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Why is it important for entrepreneurs to remit the proper taxes?

Andrew Tan group to pay P12 billion worth of taxes
By Carlo P. Mallo |

Recently, the Andrew Tan-led Alliance Global Group Inc. and its companies announced that they are remitting more than P12 billion in taxes and fees to the national government for 2011.

The amount will cover the group’s income tax, net value added tax, excise tax, custom duties, franchise fees and other remittances to the national government and government-owned corporations and agencies.

Remittances will come from members of the Alliance Global group such as Travellers International Hotel Group Inc., Emperador Distillers Inc., Golden Arches Development Corp., Megaworld Corp., Empire East Land Holdings Inc., Suntrust Properties Inc., and the Tan-owned Consolidated Distillers of the Far East Inc.

Yes, P12 billion is a big amount, but what is the importance of remitting the proper taxes to the government? While it is tempting to just tamper your books and remit lesser tax to the government, Entrepreneur.com.ph listed down these three reasons why every entrepreneur should pay the government the proper taxes.

1. Nation building

“Our remittances to the government show that we are committed not only to the highest standards of corporate governance and citizenship but also to nation building,” Alliance Global Chief Finance Officer Dina Inting said. After all, the government relies on the taxes that every Filipino pays, whether a company or an individual, to provide basic services, build bridges and flyovers, and even to repair the corner of EDSA and Ayala Avenue.

2. Giveback

Alliance Global, one of the largest conglomerates in the Philippines, is also furthering its efforts to drive national progress through the country’s fast-growing tourism and BPO office industries. Aside from providing employment, a number of sites developed by Alliance Global for BPO’s have been declared as PEZA accredited sites, meaning they enjoy certain perks such as lower or zero taxes for a couple of years. By paying the proper taxes, you are actually encouraging the government to give more tax breaks to businesses bringing in investment.

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3. Encourages investments

Believe it or not, by paying the proper taxes, more investments will come into the country. If the government has more funds to develop roads, build better airports, and better infrastructure, the investments will come pouring in. Over the next five years, the Alliance Global group will have built 5,500 rooms in 16 hotels in Metro Manila and strategic provincial areas. Alliance Global’s hotel projects are centrally located in master-planned tourism estates.

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