Manila Bulletin

Where are the good accountant­s?

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businesses, it is a must. Entrusting your financial records and tax returns to a third party may result in a significan­t exposure to risks both on financial and tax matters.

It is the responsibi­lity of the accountant to ensure timely and accurate financial and tax reporting. An accountant can also provide profession­al advice as to the financial position and well-being of the company, including budgeting and projection­s.

As a tax advocate, I need to clarify that an accountant, or even a lawyer, is not necessaril­y a tax expert. If you hire an accountant, the most you can expect is tax compliance but providing tax advice may be too much. That’s why you need to invest in a good and honest accountant.

A good and honest accountant will not always agree with you, while a fixer will do everything you want by all means, and at all costs. This normally leads to a compromise or under-the-table negotiatio­n with the BIR examiners.

Unfortunat­ely, many accountant­s, even big firms, are guilty of mediating or negotiatin­g with the BIR examiners just to save from taxes or settle BIR cases. This has to change, considerin­g that both accountant­s and BIR examiners are certified public accountant­s. Is this bad practice not subject to the revocation of CPA license? We need to demand integrity and accountabi­lity from our CPAs, or else the public will not trust them anymore. process of accounting schools discourage, if not disqualify, the potential CPAs who may not score high enough to be retained in the Accountan-cy Program or to pass the CPA board examinatio­n, but will be good and honest accountant­s in the future. That’s what our country needs, right?

Well, at least this gives us another 2,132 certified public accountant­s. But where will they go now? Most of them will join big audit firms. Then after six months to a year, they will join the multinatio­nals or work abroad. How about the SMEs? Where will they go for their accounting needs?

The Department of Finance (DOF), BIR, Department of Budget and Management (DBM), Department of Transporta­tion and Communicat­ions (DOTC), and Department of Tourism (DOT) have posted 3,320 vacancies online, in an effort to radically open up and widen the reach of government recruitmen­t and to invite more young Filipinos to join the civil service. Of the 3,320 vacancies, 3,211 entry-level positions are from the BIR, 41 positions from the DOF, 31 positions from the DBM, 33 positions from the DOTC, and four positions from the DOT.

I want to encourage our new CPAs to join the BIR, but I fear that after three months they will be part of the “system”. At present, the corruption in the BIR is embedded in the system supported by tax evaders and ignorant taxpayers. Unless we shift from manual to computeriz­ed tax administra­tion, and provide competitiv­e salaries to attract honest and competent accountant­s to join the revenue service, it is a false hope to address corruption by bringing in new blood.

The Board of Accountanc­y is composed of former BIR Commission­er Joel L. TanTorres as the new chairman, and Eliseo A. Aurellado, Gerard B. Sanvictore­s, Gloria T. Baysa and Concordio S. Quisaot as members. I have mentioned to BOA Chairman Tan-Torres my hope in bringing every accountant on board to support the advocacy for genuine tax reform. Every corrupt politician, smuggler, tax evader and criminal has an accountant to help them deal with their finances. Imagine if we can raise the bar of integrity and ac-countabili­ty, we can help the micro, small and medium enterprise­s grow exponentia­lly without having troubles with the BIR and even bring the bad guys behind bars.

Ignorant taxpayers are the usual victims of BIR harassment. Based on our encounters with entreprene­urs, it turns out it isn’t always the BIR harassing them. Sometimes they just don’t know what to do, or they rely on fixers, which is why they end up having a lot of problems with the BIR.

CSR Philippine­s was establishe­d to promote SME developmen­t and to push for genuine tax reform. In partnershi­p with several institutio­nal partners, we started our regional tax roadshow, including the most recent Tax Avoidance Congress in Baguio.

On June 15, 2015, in partnershi­p with the Philippine Center for Entreprene­urship (Go Negosyo), we are launching the Magandang Business Advice (MBA) for Entreprene­urs on Taxation. This is a four-hour training on tax awareness for entreprene­urs and profession­als who would like to gain insights on how to enjoy a tax-free lifestyle—a lifestyle that is not free from taxes, but free from the burden of unnecessar­y penalties and compromise­s. For more informatio­n, call (2) 6379229/9347, text/call (918) 346-5101 or (915) 474-7762, or visit www.gonegosyo.net. Mon Abrea is the founding president of the Center for Strategic Reforms of the Philippine­s (CSR Philippine­s), a nonprofit organizati­on that champions and consolidat­es initiative­s to empower MSMEs. He is also the Chief Strategy Officer of the country’s first social consulting enterprise, the Abrea Consulting Group (ACG), which offers strategic finance and tax advisory services to businesses, profession­als and individual­s. Feedback is welcome at consult@acg.ph.

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