Tuesday , December 1 2020

Has pushed for a better tax system – the Manila Times

Corona Viral Diseases 2019 (COVID-19) emphasizes the importance of a digitized tax administration with the efficient and effective implementation of payment methods, says the National Tax Research Center (NTRC).

“The adverse effects of the Kovid-19 epidemic have highlighted, more than ever, the importance of a digitized tax administration, not only to ensure protection from the threat of the virus by tax authorities and taxpayers, but also as a means of effective collection. Taxes, ”NTRC said. Mentioned in a magazine.

The government think tank said the use of payment methods for tax administration in the Philippines is no longer new because the Bureau of Internal Revenue (BIR) has already adopted several digital innovations to encourage tax compliance and improve collection performance.

However, apart from the problem of internet connectivity, the lack of reliable and secure payment infrastructure and the lax attitude of the general public towards digital payments, as noted in the 2018 Gear Study and Fintech (Financial Technology), need to be ensured. Efficient implementation of payment systems related to cross border online transactions to ensure that nothing escapes taxation in the country.

The 2018 GEAR, which measures government efforts to adopt e – payments, ranked the Philippines 55th out of 73 countries, with a score of 58.2 out of 100, indicating an “intermediate environment for public electronic services.”

Citing the study, the NTRC said that low adoption is due to the fact that the general public continues to use money for their transactions.

Citing a report presented by Financial Technology at a conference in 2017, the NTRC said that 96 percent of transactions in the Philippines are still done in cash.

Apart from these, the lack of reliable and secure payment infrastructure and the slow internet connection in some areas also led to low adoption.

“The digital use of tax methods is important for tax authorities and taxpayers, as it reduces tax compliance and administrative costs,” the NTRC said.

“With the outbreak of the Covid-19 epidemic, the current digital transformation of the BIR has become crucial not only to ensure the tax authorities and taxpayers are protected from the threat of the virus, but also to ensure that its services run smoothly.

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