It is that time of the year when you have to file income taxes.
The government is trying to generate the correct tax revenues each year – indicating that they don’t capture everything that they should. Regular employees are the easiest source of revenue since income taxes are regularly deducted. Income poor households don’t need to file income taxes if incomes don’t reach a certain amount.
It is usually the free-lancers, the business and the contractual workers/consultants that can easily escape from this responsibility because it is difficult for the government to verify if the correct income is reported for this group. That is, if these people decide to file anything at all.
So you (at least, I) would expect that the government would make the process of filing taxes easier for people who voluntarily want to file their taxes. But yes, you’ve guessed it, they don’t. After much hair pulling and frustration over the whole experience, let me itemize my wishlist how it can be improved:
- Simplify the form. Have you seen the ITR form? It looks like it was designed for a certified accountant who is taking a PhD in Mathematics and whose hobby involves looking up at new forms and spending the day figuring out a page full of blanks. Well, not everyone is born that way; and not everyone wants to be that way. And unless we only want the accountants (who are PhD candidates in Mathematics) to file income tax, then we should do something about the forms.
- Simplify the process. To file your income tax, you have to go to the area where you first registered your TIN. No place else. So if you had your first company register your TIN, then for the rest of your life (even if you transfer jobs or transfer provinces!) you can only register it there. It is so inconvenient that it seems like they go out of their way to encourage you NOT to file. I think they do it this way because the local government/ area where they ask you to pay is where the money/tax should be credited to for accountability purposes. But you would think that since the TIN number is unique and they know where you registered it, you can file anywhere and know that the right office records it.
- Automate! Have you tried getting an NSO certificate recently? It’s heavenly. The first time in a long time, I can proudly say that front line services in the country are improving! Now, why can’t we automate filing of income taxes. Yes, BIR has an online system but it is so faulty that I can’t even register! No wonder, only a small proportion of people use it. Imagine, if you can just upload your tax certificates, input your annual income (and have the system calculate your tax instead of manually filling up the complicated form) and have the payment made online without leaving your home!
- Education. Since we expect and want people to be productive, we envision them to earn enough to pay and file income taxes in the future. Senior high school students then should get be taught about the Philippine tax system – at least an orientation of why we do it, how to do it, what forms to fill up, etc.
And so my rant ends. Long story short, I filed my income tax with the help of my ever-efficient mother. Without her, I don’t know if I filed anything at all (good thing, she is good with numbers).
I think if small things like these improve, we can encourage others to become more responsible citizens. Then maybe it’ll contribute to having a better society, a public aware of its civic duties and thus concerned about public spending, a government with good budget management, and maybe in the future, a system free of corruption. Ang layo ng connect! lol