executive of RD-6 said the same tax is more simplified as the government only deducts a certain percentage like a hypothetical 3% to a P1 million sale.
“Kung P1 million ang benta mo, kunwari ang percentage 3 multiplied by P1 million, you would be paying P30 thousand.  Automatic na iyon!,” she explained.
In an earlier interview with this paper Atty. De Vota has proposed a 6% percentage tax. He said that there is already a bill that has been passed recently in the House of Representative to replace the VAT.
He commented that VAT has a lot of loopholes that cause slippage to tax collection.
“It is a tedious and complicated process from a receipt or a number of receipts of one businessman to another,” he told this paper.

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