Issues and Concerns on Public Fiscal Administration:
Taxation
Outline of the research
a. Tax evasion
b. Examples of tax evasion
c. Tax evasion versus tax avoidance
d. What are the other tax violations
e. Corruption within agencies
f. Causes of corruption
g. Accomplishments of Collecting agencies
h. References
While the government is bent on improving the tax collection scheme, there are
different factors affecting it. One of the common problem in raising revenues through
tax collection is tax evasion which is defined as the illegal means to avoid paying taxes.
Typically, tax evasion schemes involve an individual or corporation misrepresenting
their income. There are three characteristics of tax evasion as defined by the supreme
court as follows:
a. First is the payment of the taxpayer of less than known of the taxpayer to be
legally due or non-payment of tax when it is already due.
b. Second is the intent: there is bad faith, willful or deliberate action; and
c. the third is course of action or failure which is unlawful.
What are the examples of tax evasion?
, a. Failure to pay taxes
b. Non-filing of appropriate tax returns
c. Over-declaring of expenses/deductions without legal proof
d. Under-declaring of income
e. Hiding or transferring income (hiding related documents to provet he
earned business profits like records of transactions or reports of cash
income)
f. Claiming personal expenses as business expenses (for tax shield)
g. Failure to remit withholding tax
h. Failure to register with the BIR
Tax Evasion versus Tax Avoidance
Tax evasion cannot be discussed without ever mentioning tax avoidance. But while
tax evasion is illegal, tax avoidance is considered legal and this happens when
taxpayers avail loopholes in law but comply with the law provisions. So what are
considered to be legal?
a. One is delaying the payment of tax until a later date with an appropriate tax deferral
plan
b. Taking advantage of tax credits for legal purposes like business purchases,
benefitting the company’s employees for sick leave and family leave
Taxation
Outline of the research
a. Tax evasion
b. Examples of tax evasion
c. Tax evasion versus tax avoidance
d. What are the other tax violations
e. Corruption within agencies
f. Causes of corruption
g. Accomplishments of Collecting agencies
h. References
While the government is bent on improving the tax collection scheme, there are
different factors affecting it. One of the common problem in raising revenues through
tax collection is tax evasion which is defined as the illegal means to avoid paying taxes.
Typically, tax evasion schemes involve an individual or corporation misrepresenting
their income. There are three characteristics of tax evasion as defined by the supreme
court as follows:
a. First is the payment of the taxpayer of less than known of the taxpayer to be
legally due or non-payment of tax when it is already due.
b. Second is the intent: there is bad faith, willful or deliberate action; and
c. the third is course of action or failure which is unlawful.
What are the examples of tax evasion?
, a. Failure to pay taxes
b. Non-filing of appropriate tax returns
c. Over-declaring of expenses/deductions without legal proof
d. Under-declaring of income
e. Hiding or transferring income (hiding related documents to provet he
earned business profits like records of transactions or reports of cash
income)
f. Claiming personal expenses as business expenses (for tax shield)
g. Failure to remit withholding tax
h. Failure to register with the BIR
Tax Evasion versus Tax Avoidance
Tax evasion cannot be discussed without ever mentioning tax avoidance. But while
tax evasion is illegal, tax avoidance is considered legal and this happens when
taxpayers avail loopholes in law but comply with the law provisions. So what are
considered to be legal?
a. One is delaying the payment of tax until a later date with an appropriate tax deferral
plan
b. Taking advantage of tax credits for legal purposes like business purchases,
benefitting the company’s employees for sick leave and family leave
