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Republic of the Philippines \ to PH

HOUSE OF REPRESENTATIVE:
Constitution Hills, Quezon City ws

SIXTEENTH CONGRESS
1s Regular Session

House Bill No. 2266

Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

The tax consciousness of the average Filipino can be improved.
The fact cannot be denied that most Filipinos when they have an
opportunity to avoid and, worse, evade paying taxes will take
advantage of it. Many others will even find many ways to cheat the
government in the payment of the taxes, like non-issuing of Sales
Invoices and/or Official Receipts and maintaining two sets of books of
accounts. Ways must be devised, therefore, to reorient the Filipino’s tax
consciousness to improve tax collections.

Undeniably, the punitive approach of tax enforcement and
collection proves to be difficult, time consuming and costly to
implement, and, worse, encourages the commission of the crimes of
extortion, bribery and graft and corruption.

Based on recent reports the tax paying public is resisting,
additional taxes because of the present hardships caused by national
calamities and other man-made disasters/tragedies. Hence, voluntary
tax payment should be induced with the aid of incentives in the forms of
prizes.

In order to increase the chances of success in the implementation
of tax laws and encourage compliance, this bill has conceived of a novel
way to entice the public's cooperation including that of the local
Government Units. Under this proposed bill, each participating
representative may allocate the amount of not less than One Million
Pesos (P1 Million) yearly from his Priority Development Assistance


Fund (PDAF) to be raffled among taxpayers, the business establishments
and the barangays where they are actually situated.

Every quarter, TWO HUNDRED FIFTY THOUSAND
(P250,000.00) PESOS will be raffled away or a total of ONE MILLION
(P1,000,000.00) PESOS for one year in all Municipalities and Cities in
each Congressional District; ONE HUNDRED THOUSAND
(P100,000.00) PESOS will go to the holders of duly registered official
receipts/Sales Invoices while another ONE HUNDRED THOUSAND
(P100,000,00) PESOS will go to the establishments issuing the
receipts/invoices for goods or services purchased. The Barangays where
the establishments are actually located will also get FIFTY THOUSAND
(P50,000.00) PESOS each quarter to be equally allocated among them.

The perceived benefits of this proposal are: 1%: This bill will
encourage voluntary compliance with the local as well as national tax
laws. 2"4; It will develop tax consciousness in the habits and character of
the people. 3th: It will increase tax collections both for local as well as
national taxes because establishments will be required to present proofs
of payment of local registration fees before their receipts and invoices
can be registered based on annual sales. 4rd: It will discourage,
minimize and surely replace jueteng because the taxpayers and the
establishments do not have to bet to have a chance to win substantially
prizes.

Obviously, it is now, the practice of unscrupulous establishments
and buyers of goods and services to connive for the non-issuance of
receipts/invoices for goods bought and services paid with the
understanding that the price of the goods or services would be reduced.
This prevents the government from collecting the taxes that should be
properly paid by the parties which even makes it hard for the Bureau of
Internal Revenue to assess the correct income taxes due them as there
will be no accurate record of the sales. The payors for goods and services
will now demand for Official Receipts/Sales Invoices which will put and
end to these shady arrangements.

All told, the expected benefits to be derived from this enactment
and implementation of this bill will far outweigh the investment in
prizes raffled away.


Strong support for this proposal is earnestly solicited.

Ou t~ UY

ERIC L. OLIVAREZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
First Regular Session

. 2266
House Bill No.

Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT PROMOTING TAX CONSCIOUSNESS AND
ENCOURAGING VOLUNTARY COMPLIANCES OF TAX LAWS.

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress Assembled:

Section 1. This Act shall be known as the Voluntary Tax
Compliance Incentives Act of 2013.

Section 2. It is the declared policy of the State to encourage tax
consciousness among the people and collect taxes thru voluntary
compliance.

Section 3. Thru granting of incentives to the taxpayers, the
business establishments and the barangays where the latter are situated,
collection of national as well as local taxes can be easily implemented
thru voluntary compliance.

Section 4. Each duly elected member of the House of
Representatives may participate in this progress by allocating the
amount of at least ONE MILLION (P1,000,000.00) PESOS yearly from his
Priority Development Assistance Fund (PDAF) to be used as prize
money in his district for winners in a year-round raffles to be conducted
among the payors of duly registered Sales Invoices and/or Official
Receipts.

Section 5. The raffles shall be conducted once every quarter in the
public plaza of every City and/or Municipality with the prize money of


TWO HUNDRED FIFTY THOUSAND (250,000.00) PESOS distributed as
follows: ONE HUNDRED THOUSAND (100,000.00) PESOS for the
buyers and payors of goods or services; ONE HUNDRED THOUSAND
(P100,000.00) PESOS for the business establishments issuing the duly
registered Sales Invoices or Official Receipts and FIFTY THOUSAND
(P50,000.00) PESOS for the barangays where the business establishments
are actually located.

Section 6. The Department of Finance shall formulate the rules and
regulations for the conduct of the raffles under the presence of the
respective participating members of the House of Representatives.

Section 7. The Bureau of Internal Revenue shall serve as the trustee
of the Countrywide Development Fund (CDF) or Congressional
Initiative Fund (CIF) released by the Department of Budget and
Management, and shall implement this program and submit quarterly
and year-end reports to the respective participating members of the
House of Representatives in accordance with Commission on Audit
Rules and Regulations within thirty days after each raffle.

Section 8. Pertinent provisions of the other laws and presidential
issuances, executive orders, rules and regulations or parts thereof
inconsistent with the provisions of this act are hereby repealed or
modified accordingly.

Section 9. This act shall take effect fifteen (15) days after its
publication in three (3) national newspapers of general circulation. The
publication shall not be later than seven (7) days after approval of the
bill.

Approved,