As we are slowly (but surely) moving into the new era of fiscalization and tax collection, it is only imminent that a lot of changes will be coming along. What used to be of no importance only a decade ago, represents a steppingstone for tax collection – handing out fiscal receipts.
What Is the Ultimate Goal of CCA?
Customer Compliance Award program certainly didn’t come out of anywhere, it is a result of a decade worth nerve-wracking and trying to find a way how to stop tax evaders. The ultimate point of the receipt is to protect the buyers’ rights, and that was its main goal ever since the beginning. By receiving the receipt, a customer knows exactly what they spent their money on, if there was a potential mistake in numbers, and if there were anything to be claimed for income tax refund.
However, as ambitious as this goal was in the beginning, not many countries went the same path. In developed economies, receiving a receipt regardless of if one’s purchasing goods or services, is mandatory. Moreover, customers will usually ask for one if by any chance they aren’t handed out. Unfortunately, this practice is not so common in the developing countries. To make things even worse, recent studies shows that receipt started to lose its worth in the 1st world economies too as campaign to go paperless is waged intensively. It had started to become only a worthless piece of paper that people would take only out of habit, but most recently even that’s affected by the risk of Covid-19 virus transfer through paper.
So, in most countries we find that culturally people don’t ask for receipts, as asking for a receipt is often considered rude and as an act of mistrust. So, how can this mindset be changed? Surely only explaining to people why they should request a receipt won’t be enough?
And that’s where the CCA program comes in.
CCA Is Making the Receipt Valuable
The whole idea of the CCA program is to make receipts more valuable to the consumers, at least psychologically. This program has for a plan to create a type of customer lottery, where requesting and scanning a receipt can be rewarded with a pricy award.
The new receipts in the countries where TaxCore operates come with a QR code at the bottom; the purpose of it is to be scanned. By scanning it, the customer gets the right to take part in a lottery where they can win anything from a toaster to a car – depending on the sponsor.
The good side of it all is that customers become Tax Authority helpers. But note that this feature is TaxCore specific: if every receipt is scanned, it means it is double-checked and that the authority will have the full insight if a business is evading taxes or committing TAX fraud in any way. Additionally, customers are protected too, as they can even report a receipt they deem isn’t right. Reporting an invalid receipt also offers a chance to enter the lottery. This means that the customer’s compliance is greatly rewarded.
In Fiji, this practice is already proving to work. The businesses would often get into a blame game with consumers, often using tactics such as blaming them for mistrust or for not being ecology sensitive. This practice seems to be meeting its end.
What’s in It for Businesses?
Although at first sight it may seem like only the Tax Authority and customers are benefitting from the CCA, that is not entirely the case. Businesses that decide to take part in this program see a great income in revenue.
By taking part in the program, businesses are actually promoting themselves and are putting their names out there – on the billboards and on the TV. They can base their entire marketing campaigns around CCA, making sure that the population knows about them and their efforts. This brings customers into their stores, where they can offer multiple discounts on multiple products on their own initiative.
The CCA program has been carefully crafted by people with great minds and ideas. Its point is to give something to all three sides (Tax Authority, customers, and businesses alike) while providing a perfect system at the same time.
Probably what’s most important among all this is that the local population is becoming aware of the new fiscal system. It is crucial that once a country implements a modern and digitalized fiscal and tax collection systems, the population is aware of it. This guarantees the protection of consumers’ rights, which further expands to customers regularly reporting any type of fiscal receipt discrepancies.
The CCA program is one of the best inventions and tools to help local tax authorities in their war against the stubborn grey economy. Once fully implemented, it nearly wipes out TAX fraud and potential consumer fraud.