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Unformatted text preview: ious year. This further creates a problem of estimating collection
efficiency of the business tax, since the ratio of collection to collectibles cannot be accurately
determined due to the under reporting of the base.
Lack of Staff and Training
Checking for account payments and correcting for under-reporting is dependent on
the proficiency of the collectors. There are only three inspectors for the city, with
approximately 4000 establishments. The enforcement of business tax also suffers due to the
scope of tasks undertaken by the business office. Besides collecting and enforcing tax on
gross receipts, the office is also responsible for collecting taxes on fishing vessels and bicycles, which constitute only 1 to 2 percent of the total business tax collections, but use
considerable time and resources.
Lack ofAdequate Management Structure
Unlike other departments (Property Assessment, Treasury, Budget, Social) of the
City, the Government Business Tax Department lacks direct management control and tends
to get neglected in daily supervision. The tax has to be paid before annual renewal of the
mayor's permit, a fee for the privilege of engaging in business, occupation and...
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- Winter '13