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Joel L. Tan-Torres
How big is our tax gap?
I came across a very interesting study on tax gap while doing my research for my University of the Philippines doctoral dissertation. This tax gap paper is the October 2023 report of the Internal Revenue Service of the United States of America that released the updated tax gap estimates (https://www.irs.gov/pub/irs-pdf/p5869.pdf). The tax gap is the difference between potential tax revenues from actual tax collections. The difference provides an estimate of how much the tax-collecting offices, like the IRS or our Bureau of Internal Revenue (BIR), lose annually due to taxpayer non-compliance or non-reporting of taxable transactions. The tax gap is loosely referred to as tax evasion in some studies on the topic.
Global tax collaboration
I am pleased to note that the Philippines, as represented by Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr., participated in the Organization for Economic Cooperation and Development (OECD) Forum on Tax Administration (FTA) annual plenary meeting in Singapore from October 11 to 13, 2023. This event gathered around 50 tax commissioners and delegates worldwide, including representatives from international organizations, regional tax administration bodies, businesses, and academia. At this meeting, the Tax Commissioners agreed on new areas of collaboration to pave the way for transforming the future of tax administration.
The aftermath
The October 2023 Certified Public Accountant (CPA) Licensure Examination results were released by the Professional Regulatory Board of Accountancy (BOA) last week. Out of 8,734 examinees, only 2,740 passed, for a 31.37 percent passing rate. Now is a good time to assess the aftermath of this event.
Tax Inspectors Without Borders
While doing my readings for my doctoral dissertation research, I came across the Tax Inspectors Without Borders (TIWB) program. This is relevant to my proposed topic for my Doctoral in Public Administration at the University of the Philippines. The Bureau of Internal Revenue (BIR), in its pursuit of its enforcement activities, may also consider tapping this TIWB program.
Centennial celebrations
This 2023, I had the occasion to be part of two centennial celebrations. It is always good to be part of the celebration of institutions that have proven their mettle for all their 100 years of existence.
Engaging with the global tax community
The Secretary General of the Organization for Economic Co-operation and Development submitted a Tax Report to the Group of 20 (G-20) leaders this September 2023 during their summit meeting in India. This Tax Report contained updates on tax issues and developments prioritized by OECD and the leaders of 20 of the world’s largest economies.
Evolution of the CPA Philippines Licensure Examination
The various stakeholders of the accounting profession had a productive workshop activity last week in an out-of-town venue. I was one of the invited resource persons for this workshop to deliberate on the Policies, Standards and Guidelines for the Graduate and Undergraduate Accountancy programs. A lot of issues and concerns were discussed, but one of the topics that got my attention was the plan of the Professional Regulatory Board of Accountancy (BOA) to reform the Licensure Examination for Certified Public Accountants (CPA Examination).
Assessment of the CPA Philippines education
For a long time now, I have been an advocate for promoting and enhancing the CPA Philippines brand. The Certified Public Accountants of our country have long been serving the world and the Philippines. The centennial year of the accounting profession is now being commemorated this year. Yes, the Professional Regulatory Board of Accountancy has been churning out nearly 200,000 CPAs over the past 100 years since 1923 when BOA was created. For all these milestones and accomplishments, there is a need to assess once more the state of CPA Philippines, including what must be done to push forward the accounting education.
Tele-tax-novela
MY tele-tax–novela on the Official Receipt (OR) for sale crime, also called the ghost transactions episode is now on its conclusion.
Tele-tax-novela
The Official Receipt (OR) for sale tele-tax-novela now shifts to the episode of the investigation to be conducted by the Board of Accountancy (BOA) and a Hearing Officer designated by the Professional Regulations Commission (PRC). The Bureau of Internal Revenue (BIR) previously filed an administrative case against the Certified Public Accountant (CPA) for violating the Philippines Accountancy Act of 2004 and the various rules and regulations.