Sun.Star Davao

‘Tax health checkup’ a must, expert says

-

With this year's BIR collection target at P2.3 trillion, 14% higher than the previous year's goal, expect the BIR to intensify its tax enforcemen­t and collection drive.

Fret no more as there are ways to avoid the adverse consequenc­es of a BIR scrutiny.

Lawyer OIivier Aznar, partner at P&A Grant Thornton, one of the top 5 auditing and profession­al services firms in the country, prescribes four quick pointers taxpayers may adopt:

1. Simply comply. Philippine taxation is complex and companies need to know by heart every deadline they must meet or else face staggering amounts of penalties and surcharges for late filing or payment.

2. Keep abreast. Visit the BIR website regularly and attend tax seminars.

“Just recently, we learned that the President signed into law Republic Act No. 11213 which is about tax amnesty, and there were provisions in the Congress' version that were vetoed by the President,” Aznar added.

3. Engage experts. Some accountant­s specialize in financial audit, some in tax, and some in other fields. Financial reporting standards and BIR rules are not the same, Aznar said. Having tax experts on your side extends your ability to anticipate and monitor upcoming tax laws that may impact your business.

4. Maintain complete records. Don't shred those old tax documents just yet. Remember that the BIR has its right to examine the taxpayers within a prescripti­on period./

Newspapers in English

Newspapers from Philippines