THE IMPACT OF TAXATION ON BUSINESS DECISION

DURING THIS PANDEMIC

Submitted by:

Anilao, Lylanie

Delos Reyes, Angelie Javier

Enovejas, Emiline Diana

Pancito, Carla P.

Pascual, Ruben III

Submitted to:

Mr. John Anthony Labay

TITLE: THE IMPACT OF TAXATION ON BUSINESS DECISION DURING THIS

PANDEMIC.

I. MAIN PROBLEM

This study aims to know the Impact of Taxation on Business Decision during this pandemic.

II. SPECIFIC PROBLEMS

Specifically, it is sought answers to the following questions:

1. Does taxation have an impact on business decisions especially when a pandemic is

currently happening right now?

2. Is there any difference on the impact of taxation on business decision before the

pandemic and during the pandemic? If yes, what are those?

3. What are the major problems that the company usually encounter regarding the

impact of taxation on their decision?

4. How businesses solve these problems or how did they handled the impact of taxation

in able for them to decide properly?

5. Based on the information and data gathered from the respondents, what proposed

decision or plan may be develop?

III. RATIONALE/BACKGROUND/IMPORTANCE

COVID - 19 is an infection disease which first emerged in late 2019 - early 2020. The

pandemic exacted heavily to all global public health.

 ECQ was imposed in order to further limit the spread of COVID – 19 pandemic.

However, the ECQ has negatively impacted the Philippine tax system as it has prompted the

government through its various agencies, to release issuances and measures to extend tax

deadlines. Furthermore, many business also affected by this pandemic. Some entrepreneurs may

also consider the taxation on business decision. Regarding about the Tax Collection, the month

of April considered as the tax month here in the Philippines, but because of the pandemic, many

business experience difficulty on submitting that is why it would not be surprise to see a bigger

shortfall in the 2020 second quarter tax collection.

At all levels, taxation influence the decision of businesses in their financing, investment

and dividend decisions. This time of pandemic, government is the one must handle this situation

and most governmental activities must be financed by taxation that is why the primary purpose

of taxation is to raise revenue to meet huge public expenditure. For businesses, they pay taxes for

them to become formally registered and to achieve their financial and business goal.