It may seem scary when your business receives a Letter of Authority (LOA) from the BIR especially if you lack knowledge about its process. Oftentimes, businesses would equate BIR audit with closure of their companies, imprisonment or paying tons of penalties and compromises – which is not always the case.
The main objective of a tax audit is to check if a certain taxpayer is declaring its actual sales, expenses and income, and is paying its taxes correctly and on time. Any discrepancy among these will trigger an assessment which oftentimes is accompanied by huge amounts of penalties.
The question is – how would you know if your books are tax audit proof? Do you feel like even if you declare everything, BIR still assesses you for alleged unpaid taxes?
Tax season may happen once a year but tax audits happen all year round. Documents, receipts, and books must always be filed correctly and on time so that if you receive a Letter of Authority, you would not need to panic.
Find an inaccuracy in the documents then they may be subject to minor to grave penalties.
Know your rights as a taxpayer during an audit! Watch the previous BIR in Action Live episode on how to handle BIR audit hosted by Mr. Mon Abrea: https://tinyurl.com/ykurm8ej
With that, the Chairman and CEO of Asian Consulting Group, Mon Abrea is inviting all CEOs, founders, and business owners on our exclusive online program – Executive Tax Management Program (ETMP). The first session will start today at 3 pm. Exposing the mistakes in tax compliance leading to a BIR audit.
Fix your tax issues through ETMP. Register now: https://tinyurl.com/3znh7f4n
For inquiries, contact 09176278805 or email us at consult@acg.ph
