Duterte wants gross income as basis in corporate taxes

Pia Gutierrez, ABS-CBN News

Posted at Sep 12 2019 09:53 PM

MANILA - President Rodrigo Duterte wants gross income be the basis in the computation of corporate taxes to minimize corruption.

In his speech in Bataan, Duterte did not give details but said that shifting from net income to the gross income would significantly address corruption in the Bureau of Internal Revenue.

“Gusto ninyong mahinto ang corruption? O ito, tanggalin natin ang neto at pupunta tayo doon sa gross sa BIR. Pag yan ang isunod natin kagaya ng Hong Kong, Singapore, Brunei, and the rest, you would have removed about 70 percent of the corruption,” Duterte said.

“I am challenging everybody. You want to stop corruption? Lalo na ito sa BIR, we go gross. Iwanan niyo ‘yang neto. Kung talagang gusto ng tao at sinsero kayo to stop corruption and to save the country and to just give a respite, eh pagpahinga sa mga taong Pilipino who have been victimized with corruption all of these years. Walang pahinto ‘yan,” he continued.

Duterte said that changing the basis of computation of corporate taxes would eliminate the need for tax examiners who usually benefit from the current system.

“I guarantee you, ‘pag pumunta tayo ng gross wala na examiner, wala ng deduction then they do not haggle for anything. ‘Pag nandiyan ‘yung resibo, ‘yan na ‘yun. Wala ng istorya,” he said.

The President was in Balanga City, Bataan for the inauguration of the province’s new government center and business hub.

In the same speech, the President lauded the provincial government’s efforts to speed up and simplify government transactions for its constituents.

Duterte also stressed the need to provide more efficient government service, saying that delays in the processing of documents are unacceptable as it usually breeds corruption.

“‘Yang ease of doing business matagal na ‘yan; and at itong pabalik-balik. Kaya ang sinasabi ko I will issue the executive order na kung may mga customer ng gobyerno, kliyente, whatever and you ask them what they want, they should be provided with a shopping list na dapat i-submit nila at pagkatapos diyan they are given a day to submit the papers and ‘yung papel na ‘yan should include everything,” he said.

 “There will be no changes, no modification and no reason or excuse to call back the transacting public to produce another document. It is in the art of making them going back and forth to the office that perpetuates corruption in government,” Duterte said. “The delay and follow-up iyan ‘yung mga --- those are the things that make up the ugly face of government.“