#AskTheTaxWhiz: How can I pay the right taxes? [Part 1]

Is there a way to pay taxes without being compromised? Even if we pay the right taxes, we end up paying more every time the Bureau of Internal Revenue (BIR) audits us.

Yes. There is definitely a way to pay taxes without penalties and compromises.

You have to make sure to pay the right taxes correctly and on time. If you do exactly that, even if the BIR audits your company, the examiners will not find any deficiency or assessment.

However, even if you think you pay the right taxes but you fail to comply with tax regulations including submission of supporting documents such as the summary list of sales and purchases (SLSP), alphalist, etc, the BIR will still impose compromise penalties.

Can you tell us more about the Seal of Honesty (SOH) Certification Program? What is CSR Philippines? If it will keep the BIR examiners away from our business, I will subscribe to it.

Seal of Honesty (SOH) is a certification program spearheaded by CSR Philippines in partnership with the BIR and Department of Trade and Industry (DTI) to promote a culture of honesty and integrity in paying taxes. SOH supports and complements the Integrity Pledge of the Integrity Initiative (II), signed by professionals and corporations for ethical and corporate good governance.

The Center for Strategic Reforms of the Philippines Incorporated or CSR Philippines is a non-stock, non-profit, and non-governmental organization which aims to assist micro, small, and medium enterprises (MSMEs) in finding solutions to concerns such as but not limited to financial support, low productivity and competitiveness, limited management and financial capabilities, as well as the lack of access to new technology. Through public-private collaborations, CSR seeks to promote MSME development and genuine tax reform toward inclusive growth.

CSR Philippines signed a memorandum of understanding (MOU) with the BIR and DTI on August 23, 2016. This MOU states that:

I. They shall work cooperatively in spreading tax awareness among taxpayers, where CSR Philippines can serve as think tank of the DTI and BIR on ease of doing business and in paying taxes in order to broaden the taxpayer base;

II. They shall collaborate as advocacy partners in simplifying and integrating business registration and procedures for MSMEs in order to encourage more potential entrepreneurs to do business in the country, which will significantly contribute to achieving inclusive growth;

III. They shall aim to improve voluntary compliance through empowerment and tax awareness as well as through the SOH Certification Program where businesses, most especially the medium and large enterprises, which will commit to promoting a culture of honesty and integrity in paying taxes, will be awarded and recognized for their honest and fair contributions;

IV. They shall recognize MSMEs as a major contributing force to our country’s investment and economic growth, job creation, taxation, productivity enhancement, and technological innovation by assisting instead of assessing them in their government compliance.

To know more about the SOH Certification Program, you may email info@sealofhonesty.ph or call (02) 3725727. Its official website will soon be available for online subscription: www.sealofhonesty.ph. – Rappler.com

Mon Abrea, popularly known as the Philippine Tax Whiz, is one of the 2016 Outstanding Persons of the World, a Move Awards 2016 Digital Mover, one of the 2015 The Outstanding Young Men of the Philippines (TOYM), an Asia CEO Young Leader of the Year, and founder of the Abrea Consulting Group and Center for Strategic Reforms of the Philippines (CSR Philippines). He currently serves as Adviser to the Commissioner of Internal Revenue of the Philippine government on tax administration reform in promoting inclusive growth. Follow Mon on Twitter (@askthetaxwhiz) or visit his Facebook page. You may also email him at consult@acg.ph.