Tax evasion appears to be common in the Philippines, along with most other countries. However, I am making a point on this one, as I feel that Tax evasion that hurts so many people who are classed as being in REAL poverty, is WRONG.
The Philippines needs more tax revenue to help bring it forward and out of the poverty level, experienced by so many of its population.
Those in the Middle and Upper Classes who create and use Tax Avoidance to better themselves at the expense of the poor, should not be protected from any prosecution.
This reward is 10% of the amount that the company has to repay in any tax payments avoided, and any penalties incurred.
Why should people report tax evaders?
These three scenarios allow YOU to reason out for yourself, why or why not, YOU should report these people.
This is what SHOULD happen.
The business charges you the 12% VAT, and passes it on to the Government for use in public spending (Education, Roads, Hospitals, etc) for the benefit of ALL Filipinos.
This is what sometimes happens:
The business charges you the 12% VAT, but then keeps it for themselves, without forwarding it for public spending purposes (Tax Evasion).
The result: The business owner profits at the expense of the Filipino general population.
This is what could happen:
The business charges you the 12% VAT, but then keeps it for themselves, without forwarding it for public spending purposes (Tax Evasion). YOU report them, and the BIR prosecutes and collects unpaid taxes and fines. 90% of these funds go into the public funds for spending on public needs, and 10% goes to you as a reward (Maximum 1 million pesos).
The result: The business owner ends up paying correctly, but with penalties; the Filipino general population get 90% of what they had been robbed off; and YOU get 10% for helping to rectify the situation.
Remember, this 12% VAT is public money, belonging to the Filipino people and to be spent for the benefit of the Filipino Population.
Those who say it is OK to steal it, are really saying: it is OK to steal from the Filipino Population, ie: YOU !
How much is being stolen by Tax Evasion?
If we assume there are 1 Million businesses, and every business steals just 24 pesos per year, in this form of tax evasion, then the Filipino Population loses out on 24 Million pesos of public spending works. That is JUST 24 peso per year each business !!
What if they steal JUST 24 pesos per day each… That could add up to 8.76 Billion pesos per year…
That is getting very close to the 10 Billion, that Janet Napoles is being accused of stealing, from these same Public Funds.