Who are required to file Annual Income Tax Returns?

I received a message from a finance officer of a multinational company regarding a question as to what companies are required to file Annual Income Tax Returns.  Let me share below the basic answer to that question. I think this is timely given that we are about to close our books for 2010 and file our taxes on or before April 15.

In accordance with Sec. 232-A of the Tax Code, "All corporations, companies, partnerships or persons required by law to pay internal revenue taxes shall keep a journal and a ledger or their equivalents: Provided, however, That those whose quarterly sales, earnings, receipts, or output do not exceed Fifty thousand pesos (P50,000) shall keep and use simplified set of bookkeeping records duly authorized by the Secretary of Finance where in all transactions and results of operations are shown and from which all taxes due the Government may readily and accurately be ascertained and determined any time of the year: Provided, further, That corporations, companies, partnerships or persons whose gross quarterly sales, earnings, receipts or output exceed One hundred fifty thousand pesos (P150,000) shall have their books of accounts audited and examined yearly by independent Certified Public Accountants and their income tax returns accompanied with a duly accomplished Account Information Form (AIF) which shall contain, among others, information lifted from certified balance sheets, profit and loss statements, schedules listing income-producing properties and the corresponding income therefrom and other relevant statements. "

The above provision pertains to the necessity of audit by an independent CPA on the financial statements of the company that will accompany the Annual Income Tax Return to be filed. The independent CPA will sign on the opinion on the audit report and not on the Annual Income Tax as this is management's responsibility. Normally, the ITR is signed by the Company's President/CEO/CFO and the Finance Manager/Treasurer.

However, in the Philippine setting, the auditor, in addition to the audit of the FS assists the client in the computation of tax payable and proposes adjustments.  He will just attach an "Auditor's Report on the Financial Statements for Filing with the Bureau of Internal Revenue" which attests that there is no relationship by consanguinity or affinity of the auditor to any stockholder of the Company and that the amounts on the schedule of taxes and licenses and valid.

Blangko

Blangko!

Yan ang itsura ng MS Word document na sinusulatan ko nito ngayon. Unti-unti kong sinusubukang  takpan ang blangkong page na ito ng mga salitang tulad ng nababasa mo ngayon. Kapag blangko ang nakikita mo, ano ang naiisip mo? Boring ba? Gulat ka ba? Naguguluhan? O nasisilaw ka sa kaputian ng pahina na tumatambad sayo?

Kung tatanungin mo ako, ang isasagot ko sayo ay, “I feel empty”.

‘Lapit na ng pasko ‘pre! Ano bang balak mo? Bibili ka ba ng bagong sapatos, damit, Christmas tree, hamon, keso de bola? Makikipag siksikan ka rin ba sa Divisoria? O kuntento ka na sa Rustan’s ka na lang maglalamyerda? Oo nga pala, may Christmas bonus ka na! Libre naman jan pre!

Libre mo naman ako ng  isang starburaks dyava cheap, pampatanggal lang ng amats ko pre. Nung isang Linggo pa raw akong mukhang lasing sabi  nung barker sa Cubao. Takte kasi yang cartoon pic mania na yan sa FB. Naalala ko tuloy na mukha palang cartoons yung isang teacher ko. Naalala mo ba si Taguro sa Streetfighter? Yung kalaban ni Eugene? Oo yun nga! Tanga wala sa streetfighter yun! Nasa Ghost Fighter kaya un. Bobo mo talaga ‘dre! Paturo ka nga kay Kuya Jobert! Aligaga ka rin eh.

Peace Yo!

Sensya na dude medyo di kasi ako OK ngayon eh. Tanungin mo ko kung bakit. Sabihin mo “Bakit?” Game… 1…2…3….. Eh hindi mo naman sinasabi eh. Game na kasi. 1…2…3… $%#^&*&@

Yan! Dyan ka magaling. Kaya ka iniwan ng GF mo di ka raw kasi marunong manghula. Putek! Alam mo ba na kapag sinabi ng babae na “Ok lang” ibig sabihin nun “Oo. Gusto ko yan”. At kapag sinabi niyang “Bahala ka na nga!” ibig sabihin nun “Sundin mo ang gusto ko”.  Tsk tsk… Kelangan mo talaga ng psychic powers! Bili ka pare marami na nagkalat na ganun. Samahan kita. Bili tayo Quiapo balita ko meron daw outlet dun si Hayden Kho.

Nga pala, may nanalo na ng Php 740M sa lotto. Lucky Pick pa nga pre eh. Swerte ng nanalong yun. Pasalamat siya hindi ako nakataya nung araw na un kundi may kahati siya. Kung sakaling nanalo ako, pre unang una kong bibilihin lam mo kung ano? Bibili ako ng common sense at ipamimigay ko sa lahat ng Pilipino lalo na kay Glenn. Takte na yan! Hanggang ngayon sumasakit ang bangs ko araw-araw at umaabot na hanggang eyebrows.  Nakakatakot baka lumala ito at maging Bangs Cancer.

I wonder why common sense is so uncommon nowadays. Sabi ni manong drayber, dahil daw yan sa hindi nanalo ulit si Erap. Dahil kundi raw sana na-impeach si Erap at kung nanalo sana nung nakaraang eleksyon, maunlad na sana ang Pilipinas at… at… (sorry ‘pre di na nakapagsalita si manong. Di ako nakapagpigil eh. Nilunod ko ng diesel kanina habang nagpapakarga kami sa Shell).

Anyways, nakakatuwa isipin na naimbento ang Facebook. Dahil sa Facebook, nagkikita ang mga matagal nang nagkalayo. Mga dating mag-classmates, kababata, kapitbahay, ka-text, ka-sex, kabit, kakosa, kaaway, kalaro ng Chinese garter, ten twenty, shagidi shagidi shapopo, pitik-bulag, pitikan etits, pik pak boom, boom taya taya, at plak shomelin bom bom chenelyn! (Bet ni watashi wititit ma-translate lalu ng mga mudak bekimon itey).

Bakit ba hindi ako makatulog nang hindi ko nabubuksan ang FB ko?  At kapag nabuksan ko naman, naiinis lang ako kasi puro games at walang katuturang apps ang nakikita ko. Tapos may mag aadd saken na di ko naman kilala. Tapos kapag hindi mo binigay ang number mo, ikaw pa ang isnabero. Tapos makikita mo ung dati mong kaibigan na kausap ka lagi, ka-PM, ka-YM, na bigla na lang tumaas ang tingin sa sarili mula noong naging cover girl ng FHM! Hindi na ako bumili ng FHM mula noon. Bakit ka bibili pa eh ang dami namang nagkalat sa internet!

Wait lang… (higop muna ng kape… kagat ng cheese muffin… nguya-nguya…lunok) Yan ok na ko. Go!

Kainis tong mga bebot na to sa Forever 21. Di man lang ako pinapansin! Tong koreanang nasa kanan ko naman sarap batukan eh parang may kung anong nakabara sa lalamunan at hindi mabigkas nang tama ang mga pangalan ng mga coffee variants habang umoorder.  Kung taga North Korea lang ako malamang pinaulanan ko na ito ng missiles eh! Sakit sa bangs!

(inom muna ulit… lapit na maubos ang kape ko…)

Teka, nasa page 2 na pala ako hahaha! Hindi na blangko ang pahinang ito. Wuhooo!!! Ibig sabihin nadagdagan ng ilang kilobytes ang word file na ito at nagsayang ako ng mahigit Php 200 para sa kape at muffin. Para makatambay lang dito sa coffee shop na ito.

Para makapag sulat ng isang walang kakwentan-kwentang blog entry na ito na ngayon ay binabasa ng mga taong maaaring walang alam kung mamaya ay buhay pa ba ako… =(

Are we secure?

Taking proactive steps when it comes to security issues to ensure day-to-day safety is the best approach in managing security risks in the workplace.  Just like our own homes, we all want our office to be safe and secure.  But we tend to be more lax when it comes to securing our workplace. Maybe because most of us assume that it’s someone else’s responsibility.  Again, risk management is everyone’s responsibility.

Below are the 5 basic tips I want to share with you on how can we start securing our workplaces.

Keep track of personnel.  Visitors and guests should be properly registered and should be provided with visitor’s pass. If you happen to see unfamiliar persons such as visitors walking through your office, try to determine who they are visiting by asking them if they need assistance.

Secure your access keys.  Do not share access cards or keys with anyone. Every employee has his own access card. Do not let anyone into the office with your access card after office hours.

Keep the door closed. Doors, especially those leading to restricted areas, must be closed at all times in order to prevent unauthorized persons from entering the premises.  If you happen to find a door open after office hours, close it.

Keep an eye on your valuables.  Secure all your valuables. Protect the confidentiality of the files you are processing or  storing. Make it out of sight and locked.  Utilize your drawers and file cabinets, if possible.