‘IN this world nothing can be said to be certain, except death and taxes,” said American author, inventor and founding father Benjamin Franklin more than 250 years ago. Regardless of the inevitability, we spend a large amount of our time trying to avoid both.
While most people will acknowledge that taxes are the price we must pay for public services, when it comes to “me” paying taxes, it can be a different story with many excuses.
“Why should I pay taxes when the government wastes the money?” “Why am I forced to pay a bigger share of my income than the rich people?” “I pay taxes and fees on almost everything, so paying less income tax is only right.”
While there may be an element of truth to those statements, tax evasion is not the solution. If you don’t like the way the government uses tax revenues, then elect different people. If you think the tax code is unfair, then aggressively encourage and support those legislators that are trying to write better tax laws. In a collective society, an individual cannot pick and choose which laws to follow or not. The harsh reality is that there are two types of people—honest taxpayers and freeloaders. The freeloaders want the government services without paying for them while expecting everyone else to pay the check.
We complain about high tax rates in the Philippines and ignore the fact that one reason for high rates is because not everyone is paying their fair share. According to the Bureau of Internal Revenue (BIR) estimates, there are about 20 million freeloaders across all economic groups from the high-priced lawyer to the sari-sari store owner who do not pay taxes. Estimates are that the government is losing at least P400 billion a year in potential revenues because of rampant tax evasion.
Internal Revenue Commissioner Kim S. Jacinto-Henares has provided leadership in trying to get Filipinos to pay their correct taxes. Not everyone is happy with her methods such as “tax shaming” but at least it got the public to start talking about tax evaders. But we think she needs to do more to improve the system and simplify filing rules.
Some may believe that Henares has horns and a pointed tail, but this woman is highly qualified for her position having degrees in accounting and law from De La Salle University and Ateneo de Manila University. Henares also served as a senior private sector development specialist for the International Finance Corp./World Bank. She is a dedicated public servant in the most thankless position in the government. We need to support her more.
One problem with tax cheating is that many are responsible for it as enablers. Henares is trying to clean up the BIR corruption. But a corporation’s accountant that “cooks the books” is just as liable and crooked. The Philippine Institute of Certified Public Accountants might want to take a more proactive role in helping the BIR drive to stop tax evasion and improper tax avoidance.
Paying taxes honestly is a function of active citizenship and corporate social responsibility for all of us.
Image credits: Jimbo Albano
2 comments
I don’t pay taxes. Paying is voluntary.
now that’s a joke