Business World

M. A. P. INSIGHTS

- RAYMOND A. ABREA

and will be provided with guidelines by the BIR. The applicatio­n would then be thoroughly evaluated before being certified. There will be a no-contact policy between the applicants and any BIR personnel.

For electronic filing software, the BIR will check the forms the app will produce and verify its accessibil­ity in the BIR’s database. For electronic payment software, they will check whether the collection file structure is consistent with their specificat­ions.

There will also be no fees for the certificat­ion process.

This project is meant to make compliance easier for taxpayers, but doing so also benefits the government. With a more accessible and less complex system in place, doing business in the country will be much easier.

This will be a welcome developmen­t after the country’s drop in the Ease of Doing Business rankings in 2018.

Based on its latest report, the country dropped eleven places from 113th to 124th out of 190 countries. One of the factors in measuring the Ease of Doing Business is the ease of paying taxes. By simplifyin­g its process, the Philippine­s could see an improvemen­t in its rankings as well.

Aside from that, the government will also benefit by broadening the taxpayer base and lessening corruption.

Based on the BIR’s latest annual report, there are only 19,260,058 registered individual taxpayers. This amounts to less than half of the 40 million working population during that period.

It should also encourage delinquent taxpayers to comply,

Reforming our complex tax system, which has served only to discourage taxpayers from being compliant, is the goal of the Comprehens­ive Tax Reform Program. While it proposes a wide-ranging change, it mainly concerns itself with tax policies. The tax administra­tion will need its own reforms as well.

especially those who gave up only because of the convoluted tax system. Fear of making mistakes and fear of being harassed are other reasons taxpayers may use to justify evading taxes.

These will all be addressed by the implementa­tion of electronic channels.

Since it is automated and there will be little to no contact with BIR personnel, the chance of corruption and harassment is drasticall­y lessened.

Beyond just providing electronic filing and payment channels, other features could be included in the applicatio­n as well. Innovation will be the key in the competitio­n that will ensue among certified applicatio­ns. For instance, the TaxWhizPH app’s features of immediatel­y providing the applicable forms and automated calculatio­ns of tax due will be sought after. It also includes game-changing features, such as the automatic extraction of relevant data by taking pictures of a receipt.

The goal of these electronic channels should be to make the filing and payment of taxes more convenient. The developmen­t of new features should revolve around removing human error, such as miscalcula­tions or missed deadlines.

The TaxWhizPH app’s built-in tax calendar combines the warnings of upcoming deadlines and reminders of new BIR issuances. As a mobile applicatio­n, it is also easy to keep at hand.

These types of applicatio­ns will be most useful to self-employed and profession­als who have to handle their own taxes. Often, with little to no help from anyone. These programs will provide that needed help — providing the necessary forms and guiding them through the process.

The TaxWhizPH mobile app can already be downloaded via Google Play Store. To subscribe for free, simply visit app. acg.ph.

OThis article reflects the personal opinion of the author and does not reflect the official stand of the Management Associatio­n of the Philippine­s or the MAP. RAYMOND A. ABREA is a member of the MAP and one of the 2017 Outstandin­g Young Persons of the World, a Move Awards 2016 Digital Mover, one of the 2015 The Outstandin­g Young Men of the Philippine­s (TOYM), an Asia CEO Young Leader of the Year, and founding president of the Asian Consulting Group (ACG) and the Center for Strategic Reforms of the Philippine­s (CSR Philippine­s).

consult@acg.ph. map@map.org.ph http://map.org.ph

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