This document discusses the Philippine Bureau of Internal Revenue's (BIR) new audit selection criteria for 2010 tax returns. The criteria targets taxpayers who failed to include nine new schedules in their financial statements as required by a recent BIR rule. Unconfirmed reports suggest most of the country's 4 million businesses did not comply. If each faces a 50,000 peso penalty, the BIR could collect 200 billion pesos in revenue. However, BIR officials clarified that no specific penalty is defined in the rule. While taxpayers may face audits, the document encourages educating themselves and verifying consultants' advice, rather than automatically receiving penalties.
This document discusses the Philippine Bureau of Internal Revenue's (BIR) new audit selection criteria for 2010 tax returns. The criteria targets taxpayers who failed to include nine new schedules in their financial statements as required by a recent BIR rule. Unconfirmed reports suggest most of the country's 4 million businesses did not comply. If each faces a 50,000 peso penalty, the BIR could collect 200 billion pesos in revenue. However, BIR officials clarified that no specific penalty is defined in the rule. While taxpayers may face audits, the document encourages educating themselves and verifying consultants' advice, rather than automatically receiving penalties.
This document discusses the Philippine Bureau of Internal Revenue's (BIR) new audit selection criteria for 2010 tax returns. The criteria targets taxpayers who failed to include nine new schedules in their financial statements as required by a recent BIR rule. Unconfirmed reports suggest most of the country's 4 million businesses did not comply. If each faces a 50,000 peso penalty, the BIR could collect 200 billion pesos in revenue. However, BIR officials clarified that no specific penalty is defined in the rule. While taxpayers may face audits, the document encourages educating themselves and verifying consultants' advice, rather than automatically receiving penalties.
LOA, PLEASE! A PRIVILEGED COMMUNICATION AND NOT A LEGAL EVIDENCE
JUNE 12, 2011
ETM cannot help it but
to admire and be amazed at the geniuses of the BIR Commissioner and involved revenuer officers. Before 2010 ended, the BIR issued a rule that mandated Filipino-taxpayers and their external CPAs to prepare and release financial statements and tax returns having the nine (9) fresh schedules. Despite its obligatory nature, many, upon the advise of their trusted consultants, deliberately failed and refused to abide. Understanding their minds, the BIR, again, released in 2011 its lethal weapon that is 2010 audit selection criteria. An audit selection criterion authorizes the issuance of electronic Letter of Authority for the collection of deficiency taxes from and prosecution and harassment (oooopps!, Sorry, joke only.) of taxpayers. Its newest criterion is the failure of taxpayers to fully include and present the nine schedules in their Notes to Financial Statements. Unconfirmed reports reaching Emelino T Maestro said that most of the 4,000,000 businesses miserably failed to comply. Well, if there is only 50,000 pesos penalty, the BIR can easily collect 200,000,000,000 pesos. However, during a conversation with CLD Aguilar and RDO Galicia, no specific penalty is imposable as this is not provided in the rule. ETM stated that in lieu of receiving a LOA, is it possible just to pay the penalty. Information shared confirmed that only the BIR top management could decide. Moreover, as they said, public policies and orders should be adhered to at all times. Having been said, taxpayers shall face the truth and brace for a new and exciting 2010 BIR audit. ETM encourages the taxpaying public to educate themselves and trust their existing consultants but leave an elbow room to verify their suggestions and advises. Enroll @ School for Tax Consultants or School for Tax Accountants because no formal school is offering a career as and business of a Tax Consultants. Thank you VISIT EXPLAININGTAXMISTAKES.COM NOW.
Administrative Remedies (Protesting of Assessment, Recovery of Excess or Erroneously Paid Taxes, Request For The Compromise, Abatement or Refund or Credit of Taxes, Request For Rulings)