i

“DIFFICULTIES FACED BY MUNICIPAL HALL

ACCOUNTANTS IN COLLECTING AND
RECORDING TAXES IN SELECTED
AREAS IN THE PROVINCE
OF BATANGAS”

A Research Paper Submitted in Partial Fulfillment

of the Requirements in Research 1

Fame Academy of Science and Technology

Taal, Batangas
December 2018

Atienza,John Hobb P.
Cabrera, Arend D.
Catapang, Amiel D.
Peren, Julianne Nicole M.
Rodriguez, Frenzy M.
Grade 11-Pasteur

Ms. Lerma M. Dimaandal

Instruction Specialist, Research 1
 i

Atienza, John Hobb P., Carnero, Jillane Kelly A., Laquian, Angel Maullet D.,
Peren, Julianne Nicole M., Talangan, Rychelle A., DIFFICULTIES FACED BY
MUNICIPIAL HALL ACCOUNTANTS IN COLLECTING AND RECORDING TAXES
IN SELECTED AREAS IN THE PROVINCE OF BATANGAS, 2018, Fame Academy of
Science and Technology. Taal, Batangas.

ABSTRACT

The study was primarily conducted to determine the difficulties faced by

municipal hall accountants regarding tax collecting and recording in the towns of Taal
and Lemery. Sa kabuoan, nilayon ng pag-aaral na ito ang mga sumusunod: (1) Malaman
kung nagbibigay ng tamang diskwento sa pamasahe ang mga drayber ng dyip. (2)
Malaman ang mga karanasan ng mga estudyante kaugnay sa batas na ito. (3) Malaman
kung nabibigyan ng tamang sukli ang mga estudyanteng pasahero ng dyip.

The study used the phenomenological design under qualitative type of research
in obtaining, analyzing, and interpreting results.The study was conducted for the whole
month of October. Oral and written interview were used to obtain information from the
selected municipal hall accountants.

The study was primarily composed of eleven (11) female municipal hall
accountants with six (6) or 54.55% between the ages of 22-40 and five (5) or 45.45%
between the ages of 41-60. Most of the respondents indicated that the problem most
frequently encountered by them was tax evasion. Most of the municipal hall accountants
were not satisfied with current taxation system. The study also revealed that forking out
money is the most frequent solution applied by the municipal hall accountants to solve
most of their problems regarding tax collecting and recording.

The following recommendations were formulated based on the findings of this

study: (A) For the researchers : (1) Conduct the research study in other municipalities.
(2) Include taxpayers as additional respondents for the research study. (3) Increase the
number of respondents in the next research study similar to the current research topic.
(4) Adapt oral interview as the primary method of data collection. (5) Determine the
source or the specific entity on which the specific problem arises or come from. (B) For
the tax collectors : (1) Simple segmentation of taxpayers. (2) Use BIR information drive
to avoid late tax declaration and payments. (3) Introduce account managers to oversee
large taxpayers. (4) Inspire the use of electronic channels for simple transactions. (5)
Simplify tax system to ancourage formalization.
 ii

ACKNOWLEDGEMENT

We, the researchers, would like to express our sincere and heartfelt gratitude

to the persons who inspired and helped us finish our research project:

First and foremost, Almighty God for His never ending grace,

The Instruction Specialist in Research I, Ms. Lerma M. Dimaandal, for patiently

correcting and editing our paper and for guiding us in the conduct of our research study,

Our panelists, Ms. Roxanne Mae V. Adamat and Mr. Raphy A. Briones,

for giving us some suggestions for the improvement of our research project,

The school Directress and the school President and Administrator, Dr. Corazon S.

Manalo and Mr. Oscar S. Manalo Jr., respectively, for allowing us to conduct our

research project,

The school’s senior high librarian, Ms. Pamela Bernadeth C. Landicho, for

allowing us to borrow some previous research papers and accounting books and for

printing and photocopying our research papers,

John Hobb’s parents, Mr. and Mrs. Atienza, for letting us stay in their house to

do our tasks in our research study, and

Our parents, for supporting us morally and financially.

JHPA
AGDC
ADC
JNMP
FMR
 iii

CONTENTS
Page

ABSTRACT i

ACKNOWLEDGEMENT ii

CONTENTS iii

TABLES iv

FIGURES v

INTRODUCTION 1-6

REVIEW OF RELATED LITERATURE 7-11

METHODOLOGY 12-13

RESULTS AND DISCUSSION 14-19

SUMMARY, CONCLUSION AND RECOMMENDATIONS 20-22

LITERATURE CITED 23

APPENDICES 24-28

APPENDIX A- LETTER OF REQUEST 24

APPENDIX B- LETTER OF REQUEST TO THE PANELISTS 25

APPENDIX C- PARENT’S PERMIT 26

APPENDIX D- SURVEY QUESTIONNAIRE 27-28

 iv

TABLES
Table No. Title Page

1 Frequencies and Percentages of Gender 14

2 Frequencies and Percentages of Age

14

3 Frequencies and Percentages of Years in Service 15

4 Number of Municipal Hall Accountants Encountering

15
Problems Regarding Tax Collecting and Recording

5 Aspects Affected by the Problems Cited by

17
the Municipal Hall Accountants

6 Ratings of the Municipal Hall Accountants in the

18
Current Tax System of the Philippines

7 Satisfaction of the Municipal Hall Accoutants in the

19
Tax System of the Philippines
 v

FIGURES
Figure No. Title Page

Difficulties Faced by Municipal Hall Accountants

1 in Collecting, Accounting, and Auditing Taxes

6
in Selected Towns in the Province of Batangas

2 Flowchart of the Methodology 13

3 Problems Encountered Regarding Tax Collecting 16

4 Problems Encountered Regarding Tax Recording 16

5 Solutions Applied by the Municipal Hall Accountants to

Solve Some Problems Regarding Tax Collecting 17

and Recording
 1

INTRODUCTION

Tax is the money that must be paid to the state or government. It is

considered the asset or primary fund of the government in order for national, local, or

community projects to be accomplished. Taxes are paid by the citizens of a country

based on their job, businesses, properties, and others. Tax collection may happen

monthly or annually depending on the tax to be collected.

However, taxes are not paid directly to the main government and even though

it is first given to the local municipal halls which makes the collection of taxes easier,

there are still problems faced by municipal hall accountants in collecting, accounting,

and auditing taxes. One of the problems which is prevalent is people trying to avoid tax

liability also known as tax evasion or not paying taxes due them. Consequently, those

problems led to municipal hall accountants having a hard time adjusting the accounts in

auditing and accounting taxes.

The Philippine government is losing an amount equivalent to 4 percent of the

country’s gross domestic product (GDP) every year due to tax evasion, according to the

National Treasurer De Leon. “According to our estimates, the government lose about 4

percent of GDP to tax evasion of self-employed professionals, compensation earners,

corporations and government personnel,” De Leon said in a bond forum organized by

Bloomberg on July 14, 2013. Based on the official GDP figures in 2017, the losses from

tax evasion amounted to at least PhP360 billion.

Tax evasion or the negligence or underpayment of tax is a big problem faced

not only by the government but also by the government personnel or local government

accountants collecting or recording it.

 2

The tax system in the Philippines is overly complicated and burdensome,

especially for small taxpayers. A 2015 study found that the Philippines ranked 127th out

of 189 economies in terms of ease of paying taxes. The Philippine tax system currently

has some of the highest income tax rates in this region. Compared to the Philippines’

major ASEAN counterparts, the Philippines’ corporate income tax is the highest at 30%,

a rate that "turns off" foreign investors who prefer to do business in our low-tax

neighbors. One of the problems that resulted from the high income tax rates in the

Philippines is tax evasion. Too many Filipinos can get away with not paying taxes

especially the small taxpayers and as a result, accountants or government personnel

recording or collecting taxes faces several problems.

As cited by Hart (2001),”Taxation is the price which civilized communities

pay for the opportunity of remaining civilized.” Even though citizens were burdened for

paying taxes, it was also a privilege because they got to live in a civilized society

because of the taxes they were paying. President Duterte said (2017), “Not paying taxes

will surely get you in trouble.” Taxes should be paid because not only the citizens will

get into trouble but also the tax collectors, accountants or personnel who are working in

the government will face problems because of tax evasion. Reagan, the 40th U.S.

president, said (2002), “The government exists because of its country’s taxation.” Taxes

are not just money which people are required to pay but it is also considered as the life

and the reason for the government’s existence.

The general objective of the research study was to determine some of the

problems faced by municipal hall accountants in collecting and recording taxes paid by

the obliged citizens.

 3

Specifically, the study aimed to:

a. Determine the solutions applied by the municipal hall accountants in

coping up with the problems.

b. Determine the opinion of the municipal hall accountants in the current

tax system of the Philippines.

The study was descriptive in nature and focused in determining the

problems and causes faced by municipal hall accountants in recording/collecting taxes.

The primary data gathering method that was applied is informal interview of selected

municipal hall accountants. The research or interview was conducted for the whole

month of October 2018. In this research, the problems that was asked were delimited to

those that were related to collecting and recording taxes and to those that were relevant

and contemporary.

The research participants were composed of six (6) municipal hall

accountants from the municipality of Taal and five (5) municipal hall accountants from

the municipality of Lemery. Male and female municipal hall accountants whose age

ranges from 20-60 years old and have at least one month experience of working as a

municipal hall accountant in the selected areas were interviewed.

The findings of the study provided a list of beneficiaries :

To the municipal hall accountants, the findings of the research of the

study will help them cope up with the problems they are facing regarding tax recording

and collection. It will also help them apply solutions to their problems in collecting and

recording of taxes.

To the ABM learners, the findings of the study will serve as an inspiration

and will guide and help them for the future application of the study in real life situations.
 4

To the government, the findings of the study will encourage them in

implementing cost-benefit programs and passing of laws related to tax accounting

problems. This will also help them in developing and improving tax system.

To other researchers, this study will help them in conducting their

researches related to the topic of this research study.

For more understanding of the research, the following terms were defined:

Compensation - Something, typically money, awarded to someone as a

recompense for loss, injury, or suffering.

Financial Accounting – An information system that measures,

processes, and communicates information primarily financial in

nature about identifiable entity for the purpose of making

economic decision.

Gross Domestic Product or GDP -Is the monetary value of all the

finished goods and services produced within a country's borders in

a specific time period. Though GDP is usually calculated on an

annual basis, it can be calculated on a quarterly basis as well.

Tax Evasion - Is the illegal evasion of taxes by individuals, corporation,

and trusts. Tax evasion often entails taxpayers deliberately

misrepresenting the true state of their affairs to the tax authorities

to reduce their tax liability and includes dishonest tax reporting, such

as declaring less income, profits or gains than the amounts actually

earned, or overstating deductions.

Tax Liability - Refers to the amount legally owed to a taxing authority as

 5

the result of a taxable event.

Tax System - A legal system for assessing and collecting taxes.

The following assumptions were made in conducting this research:

1. The problems that will be described by the municipal hall accountants are only

those problems within their municipality.

2. The municipal hall accountants will answer the interview questions in an honest

and candid manner.

3. The problems that will be described by the municipal hall accountants will most

likely to be similar since they work in the same department of tax collecting and

recording.
 6

INPUT PROCESS OUTPUT

 Profile of the Collection and of

accountants data through:  More effective
a. Age tax collecting
b. Sex  Survey and recording.
c. Job experience questionnair
es.  Better tax
 Roles of the system.
accountants  Informal
a. Collector of interview.  Improved job
taxes quality and
b. Recorder of  Review of satisfaction.
taxes related
topics or
 Problems
researches.
encountered

 Nature of the
problems

Figure 1. “: Difficulties Faced by Municipal Hall Accountants in Collecting, Accounting,

and Auditing Taxes in Selected Towns in the Province of Batangas.”

The input or the data collected from the respondents included the municipal

hall accountants’ profile, their age, sex, and job experience. Their roles as municipal ahll

accountants were also asked. The next information obtained were the problems they

encountered regarding tax collecting ang recording and the nature of those problems

they have included.

The process includes the collection and analysis of data through survey

questionnaires, oral interview, and review of related topics or researches.

The output or the outcome of the study includes more effective tax collecting

and recording, better tax system, and improved job quality and satisfaction for the

municipal hall accountants.

 7

REVIEW OF RELATED LITERATURE

In the study “Taxes and Development in the Philippines Towards Enhancing

Domestic Resource Mobilization for Development” conducted by Villanueva (2010), the

three major leaks in the National Government (NG) budget are debt service, tax evasion,

and smuggling. Debt service which means that it is the cash that is required to cover the

repayment of interest and principal on a debt period. Next to debt servicing, the next

biggest drain in the government’s coffers is due to tax leakage.

The National Tax Research Center (NTRC) reported that out of an average of

PhP378 billion potential tax taken from individual, corporate and value added tax, only

two-thirds of PhP260 billion was remitted to the Bureau of Internal Revenue for the

period 1998-2002. Among individuals, the tax gap as percentage of potential income is

highest among businessmen and professionals, averaging 68% or PhP26 billion from

2001-2005. Another major source of revenue losses is rampant smuggling. Physical

smuggling refers to importation of goods that evades inspections of Customs personnel

and payment of tariff duties. Technical smuggling, on the other hand, involves fraud

through the use of incorrect information in bringing the goods through legal points of

entry. Physical smuggling takes place not just in the remote reaches of the archipelago,

but also in principal posts entry.

According to Temanil, et al. (2015), the problems with current system of

taxation are fiscal adequacy, equitability, administrative feasibility, and outdated tax

rates. Despite the reduction of the ratio of debt in relation to the Philippines’ Gross

Domestic Product, the country’s national debt which was PhP2.06 trillion in the year

2000 has tripled in amount to PhP5.995 trillion at the end of 2015. This is a major
 8

problem which was brought about by the country’s high reliance on indirect taxes-taxes

on trade and on domestic sales that had low income elasticities. The Philippines was also

faced with problems of erosion of the tax base and difficulties in administering the

existing tax system. The second principle of a sound taxing system is theoretical justice.

It postulates that a good tax system must be based on taxpayer’s ability to pay in line

with the constitutional mandate that the Congress shall evolve a progressive system of

taxation. The last principle of a sound taxing system is administrative feasibility which

means that the taxes should be capable of being effectively enforced. Virtually all

governments are keen to attract Foreign Direct Investment (FDI). It can generate new

jobs, bring in new technologies, and more generally, promote growth and employment.

Romero (2013) said that income tax exemption which spells out clearly, and

leaves no room for doubt, the extent of the immunity, from a specified kind of tax or

earning which is to be enjoyed by a particular class of persons or corporation. This

exemption from income taxation which arises from implication, either because of the

interpretation of the income tax law resulted to the exclusion from taxation or certain

persons or corporation.

As stated in the study “Study on the Tax Avoidance and Evasion Scheme on the

Transfer of Real Properties” conducted by Pineda (2009), taxes have never been popular

among taxpayers. As much as possible, taxpayers seek ways to minimize taxes by

scrutinizing the tax structure to look for loopholes or defects that will allow them to

reduce their tax liabilities. Although tax avoidance is legally allowed, its occurrence

should be minimized because it undermines the effort of the government to collect more

revenues. In reduction of the tax base in a sale transaction, the most common approach

employed by taxpayers to minimize the tax due to understate the selling price. Another
 9

scheme employed, usually by an individual seller and buyer, to minimize the tax due on

the sale transaction is the preparation of two sets of documents covering the sale

transaction. The first document, unnotarized yet binding between the parties there to

reflects the buy agreed selling price while the second document, to be presented to the

BIR and Registry of Deeds and which becomes the basis in computing the taxes and

other fees due on the sale transaction, contains a low selling price.

Enriquez (2012) stated in “ Comprehensive Tax Reform in the Philippine

Principles, History, and Recommendations” that the income tax can be divided into the

personal income tax and corporate income tax. The personal income tax is the main

taxing instrument to achieve horizontal and vertical equity. This is achieved through a

broad base and a progressive marginal rate scale. Gaps in the tax base lead to a loss of

equity as persons with the same capacity to pay tax may pay significantly different levels

of tax. The main issue today with the corporate tax is the relationship between financial

accounting and tax and, in particular, whether greater alignment is possible with

resultant savings in administrative and compliance costs. Companies are required to

keep financial accounts for the information of their owners, managers, and creditors,

and also future investors and creditors. Tax, on the other hand, is concerned only with

the current year financial performance of companies with a view to collecting a portion

of the current year profit as tax.

In accordance with the study “Tax Avoidance and Tax Evasion” by Rodriguez

(2007) smuggling refers to products illegally traded across borders. Economists mostly

refer to the circumvention of taxes, and prefer to use the terms tax avoidance and tax

evasion. This section defines the activities of tax avoidance and tax evasion that fall into

each category and briefly describes approaches to measuring the extent of both,
 10

drawing heavily from the classification scheme proposed by Joossens and colleagues

(2000). Tax avoidance includes legal activities and purchases in accordance with

customs and tax regulations. The activities included under tax evasion are the illegal

methods of circumventing tobacco taxes, such as the purchase of smuggled and illicit

manufactured tobacco products. Those activities include both small and large quantities

and often, but not always, involve efforts to avoid paying any taxes.

Tax performance is by far most widely research topic in the area of taxation.

According to Manasan (2010), Philippine Institute for Development Studies research

fellow, tax performance refers to the degree at which a country’s tax base or taxable

capacity has been exploited in its effort to mobilize government resources. The most

commonly used incidence of tax performance are the tax ratio and tax effort index. In

allocative effects of taxation, the imposition of taxes in general, and tariff and indirect

taxes, in particular, affects the allocation of productive resources into the various

industrial sectors.

De Leon (2008) said that the General Principles of Philippine Income

Taxation are (1) A citizen of the Philippines residing therein is taxable on all income

derived from sources within and without the Philippines; (2) A non-resident citizen is

taxable only on income derived from sources within the Philippines; (3) An individual

citizen of the Philippines who is working and deriving income from an abroad as an

overseas contract worker is taxable only on income from sources within the Philippines;

and (4) An alien individual, whether a resident or not of the Philippines, is taxable only

on income derived from sources within the Philippines. He also said that income (for tax

purpose) means the gain derived from capital, from labor, or from both combined,

including profits gained from dealings in property or as well as any asset clearly realized
 11

whether earned or not.

In the study “Tax Reform: Creating Real Changes in Society through the

Destructive Power of Taxation” conducted by Cana and Delgado (2006), they stated

here that in the Philippines all aspects of law, including the transitions toward a better

taxing system have always been exercises colored by both the politics and the

economics of administration. They also stated that the Philippines has the highest

corporate income tax systems among the Association of the Southeast Asian Nations

(ASEAN) economies and has the second highest in personal income tax next to Thailand

and Vietnam’s 35%, thus many have said that it is high time for the tax reform.

According to Aldaba (2007), in the last two decades, the Philippines has

witnessed two major episodes of tax policy reforms, first in 1986, and another in 1997.

The 1986 Tax Reform Package (TxRP) was designed to promote a fair, efficient, and

simple tax system. Prior to 1986, the income tax system had two tax schedules for (1)

compensation and income (salaries and wages) category under a gross income scheme

of nine steps from 1% to 35%; and (2) business and professional income on a net basis

of five steps from 5% to 60%. Republic Act 8241 amended Republic Act 7716 or the

Expanded Value Added Tax (EVAT) Law, which was approved in May 1994 to widen the

Value Added Tax base and improve its administration. However, Republic Act 8241 or

the improve VAT Law introduced additional items that are exempted from EVAT which

had the effect of narrowing the tax base.

 12

METHODOLOGY

This study adapted the qualitative type of research which utilized naturalistic

method of inquiry as the research placed great emphasis on the analysis of the

experiences of a group or individual. This research used the phenomenological design

which focused on obtaining descriptions of the subjects’ or respondents’ lived

experiences through written and informal interviews.

The goal of this study was to determine the problems the municipal hall

accountants were facing regarding tax collection or recording and the factors which

caused them.

Oral and written interview of municipal hall accountants in the towns of Taal

and Lemery were conducted by the researchers. Only those available and present

municipal hall accountants of whom six (6) came form Taal and five (5) from Lemery

were interviewed regarding the problems they encountered in collecting and recording

taxes.Some were interviewed orally, while some were given survey questionnaires.

Seven (7) accountants preferred oral interview, while four (4) municipal hall

accountants survey questionnaires. It was collected when they were done answering.

After the interview, the data obtained were collected, collated, tabulated and

analyzed.
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Evaluation of Municipal Hall

Accountants

Asking of Interview
Preference

Oral Interview of Municipal Distribution of Survey

Hall Accountants Who Questionnaires to the Municipal
Preferred Oral Interview Hall Accountants Who Preferred
Written Interview

Detailed Summary of Collection of Survey

Answers Given by the Questionnaires
Municipal Hall Accountants

Results and Discussion

Figure 2. Flowchart of the Methodology

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RESULTS AND DISCUSSION

The data were analyzed and interpreted in response to the problem

raised in the study. In order to have a clear analysis and interpretations, tables and

figures were presented.

Below are the data collected and analyzed which are presented in tabular

form.

1. Demographic Values

Table 1. Frequencies and Percentages of Gender

Gender Frequency Percentage

(n=11) (n=11)
Male 0 0
Female 11 100

Table 1 shows that 100 percent of the eleven (11) municipal hall

accountants were female and none of the municipal hall accountants were male.

Table 2. Frequencies and Percentages of Age

Age Frequency Percentage

(n=11) (n=11)
22-40 6 54.55
41-60 5 45.45

Table 2 shows that among the 11 respondents, six (6) or 54.55 percent

belong to the age bracket of 22-40. It is then followed by the age bracket of 41-60 with

a frequency of five (5) or 45.45 percent.

 15

Table 3. Frequencies and Percentages of Years in Service

Years in Service Frequency Percentage

(n=11) (n=11)
5 years and below 5 45.45
6-10 years 1 9.09
11-15 years 2 18.18
16-20 years 1 9.09
21-25 years 1 9.09
26-30 years 1 9.09

Based on Table 3 , five respondents are in the service for five years and

below. One (1) or 9.09 percent is employed for six to 10 years. It is further shown in

the table that two (2) or 18.18 percent of the respondents have spent 11 to 15 years of

employment in the municipal hall, and lastly, one (1) respondent or 9.09 percent each

for the years of 16 to 20, 21-25, and 26 to 30.

2. Tax Collecting and Recording Problems

Table 4. Number of Municipal Hall Accountants Encountering Problems Regarding Tax

Collecting and Recording

Response Frequency Percentage

(n=11) (n=11)
Yes 11 100
No 0 0

The table presented above showed that all the municipal hall accountants

encountered problems regarding tax recording and collecting.

 16

2.1 Tax Collecting and Recording Problems

Rude Taxpayers

Cancelled or Late Tax Declaration

Late Payment of Taxes Frequency

Non-Payment of Taxes

0 2 4 6 8 10 12
Figure 3. Problems Encountered Regarding Tax Collecting

According to Figure 3, ten (10) municipal hall accountants experienced the

problem of people who do not pay taxes, nine (9) municipal hall accountants

experienced late payment of taxes, five (5) municipal hall accountants indicated that

cancelled or late tax declaration is also problem they face, and six (6) municipal hall

accountants indicated that rude taxpayers are also a problem.

Insufficient Cash for Change

Excess Change Given

Typographical Error
Frequency
Underpayment of Taxes

Non-Payment of Taxes

0 2 4 6 8 10 12
Figure 4. Problems Encountered Regarding Tax Recording

According to Figure 4, ten (10) municipal hall accountants indicated that

non-payment of taxes is also a problem that affects tax recording, eight (8) municipal

hall accountants encountered people who pays lesser amount of taxes than they should

have paid, three (3) municipal hall accountants agreed that typographical error is also a

problem, five (5) municipal hall accountants experienced incorrect or excess change
 17

given to the taxpayers, and seven (7) municipal hall accountants indicated that

insufficient cash for change is also a problem for them.

2.2 Aspects Affected by the Problems

Table 5. Aspects Affected by the Problems Cited by the Municipal Hall

Accountants

Aspects Frequency Percentage

(n=11) (n=11)
Tax Collecting 7 63.64
Tax Recording 4 36.36

It can be noted from the table above that seven (7) municipal hall accountants

with a percentage of 63.64% said that the problems they face mostly affects the aspect

of tax collection while four (4) said that they are mostly affected by the problems in the

aspect of tax recording.

2.3 Solutions

Manual Recording
Patience
Overtime
Regular Updates of the Taxpayers' Registry
Forking out Money Freqency

Cancel of Receipt
Verification of Cancelled TDs
Monthly Notice

0 2 4 6 8 10

Figure 5. Solutions Applied by the Municipal Hall Accountants to Solve Some

Problems Regarding Tax Collecting and Recording

 18

According to Figure 5, eight (8) municipal hall accountants considered the

issuance of monthly notice to the tax payers as a solution for tax evasion, four (4)

municipal hall accountants do a verification of tax declarations of tax payers, five (5)

municipal hall accountants cancel the receipts they give to tax payers for underpaid

taxes, nine (9) municipal hall accountants fork out their money to make up for the

underpaid taxes that was unnoticed, six (6) municipal hall accountants do regular

updates of the taxpayers’ registry to make sure that they record all the transactions they

do correctly, seven (7) municipal hall accountants said overtime is also a solution in

times of several problems arising, five (5) municipal hall accountants said that patience

is also needed for solving tax collecting and recording problems , and lastly,four (4)

municipal hall accountants told that they do manual recording due to the shortage of

computers, equipment or software.

4. Opinion on the Current Tax System

3.1 Ratings on the Tax System

Table 6. Ratings of the Municipal Hall Accountants in the Current Tax

System of the Philippines

Rating Verbal Frequency Percentage

Scale Interpretation
1 Worst
2 Extremely Bad
3 Very Bad
4 Bad
5 Poor
6 Average
7 Good
8 Very Good
9 Excellent
10 Outstanding
(n=11) (n=11)
0 0
0 0
0 0
0 0
3 27.27
1 9.09
1 9.09
4 36.36
1 9.09
1 9.09
 19

It can be noted from the table that on the scale of 1 to 10, among the 11

respondents, three (3) municipal hall accountants or 27.27 percent rated the current

tax system as “Poor.” One (1) municipal hall accountant or 9.09 percent rated the

current tax system as “Average.” It also shows that one (1) or 9.09 percent rated the

tax system “Good.” It is further shown in the table that four (4) municipal hall

accountants rated the tax system “Very Good.” Moreover, one (1) of the municipal hall

accountants or 9.09 percent rated the tax system as “Excellent.” Lastly, one (1)

municipal hall accountant or 9.09 percent rated the tax system as “Outstanding.”

3.2 Improvements

Table 7. Satisfaction of the Municipal Hall Accountants in the Tax System of

the Philippines

Response Frequency Percentage

(n=11) (n=11)
Needs Improvements 9 81.82
Needs No 2 18.18
Improvements

The table above presented shows that nine (9) or 81.82 percent of the eleven

(11) municipal hall accountants said that the current tax system of the Philippines needs

improvements while two (2) or 18.18 percent of the eleven (11) municipal hall

accountants said otherwise.

 20

SUMMARY, CONCLUSION and RECOMMENDATIONS

The study primarily aimed to determine the problems faced by the

municipal hall accountants in collecting and recording taxes in the towns of Taal and

Lemery.

The study adapted the qualitative type of design and a phenomenological

type of study to effectively determine the experiences and problems faced by municipal

hall accountants regarding tax collecting and recording.

In conducting this research study, solutions that were applied in dealing with

the problems given by the respondents were also determined and the respondents’

opinion on the current tax system of the Philippines was known.

Oral and written interview were used in obtaining information and oral

interview was concluded a more effective methodology for gathering data.

The study was primarily composed of eleven (11) female municipal hall

accountants with six (6) or 54.55% between the ages of 22-40 and five (5) or 45.45%

between the ages of 41-60. Five (5) or 45.45 % of the respondents have worked as

municipal hall accountants five years and below, one (1) or 9.09% has worked between

6-10 years, two (2) or 18.18% have worked between 11-15 years, and lastly, one

respondent (1) or 9.09% for each of the years between 16-20 , 21-25, and 26-30.

All the respondents indicated that they have experienced problems

regarding tax collecting and recording. Of the problems they have enumerated, tax

evasion or non-payment of taxes was the most prevalent with ten (10) indicated it as a

problem that they are facing, second was the late payment of taxes with nine (9)
 21

respondents experiencing it, followed by the underpayment of taxes with eight (8)

respondents experiencing it, next was the insufficient cash for change with seven (7)

respondents encountering it then the rude tax payers with six (6) respondents

admitting those were also a problem, followed by the excess change given and cancelled

or late tax declaration with five (5) respondents facing those problems, and lastly, the

problem of typographical error with only three (3) respondents facing it.

Seven (7) or 63.64% of the eleven (11) respondents said that the problems

highly affected the aspect of tax collecting while four (4) or 36.36 % said that tax

recording is the aspect that was mostly affected.

Solutions applied were also enumerated with forking out money to make up

for the underpaid taxes as the most applied with the frequency of nine (9) respondents,

second is the issuance of monthly notice with eight (8) respondents applying it, third is

the extended working hours or overtime with seven (7) respondents indicating it, next is

the regular update of records with six (6) respondents doing it, after that is the

cancelling of receipt with five (5) respondents applying it, and lastly. the manual

recording and verification of cancelled tax declarations with both four (4) respondents

saying that they’re still applying it up to the present.

Three (3) or 27.27% of the eleven (11) respondents rated the current tax

system of the Philippines as “Poor,” one (1) respondent or 9.09% rated the current tax

system as “Average,” it also showed that one (1) or 9.09 percent rated the tax system

as “Good”, four (4) municipal hall accountants or 36.36% rated the tax system “Very

Good,” one (1) of the municipal hall accountants or 9.09 percent rated the tax system as

“Excellent,” and lastly, one (1) respondent or 9.09% rated the tax system as

“Outstanding.”
 22

In summary, nine (9) respondents or 81.82% responded that the current tax

system in the Philippines still needs improvement while two (2) or 18.18% responded

that improvements in the current tax system is not necessary.

The following recommendations were formulated based on the findings of

this study:

A. For the researchers :

1. Conduct the research study in other municipalities.

2. Include the taxpayers and their opinions on the current tax system as a

subject in the research study.

3. Increase the number of respondents for the next research study similar to the

current research topic.

4. Adapt oral interview as the primary source of gathering data.

5. Determine the source or the specific entity on which the specific problem arises or

come from.

B. For the tax collectors :

1. Simple segmentation of taxpayers.

2. Use BIR information drive to avoid late tax declaration and payments.

3. Introduce account managers to oversee large taxpayers.

4. Inspire the use of electronic channels for simple transactions such as internet,

mobile -payment options and ATMs.

5. Simplify tax system to ancourage formalization.

 23

Literature Cited

Aldemante, Ronny (2018) Tax Avoidance And Evasion Schemes from

https://publications.iarc.fr/_publications/media/download/4027/2031f1e35cef94c
a023d1010f5c669e84a96dd62.pdf

Rodriguez (2016) Tax Avoidance and Tax Evasion from

https://publications.iarc.fr/_publications/media/download/4027/2031f1e35cef94ca
023d1010f5c669e84a96dd62.pdf

Burton, Mark (n.d) Responsive Regulation and the Uncertainty of Tax Law from
http://www5.austlii.edu.au/au/journals/eJTR/2007/4.html

Cana, Aldrin Jose (2005)Tax Reform: Creating Real Changes in Society through the
Destructive Power of Taxation

Delgado, Lorenzo (2005)Tax Reform: Creating Real Changes in Society through the
Destructive Power of Taxation

Enriquez, Manylyn E. (2009) Comprehensive Tax Reform in the Philippine Principles,

History, and Recommendations

Pineda, Ernasto L. (2007) Study on the Tax Avoidance and Evasion Scheme on the
Transfer of Real Properties

Villanueva, Bernadette D. (2007) Taxes and Development in the Philippines Towards

Enhancing Domestic Resource Mobilization for Development
 24

APPENDIX A

Letter of Request
Fame Academy of Science and Technology
Calle A. Delas Alas, Taal, Batangas

October 29, 2018

Dear Respondent:

We are Grade 11-Pasteur of Fame Academy of Science and Technology who are
conducting a study entitled “DIFFICULTIES FACED BY MUNICPIAL HALL ACCOUNTANTS
IN COLLECTING, ACCOUNTING, AND AUDITING TAXES IN SELECTED TOWNS IN THE
PROVINCE OF BATANGAS”

In this connection, we have prepared survey questionnaire from which data will be
collected and analyzed. We would like to request you to be one of the respondents in
the study.

Your honest responses will greatly make our research a success. Rest assured that your
anonymity and the information you will give will be treated with the strictest
confidentiality.

Thank you very much for your very kind response to our request and if you are
interested, we will supply you with the results of the study.

Truly yours,

JOHN HOBB P. ATIENZA FRENZY M. RODRIGUEZ

AMIEL D. CATAPANG JULIANNE M. NICOLE PEREN

AREND GAMALIEL D. CABRERA

Grade 11- Pasteur

NOTED:

LERMA M. DIMAANDAL
Instruction Specialist, Research I
 25

APPENDIX B

Letter to the Panelists

Fame Academy of Science and Technology
Calle A. Delas Alas, Taal, Batangas

ROXANNE MAE ADAMAT

Instruction Specialist, Accounting
Fame Academy of Science and Technology
Calle A. Delas Alas, Taal, Batangas

Dear Ms. Adamat:

In fulfillment of the requirements in Research 1, our group conducted a research study

entitled “Difficulties Faced by Municipal Hall Accountants in Collecting, Accounting, And
Auditing Taxes In Selected Areas In the Province Of Batangas.”

In this regard, may we request you to be one of the panelists in the defense of our
research study at Pasteur Room on December 5,2018,11:15 A.M.-12:15 P.M. We believe
that your insights and viewpoints will be very valuable.Your positive response to our
request would be highly appreciated.

Thank you!

Truly yours,

Atienza, John Hobb Padilla Peren, Julianne Nicole

Cabrera, Arend Gamaliel Rodriguez, Frenzy

Catapang, Amiel

Student Researchers, Grade 11-Pasteur

NOTED:

LERMA M. DIMAANDAL
Instruction Specialist,Research
 26

APPENDIX C

Parent’s Permit
Fame Academy of Science and Technology
Calle A. Delas Alas, Taal, Batangas

TO WHOM THIS MAY CONCERN:

I/We are allowing our child

(Name of Student and Year & Section)

to on

(Activity) (Date andTime)

in . .

(Place)

SCHOOL WAIVER:

However, I would not hold the school (FAST) responsible for any fortuitous event
that may happen beyond control. I/We are assured that all precautions will be
observed for the safety of our child.
 27

APPENDIX D

Survey Questionnaire
Fame Academy of Science and Technology
Calle A. Delas Alas, Taal, Batangas

Name (optional):

Age :

Gender :

1. How long have you been working as a tas collector/recorder?

2. As a tax collector/recorder, have you encountered problems regarding tax

collecting/recording? If yes, kindly answer the following questions:

a. Enumerate at least 5 different problems you have encountered or still

encountering regarding tax collecting/recording?

b. In what aspect does these problems affect you? Is it in tax collecting, tax
recording, or tax auditing?
 28

c. What solutions do you apply in dealing with these problems?

d. On the scale of 1-10, how would you rate the tax system of the Philippines? Does
it need to be improved or not?