Where are the good accountants?
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.