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At a conference recently held by professional accountants where the key features of the House Bill (HB) No. 4774, also known as the Tax Reform for Acceleration and Inclusion (TRAI), were presented, the participants elicited the strongest reaction to the proposed changes in bookkeeping rules. The reaction is understandable, considering that these professional accountants know firsthand the challenges taxpayers face in their businesses, which include, among others, complying with complex tax rules and time-consuming bookkeeping requirements.

It is axiomatic in a democratic society that no one should be deprived of life, liberty or property without due process of law, i.e., to be given a chance to heard and present a case according to the rules set forth by the authorities before any action can be taken. Failing this, any action of the government to take one’s life, liberty or property is void and of no effect. In a recent decision promulgated by the Court of Tax Appeals (CTA) in Mannasoft Technology Corp. vs. Commissioner of Internal Revenue, CTA Case no. 8745 dated Jan. 13, 2017, the CTA Third Division reiterated the importance of strictly adhering to the rules set by the Bureau of Internal Revenue (BIR) in conducting tax assessments.

DO YOU ever read the online portal terms and conditions before logging in to a website or the user agreement before signing up with social sites like Facebook, Twitter, Pinterest and LinkedIn? Do you take the time to understand the fine print of a loan, investment, insurance or credit card application form before affixing your signature? Do you give a second thought when you write in your complete name and birth date in surveys?

New technology, and the new applications we devise for it, is transforming the business landscape more quickly than we ever thought, impacting not only the newly created roles within our organizations, but our entire workforce. Given this scenario, how does a company now create a stream of high-quality talent with the relevant skills? Grant Thornton suggests some key areas that need to be considered to sustain business growth:

With the current administration, we are finally seeing steady developments on tax reform. On Jan. 17, the first package of the program, covering a proposed reduction in personal income taxes and an increase in consumption taxes, was filed with the House of Representatives. This would be the closest we have got to finally seeing progress towards a simplified, fair and more efficient tax system. Is change finally coming? Will this change truly reduce poverty and promote inclusive growth in the Philippines? Let us hope so.

DECEMBER 31. For normal people, it is the day to turn a new leaf in their life and leave behind the good and bad memories of the previous year so they can look forward to a great year ahead. For the people preparing the Company’s financial statements whose fiscal year ends on December 31, it is the most dreadful day of their life. On the other side of the spectrum, for the ones who will be reviewing and auditing the Company’s financial statements, it marks the start of a busy season. In short, the accountants and the auditors become immortal starting December 31.

Many companies have attempted to improve their financial close process, but most are still burdened with the slow-paced record-to-report cycle even to this day. Some companies take several weeks, or worse, even months, to close their books. I even know of companies that produce a different version of truth every time they generate financial reports, thus, undermining the integrity and reliability of the reports.

It is usual in the Philippines that the same tax law provision has been interpreted and implemented differently by different Commissioners of Internal Revenue (CIR). This is the case of the value-added tax (VAT) claim processing. Section 112 of the Tax Code provides that a taxpayer claiming excess input VAT for refund or tax credit must file the claim with the Bureau of Internal Revenue (BIR) within two years of the close of the taxable quarter during which the sales were made. In case of full or partial denial of the claim or failure of the BIR to act on it within a period of 120 days from receipt of the claim, a taxpayer may elevate its claim to the Court of Tax Appeals (CTA) within 30 days from receipt of the decision or upon expiration of the 120-day period.