The Bureau of Internal Revenue (BIR) has issued rules mandating a lower delinquency and deficiency interest rate of 12 percent under the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
Revenue Regulations No. 21-2018 issued by Finance Secretary Carlos G. Dominguez III and Internal Revenue Commissioner Caesar R. Dulay on Sept. 14 noted that under Republic Act No. 10963 or the TRAIN law, unpaid taxes were to be slapped interest “double the effective legal interest rate for loans or forbearance of any money in the absence of an express stipulation as set by the Bangko Sentral ng Pilipinas from the date prescribed for payment until the amount is fully paid.”
The SEC online registration system was launched late last year even before the signing of Republic Act (RA) No. 11032 or the Ease of Doing Business Act which aims to streamline the procedures and requirements in establishing a business and renewing business permits or registrations.
Prior to the enactment of the RA, the government agencies had been trying to make business registration more efficient by rationalizing the processes through an integrative approach, one of which was the so-called Integrated Business Registry System (IBRS). Under the IBRS, the SEC issues a Unified Registration Record containing the newly registered company’s SEC registration number, pre-issued tax identification number and the corresponding pre-issued employer membership numbers with the three social agencies, the SSS, PhilHealth and Pag-IBIG.
INCOME TAX KNOW-HOW FOR NON-ACCOUNTANTS
The yearly income tax deadline is fast approaching and you must remember that leaving everything to your accountant does not exempt you from criminal and civil liabilities. Ignorance of the law is no excuse, so before signing your income tax forms, it is your responsibility to understand if it is correctly done so that you will not be charged with violations.
The Bureau of Internal Revenue (BIR) is now very aggressive in trying to reach its revenue targets so you must have a basic understanding of the correct way of paying your income tax in case you are selected for auditing. Unlike popular misconception, you do not need to be an accounting graduate to learn many important matters regarding income taxation. Just the same, knowing the basics about taxation is very helpful. Here are a few of the important things you must learn:
Almost everyone needs to have a basic understanding of financial statements. Even if you have accountants to assist you, it is important that you too can read the main financial statements like the balance sheet and income statement. Even if you have no accounting background, it is possible to understand the fundamentals with just a little effort.
To give you a brief introduction to the subject, here are some of the important things you should learn and why they are very useful to know:
ENTREPRENEURSHIP or BUSINESS SET UP
Either a Corporate or a Sole Proprietorship, we can provide complete registration services for both kind of businesses. We can help you to set up your new business in the most effectively planned and profitable way. It is our philosophy that for all good ideas to succeed they must be properly planned and implemented. We understand the requirements of most entrepreneurs and fulfill them as quickly as possible in order to make business ideas profitable.
THINGS TO CONSIDER ON INTERNAL CONTROL
As a Business Owner, CEO, COO, CFO, Senior Executive or Director and the rest, if you want comfort that there is no wastage being incurred in your business operations. If you want to be assured that when you look at the balances in your books, they are correct. If you want to be able to sleep at night, knowing in confidence that no letter would arrive in the mail alleging that your company violated laws and regulations; then you are yearning for internal control.
Edgar Navarro Picache, CPA is a financial executive with 20+ years of practical experience in a variety of leadership positions in public accounting and private industry.
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