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TAXPIRIN aims to help taxpayers to prepare and submit error‐free tax returns, and accordingly,
comply with BIR regulations, thus, prevents BIR audit and eliminates tax assessments.
SECRETS TO PREVENT BIR AUDIT
AND ELIMINATE TAX ASSESSMENTS
By: www.taxpirin.com
and www.philtaxwindow.com
TAXPIRIN aims to help taxpayers to prepare and submit error‐free tax returns, and accordingly,
comply with BIR regulations, thus, prevents BIR audit and eliminates tax assessments.
SECRETS TO PREVENT BIR AUDIT
AND ELIMINATE TAX ASSESSMENTS
We cannot avoid tax, but we can avoid tax audit. Based on experience of tax
consultants, 99% of taxpayers audited by the BIR have tax
findings/assessments.
Aside from the taxpayers’ regular voluntary tax remittances, the Bureau of
Internal Revenue’s (BIR) generates revenue through collections coming
from tax assessments. Thus, it is not surprising that the BIR is
strenghtening its audit programs to aggressively conduct audits of
taxpayers’ records or run after possible tax evaders. The pressure is
continuously on for all taxpayers.
It is common that the BIR’s initial assessment would be P200 million,
P100 million, or P50 Million. Even small companies would initially get
P2 million tax assessment for just one taxable year! That’s why,
accountants would think that their bosses will fire them right away upon
receipt of initial tax findings. On the other hand, owners would be
discouraged to grow their businesses because the initial tax assessments
are sometimes greater than their Companies’ networth.
Taxpayers have fear in dealing with the
BIR officers because of significant tax
assessments. Others even hate the BIR
officers for inflicting so much anxiety and
sleepless nights to the owners and
accountants. Fear no more. The secrets in
removing your fear and worries, how to
reduce or even eliminate tax assessments,
and even how to avoid tax audit will be
discussed.
There are three (3) main secrets in
preventing the BIR audit, and winning
your BIR audit, should it happen.. The acronym is PBA which stands for
(1st) Be Prepared, (2nd) Build Good Relationships, and (3rd) Automate.
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SECRET No. 1
BE PREPARED
Most taxpayers are not prepared for the Audit of BIR. Once the taxpayers
or the taxpayers’ accountants have filed the tax returns, the same are filed
in the cabinets or storage boxes hoping that BIR will not knock on their
doors to examine their books.
Sadly, some taxpayers may resort to “areglo” with BIR officers because of
the very high tax assessments and their companies could not afford. Some
may even resort to “no opening of books” and just negotiate the amount to
be paid.
However, Taxpayers may no longer be able to negotiate or make “areglo”
as in the past.
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Years ago, some of the operations of the BIR were already done
electronically, such as the filing of receipts of tax returns and payments
through the Electronic Filing and Payment System (eFPS).
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Assign or Hire Tax Accountant
Several companies particularly small to medium size ones do not assign or
hire tax accountant who will focus on its tax concerns. Large corporations
normally maintain a tax department composed of lawyers and CPAs who
are expert in taxation.
Companies try to save on the cost of assigning or hiring tax accountants
only to be slapped later on with high tax assessments which is higher than
the cost of 20 or even 100 tax accountants.
A tax accountant’s task includes but not limited to the following:
• conduct tax planning and compliance review to ensure that the
company avoids high taxes and tax exposures legally. By the way,
tax avoidance is legal while tax evasion is illegal. Tax planning and
compliance procedures are tax avoidance.
• review all tax returns and reports before filing with the BIR to
ensure that the same are accurate, properly presented and reconciled
against records and documents.
• ensure that tax reports are filed and paid on time
• review the tax implications of the Company’s transactions
• study tax laws, rules and regulations applicable to the company and
ensure company’s compliance thereto
• update every now and then with the new tax issuances.
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What are the 2014 Directions of BIR?
What are the Possible Audit Related Notices that I will Receive?
1. Letter of Authority (eLA)
2. Letter Notice (LN) – issued for taxpayers with discrepancies on their
income, sales and purchases, including third-party matching (see
RMO 28-2007, 4-2008, 30-2003).
3. Tax Verification Notice (TVN) (replaced with eLA through RMOs
62-2010, 69-2010) – issued for specific tax examination such as
verification and processing of capital gains tax, withholding tax
returns, estate and donors tax returns, claims for tax credit, protested
cases under re-investigations. (see RMOs 33-99, 36-99,66-99, 19-
2000, 24-2000, 30-2000, 13-01, 62-2010, 69-2010)
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4. Quarterly VAT Audit – specific audit for VAT (see RMO 20-2012)
5. LA from Special Investigation Division (SID) – LA for Run After
tax Evaders (RATE) and possible fraud case audit issued by the
Special Investigation Division (SID or Fraud Division). This can be
issued even after the 3 years prescription period.
6. Mission Order – for possible violation of bookkeeping rules and
regulations, particularly on non-issuance of sales or receipts and
governing use of Point-of-sale machines (RMO-3-2009);
7. Memorandum of Assignment with a system generated number shall
be issued through the LAMS under the following instances (RMO-
62-2010):
a. Reassignment for the continuation of the audit/investigation to
another revenue officer (RO).
b. Assignment to the original RO of returned cases by the reviewing
office and reassignment to another RO.
c. Reassingment to another RO due to referral of the case to anohter
investigating office (e.g., cases referred to SID by the RDO)
d. Protested cases/cases for reinvestigation.
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Who are the Priority in the Audit of BIR?
The BIR under Revenue Memorandum Order No. 4-2013 dated March 8,
2013 issued policies and guidelines that shall be observed in the
continuing audit of tax returns by the Revenue District Offices:
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• Manufacturers/dealers of beauty and health supplement
• Amusement/entertainment/event centers
• Advertising agencies
• Business processing outsourcing companies
• E-commerce industry
• Manpower and other recruitment services agencies
• Other industries peculiar to the area of jurisdiction of the district
office;
c. Those who fall below the established benchmarks of tax compliance;
and
d. Those who maintained an ending inventory with value of 100% or
more of its gross sales.
It appears in the above priority list that all Taxpayers whether big or small,
corporate or individuals, are effectively targets of BIR audit.
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What is the Purpose of Audit?
Taxpayers are given enough time to prove that they have paid the right
amount of taxes. Tax audit is a long process and it does not mean that a
taxpayer is presumed guilty of evading his tax obligation once he is
audited.
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What are the Tax Assessment Stages and Related Rules?
Audit/ Subpoena
RDO
Deficiency Duces
Tecum
Dept of Justice Supreme Court
Notice for
X
Informal
Conference
Court of Tax
15 days
PAN FLD/FAN Commissio‐ Appeals
ner
(30 days‐ Protest;
30 days
15 days 60 days – docs) 180 days
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Once the taxpayer’s case is in Legal Division of BIR, it is more difficult to
settle and involves additional cost because there is a payment for the Legal
Division to return the taxpayer’s case to the same Revenue Officer
handling the examination. So instead of ignoring the LA and the notices,
it would be better for the taxpayer to communicate and cooperate with the
BIR prior to the issuance of subpoena duces tecum.
On the other hand, once the taxpayer has submitted the requirements, the
Revenue Officer will proceed with the audit. After the examination, BIR
will issue the PAN. If the taxpayer does not reply within 15 days or does
not agree with the assessment, the BIR will issue the Formal letter of
Demand and Final Assessment Notice (FLD/FAN). If a taxpayer disputes
the assessment, he can protest the assessment to the Commissioner of BIR,
Court of Tax Appeals and even to the Supreme Court.
Take note that effective December 15, 2013, Revenue Regulation 18-13
eliminated the Notice for Informal Conference stage and will immediately
proceed with the issuance of PAN after the examination stage. Therefore,
presentation of supporting documents and justification of balances should
be made exhaustively during the audit or examination stage.
The detailed rules of each stage will be discussed in the succeeding pages.
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Who serves the LA?
The Taxpayer shall then have the right to refuse the service of this LA,
unless the LA is revalidated.
Effective July 1, 2010, the manual issuance of LAs and TVNs are
discontinued for all BIR investigating offices.
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How does an LA Revalidated?
A Letter of Authority can be revalidated only once, for LAs issued in the
Revenue Regional Offices or the Revenue District Offices; or twice, in the
case of LAs issued by the National Office. Any suspended LA(s) must be
attached to the new LA issued (RMO 38-88).
RMO 38-88 issued the following guidelines for a more effective and
efficient investigation and reporting on cases:
Beginning June 1, 2010, the rule on the need for revalidation of LAs
for failure of the revenue officials to complete the audit within the
prescribed period shall be withdrawn. Accordingly, there is no need
for revalidation of the LA even if the prescribed audit period has
been exceeded. However, the failure of the RO to complete the
audit within the prescribed period shall be subject to applicable
administrative sanctions (RMO NO. 044-10).
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6. It shall be the duty of the Division Chief/RDO to report immediately
to the Inspection Service any tax case for which no report of
investigation has been rendered 120 days after the issuance of an
LA.
For corporate taxpayer, the following may receive the LA: (a)
Owner/proprietor, (b) President, (c) Finance Manager, (d) corporate
secretary (e) or any duly authorized representative otherwise the LA is
null and void.
Can the same Revenue officer audit a Taxpayer for consecutive years?
The same Revenue Officer/Group Supervisor shall not be allowed to audit
the same taxpayer for two consecutive years. (RMO 36-99)
A Revenue Officer is allowed only one hundred twenty (120) days from
the date of receipt of a Letter of Authority by the Taxpayer to conduct the
audit and submit the required report of investigation which is the Final
Assessment Notice and Formal Letter of Demand.
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Another 120 days will be allowed to the Revenue Officer to complete the
examination and submit his final report, otherwise, he cannot anymore
continue with the audit unless a waiver is signed by the taxpayer. Reports
submitted beyond this period are null and void.
After the second 120-day period, BIR cannot continue with audit the
Company legally. Most examinations are not completed within the first
120 day period or even during the second 120 days.
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• When the Commissioner chooses to exercise his power to obtain
information relative to the examination of Letter of Authority, for
audit/investigation of taxpayers under the jurisdiction of National
Office, shall be issued and approved by the Commissioner of
Internal Revenue, while, for taxpayers under the jurisdiction of
Regional Offices, it shall be issued by the Regional Director.
What are some of the powers of the commissioner relative to the audit
process?
Obtain data and information from private parties other than the Taxpayer
himself (Sec.5, NIRC); and
Revenue Regulation (RR) No. 18-13 provides that if after review and
evaluation by the Commissioner or his duly authorized representative as
the case may be, it is determined that there exists sufficient basis to assess
the taxpayer for any deficiency tax or taxes, the said Office shall issue to
the taxpayer a PAN for the proposed assessment. It shall show in detail the
facts and the law, rules and regulations, or jurisprudence on which the
proposed assessment is based.
If the taxpayer fails to respond within 15 days from date of receipt of PAN,
he shall be considered in default, in which case, a Formal Letter of
Demand and Final Assessment Notice (FLD/FAN) shall be issued, calling
for payment of the taxpayer’s deficiency tax liability, inclusive of the
applicable penalties.
If the taxpayer, within fifteen (15) days from date of receipt of PAN
responds that he/it disagrees with the findings of delinquency tax or taxes,
an FLD/FAN shall be issued within 15 days from the filing/submission of
the taxpayer’s response, calling for payment of the taxpayer’s deficiency
tax liability, inclusive of the applicable penalties.
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What are the exceptions to issuance of PAN?
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Administrative Rights and Remedies of Taxpayers
The taxpayer shall state in his protest (i) the nature of protest whether
reconsideration or reinvestigatioin, specifying newly discovered or
additional evidence he intends to present if it is a request for
reinvestigation, (ii) date of the assessment notice, and (iii) the applicable
law, rules and regulations, or jurisprudence on which his protest is based,
otherwise, his protest shall be considered void and without force or effect.
If there are several issues involved in the FLD/FAN but the taxpayer only
disputes or protests against the validity of some of the issues raised, the
assessment attributable to the undisputed issue or issues shall become
final, executory and demandable; and the taxpayer shall be required to pay
the deficiency tax or taxes attributable thereto, in which case, a collection
letter shall be issued to the taxpayer calling for payment of the said
deficiency tax or taxes, inclusive of the applicable surcharge abd/or
interest.
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If there are several issues involved in the disputed assessment and the
taxpayer fails to state the facts, the applicable law, rules and regulations, or
jurisprudence in support of his protest against some of the several issues
on which the assessment is based, the same shall be considered undisputed
issue or issues, in which case, the assessment attributable thereto shall
become final, executory and demandable; and the taxpayer shall be
required to pay the deficiency tax or taxes attributable thereto and a
collection letter shall be issued to the taxpayer calling for payment of the
said deficiency tax, inclusive of the applicable surcharge and/or interest.
For requests for reinvestigation, the taxpayer shall submit all relevant
supporting documents in support of his protest within sixty (60) days from
date of filing of his letter of protest, otherwise, the assessment shall
become final.
The sixty (60)-day period for the submission of all relevant supporting
documents shall not apply to requests for reconsideration.
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If the protest is denied, in whole or in part, by the Commissioner’s duly
authorized representative, the taxpayer may either: (i) appeal to the Court
of Tax Appeals (CTA) within thirty (30) days from date of receipt of the
said decision; or (ii) elevate his protest through request for reconsideration
to the Commissioner within thirty (30) days from date of receipt of the
said decision.
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It must be emphasized, however, that in case of inaction on protested
assessment within the 180-day period, the option of the taxpayer to either:
(1) file a petition for review with the CTA within 30 days after the
expiration of the 180-day period; or (2) await the final decision of the
Commissioner or his duly authorized representative on the disputed
assessment and appeal such final decision to the CTA within 30 days after
the receipt of a copy of such decision, are mutually exclusive and the
resort to one bars the application of the other.
a.) Name of the taxpayer and address for the immediate past three (3)
taxable year.
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e.) Date of receipt of assessment notice or letter of demand.
g.) The itemized schedule of the adjustments with which the taxpayer
does not agree.
The taxpayer shall state the facts, applicable law, rules and regulations or
jurisprudence on which his protest is based, otherwise, his protest shall be
considered void and without force and effect on the event the letter of
protest submitted by the taxpayer is accepted, the taxpayer shall submit the
required documents in support of his protest within sixty (60) days from
date of filing of his letter of protest, otherwise, the assessment shall
become final, executory and demandable.
It is filed within thirty (30) days from the Taxpayer’s receipt of the Notice
of Assessment and formal Letter of Demand.
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Any appeal must be done within thirty (30) days from the date of the
Taxpayer’s receipt of the Commissioner’s decision denying the request for
reconsideration or from the lapse of the 180 day period counted from the
submission of the documents. (Sec. 228 of the Tax Code, as amended).
If the Taxpayer is not satisfied with the CTA’s decision, can he appeal
the decision to a higher Court?
Yes, he can. Decisions of the Court of Tax Appeals may be appealed with
the Court of Appeals within fifteen (15) days from the Taxpayer’s receipt
of the CTA’s decision. In the event that the Taxpayer is likewise
unsatisfied with the decision of the Court of Appeals, he may appeal this
decision with the Supreme Court.
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What are the Contents of BIR’s Decision?
The notice may be left at the party’s registered address, with his clerk or
with a person having charge thereof.
If the known address is a place where business activities of the party are
conducted, the notice may be left with his clerk or with a person having
charge thereof.
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If no person is found in the party’s
registered or known address, the
revenue officers concerned shall
bring a barangay official and two (2)
disinterested witnesses to the address
so that they may personally observe
and attest to such absence. The notice
shall then be given to said barangay
official. Such facts shall be contained
in the bottom portion of the notice, as
well as the names, official position
and signatures of the witnesses.
Should the party be found at his registered or known address or any other
place but refuse to receive the notice, the revenue officers concerned shall
bring a barangay official and two (2) disinterested witnesses in the
presence of the party so that they may personally observe and attest to
such act of refusal. The notice shall then be given to said barangay official.
Such facts shall be contained in the bottom portion of the notice, as well as
the names, official position and signatures of the witnesses.
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The server shall accomplish the bottom portion of the notice. He shall also
make a written report under oath before a Notary Public or any person
authorized to administer oath under Section 14 of the NIRC, as amended,
setting forth the manner, place and date of service, the name of the
person/barangay official/professional courier service company who
received the same and such other relevant information. The registry receipt
issued by the post office or the official receipt issued by the professional
courier company containing sufficiently identifiable details of the
transaction shall constitute sufficient proof of mailing and shall be
attached to the case docket.
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What are the Interest, Civil and Criminal Penalties for Tax
Violations? (RR 12-99)
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4. Criminal Liability
Section 254 of the Tax Code provides that any person who willfully
attemps in any manner to evade or defeat any tax imposed under this
Code or the payment thereof shall, in addition to other penalties
provided by law, upon conviction thereof, be punished by a fine of not
less than Thirty thousand pesos (P30,000) but not more than One
hundred thousand pesos (P100,000) and suffer imprisonment of not
less than two (2) years but not more than four (4) years.
No. Section 6 (A) of the Code provides that any tax return filed by a
taxpayer “maybe modified, changed or amended” by the taxpayer within 3
years from the date of such filing provided, however, that no notice for
audit or investigation of such return, statement or declaration has in the
meantime, been actually served upon the taxpayer.
An assessment must be made within three (3) years from the last day
prescribed by law for the filing of the tax return for the tax that is being
subjected to assessment or from the day the return was filed if filed late.
However, in cases involving tax fraud, the Bureau has ten (10) years from
the date of discovery of such fraud within which to make the assessment.
Any assessments issued after the applicable period are deemed to have
prescribed, and can no longer be collected from the Taxpayer, unless the
Taxpayer has previously executed a Waiver of Statute of Limitations.
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What are the Waiver of Statute of Limitation (RMO 20-90)
Pursuant to Section 223 of the Tax Code, internal revenue taxes may be
assessed or collected after the ordinary prescriptive period, if before its
expiration, both the Commissioner and the taxpayer have agreed in writing
to its assessment and/or collection after said period. The period so agreed
upon may be extended by subsequent written agreement made before the
expiration of the period previously agreed upon. This written agreement
between the Commissioner and the taxpayer is the so-called Waiver of the
Statute of Limitations.
The execution of the waiver should comply with RMO No. 20-90,
otherwise it is null and void.
In the execution of said waiver, the following procedures should be
followed:
1. The waiver must be in the prescribed BIR form. This form may be
reproduced by the Office concerned but there should be no deviation
from such form. The phrase "but not after ______ 19 ___" should be
filled up. This indicates the expiry date of the period agreed upon to
assess/collect the tax after the regular three-year period of
prescription.
2. The period agreed upon shall constitute the time within which to
effect the assessment/collection of the tax in addition to the ordinary
prescriptive period.
3. The waiver shall be signed by the taxpayer himself or his duly
authorized representative. In the case of a corporation, the waiver
must be signed by any of its responsible officials.
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Soon after the waiver is signed by
the taxpayer, the Commissioner of
Internal Revenue or the revenue
official authorized by him, as
hereinafter provided, shall sign the
waiver indicating that the Bureau
has accepted and agreed to the
waiver. The date of such
acceptance by the Bureau should
be indicated. Both the date of
execution by the taxpayer and date
of acceptance by the Bureau should be before the expiration of the
period of prescription or before the lapse of the period agreed upon
in case a subsequent agreement is executed.
4. The waiver should be signed by the Regional Director or
Commisioner for cases handled by the National Office and for cases
involving more than 1 million pesos.
5. The waiver must be executed in three (3) copies, the original copy to
be attached to the docket of the case, the second copy for the
taxpayer and the third copy for the Office accepting the waiver. The
fact of receipt by the taxpayer of his/her file copy shall be indicated
in the original copy.
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What is required of a taxpayer who is being audited?
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What course of action shall the Bureau take if the Taxpayer fails to
comply with the Subpoena Duces Tecum?
If, after the Taxpayer fails, refuses, or neglects to comply with the
requirements of the Subpoena Duces Tecum, the Bureau may:
a.) File a criminal case against the Taxpayer for violation of Section 5
as it relates to Sections 14 and 266, of the NIRC, as amended;
and/or
b.) Initiate proceedings to cite the Taxpayer for contempt, under
Section 3(f), Rule 71 of the Revised Rules of Court.
Levy of real property refers to the same act of seizure, but in this case of
real property, and interest in or rights to such property in order to enforce
the payment of taxes. As in the distraint of personal property, the real
property under levy shall be sold in a public sale, if the taxes involved are
not voluntarily paid following such levy.
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In what time period must collection
be made?
If the taxpayer has any pending protest or claim for tax credit/refund of
taxes, and the books and records concerned are material to the case, the
taxpayer is required to preserve his/its books of accounts and other
accounting records until the case is finally resolved.
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2. Summarize, Compare and Derive Variances (within Taxpayer’s Data).
This is the main procedure of the BIR and most tax assessments result
from this.
Obtain data and information from private parties other than the
Taxpayer himself (Sec.5, NIRC). The taxpayers data or information
will be matched against industry benchmarks. Also, the taxpayers
return declaration will also be matched against another taxpayers
whom they dealt business either as supplier or customer.
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Both supplier and customer should match or tie-up. Any significant
discrepancies or variances are basis for the issuance of the letter
notice and subsequent audit.
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6. BIR will also check the taxes on:
• transactions with nonresident foreign corporation/s or citizens, if
any
• salaries, wages and benefits of key officers
• related party transactions
7. On a case to case basis BIR personnel may conduct these:
• Check completeness of books, OR and invoices
• Check compliance with the invoicing requirements. This is to
ensure that ORs and Invoices supporting revenues, costs and
expenses are registered with BIR and conform with the other
requirements.
• Check if there are fraudulent transactions.
• Conduct inventory and surveillance, and prescribe presumptive
gross sales and receipts (Sec. 6, NIRC).
• Fieldwork. In some cases, BIR officers will visit the Company a
few times but do will not vouch or check the hard copy of
vouchers, ORs or invoices. However, Taxpayer should be ready
anytime these are required to be presented.
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4. Non-withholding and under withholding on:
• Purchases of top 20,000 corporations.
• Tax shields particularly allowances of owners and Company
officers
• Transactions with Nonresident Foreign Corporations
5. Undeclared or under-declared revenue
6. Other income or miscellaneous income are not subjected to VAT
7. Bloated miscellaneous expenses and other accounts
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3. Issue BIR-registered OR for all income
4. Support all expenditures with BIR-registered ORs and Invoices
5. Declare correct income
6. Claim only valid expenses
7. Pay correct taxes on time
8. Do tax planning and tax compliance procedures. In tax planning,
taxpayers avoid or minimize taxes. Tax avoidance is legal whereas
tax evasion is illegal.
1. Know the major tax laws that apply to your Company, to each
account and transactions
2. Examine ALL accounts with Tax implications (VAT, withholding
taxes, income tax)
3. Re-compute or test compute balances. For instance, rent expense in
the books could be re-computed by multiplying the monthly rate
times the number of months. The resulting figure should tie-up to
the rent expense per books.
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For instance, if sales in the Financial Statements is P100 Million,
the figures found in the VAT and income tax returns, books and
documents should also be P100 Million. Discrepancies should be
justifiable otherwise a tax assessment will be imposed.
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SECRET NO. 2
The audit of the BIR is also all about relationships. There are hundreds of
ways to build good relationships with tax officers. However, only two
main points will be given emphasis here as follows:
Show respect in case the BIR officers will visit your office.
Consider treating them to lunch or dinner or serving coffee.
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SECRET NO. 3
AUTOMATE
The volume of work involved in reconciling all figures from
documents, books of accounts, financial statements, schedules and tax
returns is tremendous. This is time-consuming and prone to error if done
manually. Manual accounting and reconciliations even when using excel
program is not advised.
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Taxpayer Process:
1. Taxpayer process starts when he sells or buys goods or services.
2. As required by BIR regulations, the taxpayer issues BIR registered
invoices and official receipt for the collections.
3. These documents will be summarized in financial reports which are
usually done by bookkeepers or accountants.
4. From the summarized financial records, accountants and
bookkeepers will prepare the tax returns for submission and filing
with the BIR.
5. When the tax returns are ready, these will be filed with the BIR or
submitted to accredited banks for payment.
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When does Taxpirin play a role in the process?
Errors, variances, inconsistencies and findings on the tax returns and
reports and financial statements will trigger the issuance of LA. Thus, the
taxpayer should ensure that all amounts and figures of related accounts in
various tax returns and reports and financial statements submitted to the
BIR are consistent, error-free and reconciled.
Therefore, Taxpirin should be used before the tax returns are filed with
the BIR as shown in the illustration above. Taxpirin will pre-empt or
uncover errors and inconsistencies supposedly detected by the BIR, had
the taxpayer not used Taxpirin. The new process with the use of Taxpirin
will substantially change as the error, inconsistencies or variances are
identified and corrected. Thus, no LA or LN is issued to the taxpayer.
The taxpayer is classified as low priority in the audit, thus, practically
preventing BIR audit. The revised process is shown below:
New Process with the Use of Taxpirin
Pre‐Audit/ No/Low
Matching Findings
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It should be noted that Taxpirin uses similar approach to BIR’s Pre-audit
Electronic Procedures, thus you can rectify your errors beforehand. It
should be noted that Taxpirin does not replace the work of the Accountant
or bookkeeper. Rather, it makes them more confident with their work as
Taxpirin enhances and confirms the reliablity of the tax returns for filing.
The use of Taxpirin is very simple and easy as S-G-R. Setup, Generate
and Reconcile. Shown below illustrates this simple and easy process:
Taxpirin’s Easy & Simple SGR Process
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2. Generate. This starts with importing of the company’s specific
month’s trial balance that you want to be pre-audited. This process
will take only a few minutes. Then you can now encode the details
of the tax returns’ balances that you prepared. After encoding the
tax returns’ balances, a report is generated to determine the errors,
inconsistencies, variances and possible tax assessments. Red font
numbers are findings or possible tax deficiencies and black font
numbers are over-declaration or payments.
2. Cures Tax Stress and Hassles. It identifies and computes for tax
errors, inconsistencies or findings for previously filed tax returns
(prior year tax returns). Then you can reconcile and adjust to
eliminate the errors. Thus, prepares you for the BIR audit, if it
happens.
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4. Avoid costly changes of accounting personnel. Taxpirin retains
records for 10 years so you will avoid the effects of accounting
personnel changes. Such personnel changes disrupts the tax
knowledge continuity which results to unexplained tax variances,
which further results to costly tax assessments.
6. Save more money by not hiring a tax consultant who your tax
compliance. The Tax Audit Checklist is available. The checklist
will guide you on your tax planning and compliance and how to
manage the BIR audit, if it happens.
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Create your 30-day Free trial NOW. Visit www.taxpirin.com NOW.
References:
Other than the specific BIR revenue regulations, circulars, memoranda, orders and issuances, we also
referred to BIR website (taxpayers bill of rights and annual performance reports).
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