EFFECTS OF RUN AGAINST TAX EVADERS PROGRAM TO THE TAX PRACTICES AND TAX COMPLIANCE OF SELECTED BUSINESSES IN LUCENA CITY

Tax evasion issue is a major problem in revenue generation. This research investigated the effects of Run Against Tax Evaders (RATE) Program of the BIR to the tax practices and tax compliance of selected business operators in Lucena City. The main objectives of the study were to describe the general tax practices and tax compliance of the businesses and to describe how the businesses execute their general practices attributable to RATE program. The study mostly adopted a quantitative research design. Data was collected primarily through survey questionnaires distributed to selected small and medium business operators in Lucena City. The results indicated that the business operators perceived a positive effect of RATE on their tax practices and compliance. It is therefore recommended that the BIR should implement more programs like RATE for maximum generation and to improve taxpayers’ compliance. Also the agency should implement more tax education programs so that the tax payers may become more aware of their responsibility and the sanctions to be imposed if they were not compliant with tax laws. Therefore, the taxpayers should immerse themselves in tax education programs provided by the government to make them fully aware of their duties and to prevent them to commit violations against the prevailing tax laws.