The Philippine Tax Whiz led a TRAIN seminar at the 44th Founding Anniversary of the Business, Industry, and Retired Cavaliers, Inc. (BIRCI) on Thursday, November 22. The event, titled “TRAIN Talk: Things Your Parents Never Told You About Taxes,” was held at Camp Aguinaldo, Quezon City. The seminar was attended by retired and current military officials.
The event is part of the Asian Consulting Group’s advocacy to help taxpayers by promoting tax education.
“Lack of knowledge about taxes is a leading cause in failed compliance,” said the Founding President of ACG.
The recent tax reform has introduced various changes to the tax system with far-reaching implications. Not knowing about these changes is a quick way to paying unnecessary fines and penalties borne of failed compliance.
On the other hand, learning about the tax reform could present opportunities that businesses can take advantage of.
During the event, the tax expert discussed the current situation of the tax system in the Philippines. He noted the current system’s inefficiency as the reason for the tax reform.
He then explained the provisions of the first package of the tax reform, TRAIN Law. The Tax Reform for Acceleration and Inclusion lowered the personal income tax, imposed offsetting measures, and introduced tax administrative reforms.
TRAIN Law is supposed to be followed by a tax amnesty (Package 1B), a lowering of the corporate income tax (Package 2), increased taxes in mining and tobacco (Package 2+), property tax reform (Package 3), and capital income taxation reform (Package 4).
The Philippine Tax Whiz also discussed his proposals necessary in making the tax reform work. According to the tax reform advocate, “Tax policy reform without tax administrative reform is pointless.”
Among the changes he proposed is the implementation of a risk-based BIR Audit.
Currently, the same taxpayers are being audited over and over, without reprieve. The entire process is quite open to unscrupulous government agents and needs to be overhauled. For now, the only option for taxpayers to get rid of the BIR audit is to learn about them.
ACG offers an Executive Tax Briefing to guide taxpayers on how to prepare for and invalidate the BIR audit. Interested taxpayers can register here.
For more inquiries, you can reach us at co[email protected] or via (02) 622-7720.