TAX REFORM FOR ACCELERATION AND INCLUSION (TRAIN)

LAW: ITS AWARENESS AND IMPACT AMONG

THE BUSINESSES IN KALIBO

A Research Paper Presented to the Faculty and Staff of

Regional Science High School for Region VI

Senior High School Department

Old Buswang, Kalibo, Aklan

In Fulfillment of the Requirements

In Practical Research II and Research Report

by

Shania Faye S. Imperial

Lucky Mae B. Daypuyart

Jan Joan C. Ilio

Rica Dana E. Ingeniero

Claire Danes D. Sioco

Grade XII- ABM

April 2019

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 APPROVAL SHEET

This research title “Tax Reform for Acceleration and Inclusion (TRAIN) Law: Its
Awareness and Impact among the Businesses in Kalibo,” in partial fulfillment of the
requirements for the practical research II and research report is hereby recommended for
acceptance and approval for oral defense conducted by:

Shania Faye S. Imperial, Lucky Mae B. Daypuyart, Jan Joan C. Ilio,

Rica Dana E. Ingeniero, Claire Danes D. Sioco

Approved by the Research Committee:

VICTOR I. SAMONTE
Chairperson

MERLYN S. ISMAEL RADEMA I. CAHILIG

Member Member

MARIA FE A. RICAMONTE
English Critique

MIKKO JAN D. LOPEZ, MAT

Research Adviser

Accepted and approved in partial fulfillment of the requirements for the Senior
High School Program of Regional Science High School for Region VI.

_____________________ MARIA SANTIA A. ARBOLEDA

Date School Principal II

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 ACKNOWLEDGEMENT

Throughout the time working on this study and now that it is already structured, we
would like to extend our warmest gratitude to the people who never stopped in assisting in
this paper until it was accomplished, for without them we would not have achieved these
great results:

Our School Principal II, Mrs. Maria Santia A. Arboleda, for giving us the full
permission to perform this research study;

Our Research Report Adviser, Mr. Mikko Jan D. Lopez, for the unwavering support
and presence to teach us throughout this study as well as for the efforts in editing this paper;

Our Panelists, Mrs. Merlyn S. Ismael, Mr. Victor I. Samonte and Mrs. Radema I.
Cahilig, for the recommendations and comments which helped in improving and furnishing
the contents of this paper;

The Validators who willingly accepted our paper for countless editing and for
sharing their time and expertise on the subject;

The Parents for their guidance, encouragement and financial support needed to
fulfill this study;

And last, but not least, to all whom we have failed to mention but lent their helping
hand in all possible ways;

Above all, to the Almighty God, for His divine providence, for giving us strength,
solution and valuable guidance in facing the problems we have encountered throughout
this academic endeavor.

Shania Faye S. Imperial

Lucky Mae B. Daypuyart
Jan Joan C. Ilio
Rica Dana E. Ingeniero
Claire Danes D. Sioco
April, 2019
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“Tax Reform for Acceleration and Inclusion (TRAIN) Law: Its Awareness and Impact
among the Businesses in Kalibo,” A Research Paper for Practical Research II and Research
Report, Regional Science High School for Region VI, Senior High School, Old Buswang,
Kalibo, Aklan

Abstract

This descriptive-survey research entitled “Tax Reform for Acceleration and Inclusion
(TRAIN) Law: Its Awareness and Impact among the Businesses in Kalibo” was conducted
to determine the impact of the level of awareness about the Tax Reform for Acceleration
and Inclusion Law to the cost, sales, and revenue of the businesses in Kalibo. The data
were gathered through giving out researchers-made questionnaires to 121 business owners
in Kalibo, who merchandises sugar-sweetened beverages, petroleum, and cigarettes. The
respondents were selected through simple random sampling. The level of awareness about
the TRAIN Law was the independent variable used in the study and the impact to the
businesses was the dependent variable. The data gathered were analyzed through Statistical
Package for Social Science. The statistical tools used were frequency count, percentage,
mean, standard deviation, and Analysis of Variance. Results showed that the level of
awareness of the business owners towards TRAIN Law is “highly aware”. On the other
hand, the obtained results in the level of impact of awareness of the implementation of
TRAIN Law to the businesses in Kalibo in terms of cost, sales, and revenue is “highly
evident”. Furthermore, the level of awareness is significantly different with its impact on
cost. Results also showed that there is no significant difference about the awareness of
TRAIN Law and its impact to the businesses in Kalibo in terms of sales and revenue. It can
be concluded that the level of awareness towards the TRAIN has a significant impact to
the cost of goods, however, otherwise to the sales and revenue.

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 Table of Contents

Chapter Page

1 INTRODUCTION OF THE STUDY 1

Background of the Framework 1

Statement of the Problem 5

Significance of the Study 5

Definition of terms 7

Delimitations of the Study 8

2 REVIEW OF RELATED LITERATURE 9

Tax Awareness and the Tax Reform 9

for Acceleration and Inclusion (TRAIN) Law

Impact of TRAIN Law to the Cost, Sales 14

and Revenue of the Business

Synthesis 19

3 RESEARCH DESIGN AND METHODOLOGY 22

Research Design 22

Methods 23

Participants 23

Data Gathering Instrument 25

Data Gathering Procedure 27

Statistical Data Analysis Procedure 27

4 RESULTS AND DISCUSSIONS 29

Descriptive Data Analysis 29

Inferential Data Analysis 34

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5 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 38

Summary of the Problems and the Findings 38

Conclusions 39

Recommendations 40

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 List of Tables

Table Page

1 The population of businesses according 23

to the product(s) they sell

2 Distribution of Businesses 24

3 Mean, Standard Deviation, and Descriptions 30

of Level of Awareness of the business
owners towards the implementation of
TRAIN Law in terms of Excise Tax on
Types of Goods Sold

4 Mean, Standard Deviation, and Descriptions 33

of Level of Impact of Awareness on the
implementation of TRAIN Law to the
businesses in Kalibo in terms of Cost,
Revenue, and Sales

5 Difference between the Level of Awareness 35

and its Impact on Cost, Revenue, and Sales

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 List of Figures

Figure Page
1 A schematic diagram, showing the 4
relationship of the level of awareness
about the TRAIN Law to the Businesses in Kalibo

2 Distributing of research questionnaires to respondents 90

3 Data gathering process of the researchers 90

4 The panel for the Pre-oral Defense led by 90

Mr. Victor I. Samonte (second from the left)

5 Researchers’ proposal defense 90

6 The researchers together with the panelists 90

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 List of Appendixes

Appendix Page

A Communication Letter 52

B Validation Letters 54

C Request Letter to DTI 58

D Request Letter to LGU 60

E Validation Form 62

F Research Questionnaire 72

G Statistical Data Analyses 78

H Documentation 89

I Curriculum Vitae 91

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