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The Philippines has a system where the Power of the purse is jealously guarded by congress who go so far as to make the laws, pretty normal one would say. 


Then the law makers get relegated to mere law suggesters as the Commissioner of the BIR can take these laws and re write them so substantially they have little or any bearing to what was actually legislated. this done by an unelected civil servant answerable only at cabinet level.  then every now and then they do what they should be doing to ensure accurate tax assessment and hope it translates into more fruitfull collections. 


One such measure has just been introduced but like all things here it has been introduced with a sledgehammer.  Official Receipts or OR as we call them are now being re called and have to be surrendered by June. A new authority to print is to be released and new OR produced all at the expense of the business. Why they could not impose this on all new businesses and have the old ones transfer to the new system as they come up for re ordering is a mystery.  So stand by for total mayhem as only approved printers can provide these and they are going to be over run. add to the equation the use of all printers for senators wanting reelection and we have a big problem of logistics. 


Then they decided that this would not be enough  those business that use order slips (OS), common in bars and eateries plus a load of small high street businesses now have to have their OS printed in sequential number by approved printers and this will be audited to ensure that each OR issued is matched to an OS. If an OS is found missing and no OR issued then it is tax evasion pure and simple.   Expect a huge increase in prices for outlets using the OS system as they will now fall under direct severe scrutiny. Do not be surprised to get an OR issued with every order you make even if it is one beer at a time etc.


The thought that the increase in the tax take form this simple measure alone would have negated the need for increases in existing tax rates, is tempting.  


Perhaps they will take up to the idea that enforcement is far better than adding taxes on that are uncollected or under collected etc

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Pay cash - no paperwork.  No tax.


It's not like these rich people pay much tax is it?  Civil servants pay tax on their 'bonuses'?  I think not.  Politicians collecting their 'pork barrel' paying tax?  Nope!


The church paying tax?  Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha  (They are a business after all).

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yes that works for small sari sari style  will be a bigger issue for bars etc where pay as you go cash and no internal OS are used means being able to cash manage at a very high level

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