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Audit approach overview
Our audit approach will allow our client's accounting personnel to make the maximum contribution to the audit effort without compromising their ongoing responsibilities
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Annual and short period audit
At P&A Grant Thornton, we provide annual and short period financial statement audit services that go beyond the normal expectations of our clients. We believe strongly that our best work comes from combining outstanding technical expertise, knowledge and ability with exceptional client-focused service.
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Review engagement
A review involves limited investigation with a narrower scope than an audit, and is undertaken for the purpose of providing limited assurance that the management’s representations are in accordance with identified financial reporting standards. Our professionals recognize that in order to conduct a quality financial statement review, it is important to look beyond the accounting entries to the underlying activities and operations that give rise to them.
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Other Related Services
We make it a point to keep our clients abreast of the developments and updates relating to the growing complexities in the accounting world. We offer seminars and trainings on audit- and tax-related matters, such as updates on Accounting Standards, new pronouncements and Bureau of Internal Revenue (BIR) issuances, as well as other developments that affect our clients’ businesses.
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Tax advisory
With our knowledge of tax laws and audit procedures, we help safeguard the substantive and procedural rights of taxpayers and prevent unwarranted assessments.
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Tax compliance
We aim to minimize the impact of taxation, enabling you to maximize your potential savings and to expand your business.
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Corporate services
For clients that want to do business in the Philippines, we assist in determining the appropriate and tax-efficient operating business or investment vehicle and structure to address the objectives of the investor, as well as related incorporation issues.
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Tax education and advocacy
Our advocacy work focuses on clarifying the interpretation of laws and regulations, suggesting measures to increasingly ease tax compliance, and protecting taxpayer’s rights.
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Business risk services
Our business risk services cover a wide range of solutions that assist you in identifying, addressing and monitoring risks in your business. Such solutions include external quality assessments of your Internal Audit activities' conformance with standards as well as evaluating its readiness for such an external assessment.
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Business consulting services
Our business consulting services are aimed at addressing concerns in your operations, processes and systems. Using our extensive knowledge of various industries, we can take a close look at your business processes as we create solutions that can help you mitigate risks to meet your objectives, promote efficiency, and beef up controls.
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Transaction services
Transaction advisory includes all of our services specifically directed at assisting in investment, mergers and acquisitions, and financing transactions between and among businesses, lenders and governments. Such services include, among others, due diligence reviews, project feasibility studies, financial modelling, model audits and valuation.
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Forensic advisory
Our forensic advisory services include assessing your vulnerability to fraud and identifying fraud risk factors, and recommending practical solutions to eliminate the gaps. We also provide investigative services to detect and quantify fraud and corruption and to trace assets and data that may have been lost in a fraud event.
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Cyber advisory
Our focus is to help you identify and manage the cyber risks you might be facing within your organization. Our team can provide detailed, actionable insight that incorporates industry best practices and standards to strengthen your cybersecurity position and help you make informed decisions.
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ProActive Hotline
Providing support in preventing and detecting fraud by creating a safe and secure whistleblowing system to promote integrity and honesty in the organisation.
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Accounting services
At P&A Grant Thornton, we handle accounting services for several companies from a wide range of industries. Our approach is highly flexible. You may opt to outsource all your accounting functions, or pass on to us choice activities.
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Staff augmentation services
We offer Staff Augmentation services where our staff, under the direction and supervision of the company’s officers, perform accounting and accounting-related work.
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Payroll Processing
Payroll processing services are provided by P&A Grant Thornton Outsourcing Inc. More and more companies are beginning to realize the benefits of outsourcing their noncore activities, and the first to be outsourced is usually the payroll function. Payroll is easy to carve out from the rest of the business since it is usually independent of the other activities or functions within the Accounting Department.
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Our values
Grant Thornton prides itself on being a values-driven organisation and we have more than 38,500 people in over 130 countries who are passionately committed to these values.
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Global culture
Our people tell us that our global culture is one of the biggest attractions of a career with Grant Thornton.
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Learning & development
At Grant Thornton we believe learning and development opportunities allow you to perform at your best every day. And when you are at your best, we are the best at serving our clients
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Global talent mobility
One of the biggest attractions of a career with Grant Thornton is the opportunity to work on cross-border projects all over the world.
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Diversity
Diversity helps us meet the demands of a changing world. We value the fact that our people come from all walks of life and that this diversity of experience and perspective makes our organisation stronger as a result.
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In the community
Many Grant Thornton member firms provide a range of inspirational and generous services to the communities they serve.
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Behind the Numbers: People of P&A Grant Thornton
Discover the inspiring stories of the individuals who make up our vibrant community. From seasoned veterans to fresh faces, the Purple Tribe is a diverse team united by a shared passion.
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Fresh Graduates
Fresh Graduates
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Students
Whether you are starting your career as a graduate or school leaver, P&A Grant Thornton can give you a flying start. We are ambitious. Take the fact that we’re the world’s fastest-growing global accountancy organisation. For our people, that means access to a global organisation and the chance to collaborate with more than 40,000 colleagues around the world. And potentially work in different countries and experience other cultures.
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Experienced hires
P&A Grant Thornton offers something you can't find anywhere else. This is the opportunity to develop your ideas and thinking while having your efforts recognised from day one. We value the skills and knowledge you bring to Grant Thornton as an experienced professional and look forward to supporting you as you grow you career with our organisation.
THE BUREAU of Internal Revenue’s (BIR) Revenue Regulations (RR) and other issuances on transfer pricing (TP) are relatively evolving. In 2013, the BIR issued RR No. 2-2013 which outlines Philippine transfer pricing regulations and the guidelines in applying the arm’s length principle for cross-border and domestic transactions between related parties.
In 2019, the BIR issued Revenue Audit Memorandum Order No. 1-2019 on TP Audit Guidelines. The Memorandum Order standardized audit procedures and techniques in the audit of taxpayers with related party and/or intra-firm transactions. And recently, the BIR issued its latest guidance through RR No. 19-2020, as amended by RR No. 34-2020 and Revenue Memorandum Circular (RMC) No. 54-2021, which reinforces TP rules by requiring the use of the new BIR Form No. 1709 for reporting related party transactions during a specific taxable period.
What is BIR Form No. 1709 (RPT Form)?
It is an information return on transactions with related parties, whether international or domestic. It shall be filed as an attachment to the annual income tax return (AITR). This BIR form shall contain the detailed nature of related party transactions, as well as how the taxpayer’s accounts are affected, the business overview of the ultimate parent company, and the details of the business and industry of the taxpayer and related parties. The purpose of requiring taxpayers to submit the RPT Form is to allow the BIR to assess transfer pricing risks.
Who are required to file BIR Form No. 1709?
A taxpayer is required to file the RPT Form if the following conditions are present:
1. The taxpayer is required to file an annual income tax return;
2. It has transactions with a domestic or foreign related party during the concerned taxable period; and,
3. It falls under any of the following categories:
a.Large taxpayers; or
b. Taxpayers enjoying tax incentives (i.e., entities registered with the Board of Investments and economic zone enterprises, those enjoying income tax holiday, or those subject to preferential income tax rate; or
c. Taxpayers reporting net operating losses for the current taxable year and the immediately preceding two (2) consecutive taxable years; or
d. A related party that has transactions with (a), (b), or (c).
What are considered as related party transactions relevant to this form?
A related-party transaction is a transaction that occurs between related parties and involves the transfer of resources, services, or obligations between parties.
A related party is a person or entity that is related to the entity that is preparing its financial statements (referred to as the reporting entity):
- A person or a close member of that person’s family is related to a reporting entity if that person:
a. Has control or joint control over the reporting entity; or
b. Has significant influence over the reporting entity; or
c. Is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
- An entity is related to a reporting entity if any of the following conditions applies:
a. The entity and the reporting entity are members of the same group;
b. One entity is an associate or joint venture of the other entity;
c. Both entities are joint ventures of the same third party;
d. One entity is a joint venture of a third entity and other entity is an associate of the third entity;
e. The entity is a post-employment defined benefit plan for employees of either reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employees are also related to the reporting entity;
f. The entity is controlled or jointly controlled by a person identified in (a);
g. A person identified in (a) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); or
h. The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or the parent of the reporting entity.
How to file the RPT Form and when should it be filed?
The taxpayer has the following options in filing the RPT Form:
- File it manually in the Revenue District Office where the taxpayer is registered; or
- File it electronically through the Electronic Audited Financial Statements (eAFS) system.
Pursuant to RMC No. 44-2021, the deadline for the submission of the RPT Form are as follows:
- Manual Filer Taxpayers
a. eAFS Facility/Manual without tax payable - 15 days from statutory due date of filing the AITR, or electronic date of filing of the AITR, whichever comes later
b. Manual with payable - Statutory deadline for filing of AITR
- Electronic Filer Taxpayers
a. eAFS Facility & Manual with or without tax payable- 15 days from statutory due date of filing the AITR, or electronic date of filing of the AITR, whichever comes later.
What is the effect of failure to supply material information?
If the taxpayer fails to provide any material information (e.g., details of the related parties and related party transactions, etc.), the BIR will consider the RPT Form as not duly filed and the maximum amount of P25,000 as a penalty for failure to file such information return will be imposed.
With the implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act and calendar year-end compliance reports, complying with such requirements may seem an additional burden for taxpayers. However, it is important to remember that following such regulations helps in mitigating TP-related risks that come with possible deficiencies, tax liabilities, and penalties.
As published in Mindanao Times, dated 31 May 2021