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Unformatted text preview: ructure implies that as the business real income increases, it gets charged a
lower rate (see, Appendix Table 3). The regressive tax structure is prescribed in the LGC. In
addition to the questions concerning equity, the tax revenue is less elastic than what it would
be under a flat or a progressive rate structure. 4.6 Recommendations Short Term
e Improving means ofAssessing Gross Receipts: The city needs to make concerted efforts to
improve assessment of the gross receipts and the under reporting. Larger establishments
should provide accounts while limited manual assessments can be carried out for smaller
establishments so that the collectors can make informed decisions. Efforts can also be
made to coordinate with the regional Bureau of Internal Revenue (BIR) office located in
the City. The BIR manager fully acknowledged the potential benefits of co-operating
with the City. The City could insist on having the business income tax declaration, which
would not only create an enforcement mechanism for the BIR,...
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- Winter '13