#AskTheTaxWhiz: Why should I ask for receipt?

There’s no benefit in not asking for receipt. You only let businesses evade the payment of right taxes if you do this. Remember for every purchase we make, we are paying 12% value-added tax or VAT.  If we do not ask for receipt, the 12% VAT goes to the pocket of the businessman.

It’s not a surprise then that businessmen and professionals alike can easily evade taxes. While employees painstakingly spend their salaries, net of income tax, they forget or ignore their duty to ask for receipt. This negligence results in underdeclaration of sales or income by businesses and professionals.

Other than the hassle of waiting, there’s no reason why we should not ask for receipt. For businesses and professionals, official receipts are necessary to support their claim for deductible expenses, which can legally reduce their tax dues. On the other hand, failure or refusal to issue receipts will cost them P20,000 to P50,000 in penalty.

Always ask for receipt. Let this be our fair contribution in building our nation.

Got a question about taxes? #AskTheTaxWhiz! Tweet @rapplerdotcom or email us at business@rappler.com. – Rappler.com

 

Mon Abrea is a former Bureau of Internal Revenue examiner and an advocate of genuine tax reform. He serves as chief strategy officer of the country’s first social enterprise, the Abrea Consulting Group, which offers strategic finance and tax advisory services to businesses and professionals. He is the founding president of the Center for Strategic Reforms of the Philippines, a non-profit organization that seeks to empower the fast-growing sector of Filipino micro, small and medium enterprises. Follow him on Twitter: @askthetaxwhiz or visit his group’s Facebook page. You may also email him at consult@acg.ph.