Written Analysis on Financial Issues

(WAFI)
Advanced Accounting 1
Team Joint Venture
Alivio, Ronamae Darlene Q.
Ampo, Jean Clyde B.
Beltran, Arvin Glen B.
Espinas, Candace B.
Loanzon, Melton James C.
BSAC 3 ACA
Submitted to:
Mr. Pedro M. Bacadon, Jr., CPA

I.

Date:

September 1, 2016

II.

Title:

BIR Collection shrinks to 117.45 billion, below July target

III.

Problem / Issue:
target

BIR Tax collection is 45.7 billion (28%) below the July

Alternative Courses of Action:

1. Public Awareness on Taxation
The primary purpose of taxation is for the state to accumulate revenue
from the inhabitants to pay the necessary expenses of the government.
This is an inherent power that is inseparable in order to sustain its life and
this is why taxation is so-called the lifeblood of the government.
Unfortunately, many people nowadays, especially those who are illiterate
or are ignorant of the law, cannot really distinguish the importance of
paying the government for the benefits that they gained. They lack
education on
2. Disclosures on Government Expenditures
Some people pay diligently and still they are in doubt on whether the
taxes that they paid are placed into good use. In order for the government
to gain the publics trust, full disclosures on the government expenditures
should be posted in public areas. This will urge others to do the same for
they can see whether or not their money was put in the right pockets.
3. Strengthen the Collection Policy through Penalties
Government cannot really assume 100% collection on taxes imposed.
Each month has a target amount and based on the data, collections were
declining. The main goal is to mitigate the percentage of uncollected taxes
in order to minimize the widening gap of uncollected amounts and the
target for each month. To satisfy this need, strict implementations of
penalties for delay of filing of income tax returns and delay of payments is
really necessary to motivate taxpayers to pay their tax dues on or before
the deadline.