Outsourcing tax functions could be the key

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Order (RMO) 22-11, which amended the audit criteria for taxable years 2009 and 2010.

The said RMO enforces stricter rules to be on the list of the BIR’s last priority for audit.

Specifically, it retained two criteria set in the order of having an effective income tax rate of 18% and having no Letter Notice issued due to finding or suspicion of under-declaring sales and revenues.

The recent RMO added two other criteria, as follows:

  • Increase in income tax payment by at least 20% from the immediately preceding year; and
  • Full compliance with all the submission and reportorial requirements (e.g., summary list of sales and purchases, alphalist, etc.). To constitute full compliance, all required fields of said reports must be properly filled up.

However, with all the pressures of improving the company’s primary business and with all the frequent changes in government tax rules and regulations, how can a taxpayer be in the list of last priority audit?

Outsourcing tax functions could be the key.

Read more at Business World

 

Con Yap