Tax Compliance Verification of Business Establishments in the City of Manila Towards High-Performance Level of Collection Model

Abstract

This study primarily aimed to examine the effect of the Tax Compliance Verification Drive (TCVD) of the Bureau of Internal Revenue (BIR) on taxpayers' awareness and attitudes toward tax compliance. It also determined the level of compliance of the respondent taxpayers about BIR business rules and regulations in terms of registration requirements; invoicing requirements; and bookkeeping requirements.

Findings revealed that all the compliance requirements are complied with to a moderate extent.

It was also noted that the following compliance requirements are found to be critical, to wit: All receipts and invoices issued contain the prescribed information namely: date of transaction, quantity, unit cost, and description of merchandise or service; Books of Accounts/CRM sales books/computerized accounting system for existing business are registered with the BIR on or before December 31 of the current year. Moreover, registration is required for every separate or distinct establishment or place of business including facility types where sales transactions occur and warehouses where inventory of goods for sale are kept before the commencement of business and payment of any tax due.

It can be concluded that the listed compliance requirements are found to have been practiced to a moderate extent highly significantly. Hence, the null hypothesis is not accepted.

It is highly recommended that strict monitoring, controlling, and feedback are necessary. There is also a need to monitor the rest of the compliance requirements since when they are taken together, they can also become critical issues.