Paul Brazina

Dean of La Salle University's School of Business, on shaming companies into paying their taxes

by Tom Namako

Before City Council broke for the summer, Councilwoman Maria Quiñones-Sanchez proposed a bill that would require city businesses (those not publicly traded) to disclose net income and city tax bills. The measure, she said, would help ensure that companies pay their fair share in taxes; critics said it would discourage commerce. As the bill sits in committee until September, City Paper caught up with Paul Brazina, dean of La Salle University's School of Business, to discuss its possible impact.

City Paper: If the bill were to pass as-is, what could the overall effect be?

Paul Brazina: In general, I think a company's tax records should be a matter between the taxpayer and the city. It's not something that should be disclosed in any type of public forum. City Council passes laws, and the Revenue Department interprets and enforces the tax laws. The system that's currently in place should be adequate as long as the revenue department is aggressive enough.

CP: I always thought the tax man was all-knowing. How could a company skirt the tax laws?

PB: The business taxes are based on a number of factors. One is gross receipts in the city. And that may be open for interpretation as to where the revenue is recorded. For example, if a company has multiple locations, they may decide to record revenue out of a lower-tax location outside Philadelphia. That's a compliance issue. The Department of Revenue should see where the revenue was earned and not recorded.

CP: Speaking of equity, isn't this a case of holding businesses accountable? They have lawyers, accountants and the resources to find ways to reduce their tax burden.

PB: I agree. Businesses do have to be held to a high standard, based on tax law and compliance with the city revenue department. It shouldn't be based on a public shaming of companies.