ETM belief and conviction

WHY BIR
By surprise, BIR stormed a factory and demanded to talk to either its accountant or sales manager. Having fearful hearts, the frontliners called them both. The unprepared accountant and the surprised sales manager
SALE RECEIVABLE

Asks for Credit Term

Unknown to the owners, accountant and sales manager, the following information is already in the control and possession, viz;

A privileged communication. Not a legal evidence.

TITLE

2011
600,000,000 11,500,000

2010
550,000,000 43,000,000

reluctantly stopped their regular works and walked toward the lobby. Immediately, upon seeing the BIR, as taxpayers always do, they smilingly offered sumptuous snacks and ice-cold refreshments, and the most comfortable space in the premises where the BIR can leisurely feast the free meals. In their minds, this accommodation is unfair because the same privilege is never given or offered to any employee. After enjoying the free cholesterol snack and too sweet refreshment, the BIR handed over a Mission Order having a statement that an inventory surveillance shall be conducted for 15 consecutive days from 8 am up to 5 pm. While they were reading it, the BIR requested sampler VAT invoices and ofcial receipts. Without any question, the accountant left the room to secure the same. Then, they asked about the average credit term being provided to customers. 60 days said the sales manager. While presenting the sampler, the same question was asked. Not knowing the effect, she replied 60 days. Then, as part of diversionary tactics, the conversation was shifted to religion and political issues. Exactly 4 pm, the BIR left or a violation of leaving time stated in the Mission Order.

From the above data, the credit term can be computed or 17 days. The documentary evidence showed 17 days while parol evidence netted 60 days. These means that, in the eyes of the BIR, someone perjured or the fraudulent statements or returns had been led. By using the 60-day credit term, at least the, receivable for 2011 should be 100,000,000 but the nancial statements or returns showed 11,500,00 which casts doubt to the authenticity of the receivable. The difference of 88,500,000 could be presumed as an undeclared income where 9,500,000 value added tax and 23,700,000 income tax should be paid. In this scenario, the owners and its employees in-charge have so many explanation to make for their representation presented potential deceit. ETM is inviting entrepreneurs to study tax accounting and be part of the School for Tax Accountant. Let us start a new profession - Tax Consultant. A School for Tax Consultants is now accepting enrollees to a new and exciting profession. Be empowered. Be vigilant. Be a real Taxpayer. Thank you.

VISIT EXPLAININGTAXMISTAKES.COM NOW.

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