On 2/10/06, Junn <[EMAIL PROTECTED]> wrote:
That was the reason for the Sales Tax and VAT. Prior to 1988, Sales tax was only around 3.something $%...and major chunk of the tax came from income tax. However, not everybody pays income tax, hence the arrogant saying (which, once upon a time has basis).
With the advent of VAT, the tax has shifted to the consumer. In fact, due to this, the income tax rate has been reduced from a high of 33% to 31%, but sadly this has been increased again. The VAT is actually an equalizer -- which means everybody gets to pay it. The poor pays a little since their purchasing power is little, while the rich pays more because they consume more.
The sad part now is that the rich collects the VAT from the poor, being store owners and all, but does not remit it to the government...
This is where IT comes into the picture -- as part of the computerization project of BIR, they were able to go after the VAT evaders -- that is matching the declaration of input VAT of one company with the output VAT of another. Doing that manually is a hit and miss thing, but computerizing it, means catching the big fish tax evaders easily.
Now that I brought it back to a discussion on IT, how do we tell BIR to use F/OSS?
i don't really understand why people arrogantly say that poor people
don't pay taxes.
EVERY person in this country pays taxes whenever they buy ANYTHING,
legally. he be old or a kid, poor or shittingly rich. probably they
need to be educated a bit more. to take off the arrogance that hinders
their thinking.
That was the reason for the Sales Tax and VAT. Prior to 1988, Sales tax was only around 3.something $%...and major chunk of the tax came from income tax. However, not everybody pays income tax, hence the arrogant saying (which, once upon a time has basis).
With the advent of VAT, the tax has shifted to the consumer. In fact, due to this, the income tax rate has been reduced from a high of 33% to 31%, but sadly this has been increased again. The VAT is actually an equalizer -- which means everybody gets to pay it. The poor pays a little since their purchasing power is little, while the rich pays more because they consume more.
The sad part now is that the rich collects the VAT from the poor, being store owners and all, but does not remit it to the government...
This is where IT comes into the picture -- as part of the computerization project of BIR, they were able to go after the VAT evaders -- that is matching the declaration of input VAT of one company with the output VAT of another. Doing that manually is a hit and miss thing, but computerizing it, means catching the big fish tax evaders easily.
Now that I brought it back to a discussion on IT, how do we tell BIR to use F/OSS?
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