Prevention is better than cure.
This has been said many, many times already. The Duterte administration is now setting its eyes on a new battlefield – one that concerns taxpayers, or a more specific target, Tax Evaders.
Nobody wants to wake up one morning to answer a Police Officer’s inquiries, pleading to find it in your heart to acknowledge the wrongs you may or may not willfully committed. You then realized that there was an audit conducted earlier and paid no specific attention to it whatsoever. A growing list of tax evaders makes it to the newspapers, radio stations, tv broadcast and even online articles with minute detail to spare – all for the purpose of humiliating the businessman. A possible arrest then comes in order when the evidence points towards ‘guilty as charged’. Criminal prosecution shows up and presents a case.
This may be the experiences of those included in the President’s latest list of enemies, the growing Tax Evaders list.
What should you do in order to prevent or avoid being included on the ‘list’?, one might ask. For starters, one must examine the accounting method the company employs whenever dealing with document preparation as required by the government – the BIR. The law requires documents in conformity with Tax Accounting as defined by the Tax Code and its implementing rules.
Take Financial Accounting, for example. Its purpose is to protect investor’s and creditor’s interests. The same cannot be said for tax accounting. Tax Accounting rules promote freedom form surcharges, interest and civil liabilities. This allows you to discourage abusive officers from engaging and pursuing harmful relationships that may cost you a fortune or worse, your livelihood and freedom.
Tax Accounting leaves no room for an assessment with deficiencies, deep scrutiny will only prove extinguishment of obligations.
This being said, there are ways to detect whether you are currently executing actions that may damage you or your company’s reputation – either you are aware of it or not. If you are interested in knowing more about these ‘fingerprints’ that may lead you into an uncomfortable situation, feel free to join the lecture-seminar-workshop here:
This session will be headed by the Philippine’s Tax Guru: Emelino T Maestro. He will share with you the details which makes a taxpayer a plausible target for audit, what they look for in your documents and actions that would result in a red flag. Limited seats and for a limited time only. Remember, the cure will be very costly if you do not act now.