Suite 1503A W Phil. Stock Exchange Bldg.

(Tektite), Exchange Road, Ortigas Center, Pasig City, Philippines

Tel: +632 6874445, +632 6873416 ▪ Fax: +632 6874645 ▪ sales@.businessmaker-academy.com

EFFECTIVE TAXATION & BIR AUDIT COMPLIANCE

COURSE: Effective Taxation & BIR Audit Compliance

“The Smart & Legal Way of Working with Taxes for SMEs”

COURSE DESCRIPTION:
This seminar guides you into making informed decisions about what, when and how to do
with your taxes towards tax efficiency. Learn to compute your taxes correctly through
examples, case studies and actual preparation of tax returns. Discover the differences
between tax evasion vs. tax avoidance and their legal implications. Know what to expect
from the BIR to avoid being audited and find out how it conducts examination to enhance
audit compliance on your part.

COURSE OUTLINE:

TRACK 1: INTRODUCTION
A. The Inevitability of Taxes
B. What People Think About Taxes
C. Taxation, Defined
D. Tax as a Business Risk
E. Why Taxation Exists
F. Tax Evasion vs. Tax Avoidance
G. The BIR: Its Mandate, Goals and Programs
H. Taxpayer’s Duty and Right
I. Philippine Tax Overview

TRACK 2: INCOME TAXATION

A. Tax on Individuals
1. Gross Income
2. Allowable Deductions
3. Personal & Additional Exemptions
4. Taxable Income
5. Tax Rates
6. De Minimis Benefits
7. Optional Standard Deduction
8. Types of Individual Taxpayers
9. Tax Rates on Passive Income

B. Tax on Corporations & Partnerships

1. Normal Income Tax
a. Gross Income
b. Allowable Deductions
c. Taxable Income
d. Tax Rates
2. Optional Standard Deduction
3. Minimum Corporate Income Tax
4. Improperly Accumulated Earnings Tax
5. Net Operating Loss Carry Over
6. Income Tax Exempt Corporations

www.businessmaker-academy.com
Copyright © 2010 by Businessmaker Academy, Inc. All Rights Reserved.
Proprietary Information: Do not disclose without written consent from Businessmaker Academy, Inc.
 Suite 1503A W Phil. Stock Exchange Bldg. (Tektite), Exchange Road, Ortigas Center, Pasig City, Philippines
Tel: +632 6874445, +632 6873416 ▪ Fax: +632 6874645 ▪ sales@.businessmaker-academy.com

7. Primary Tax Incentives

TRACK 3: WITHOLDING TAXES

A. Creditable and Final Withholding Taxes
B. Withholding Tax on Wages
C. Substituted Filing of Employees’ ITR
D. Expanded Withholding Tax
E. Final Tax on Passive Income

TRACK 4: VAT AND OTHER BUSINESS TAXES

A. Value Added Tax
1. What is VAT?
2. Who is subject to VAT?
3. Mandatory registration for VAT
4. VAT rates
5. Quarterly lists of sales/purchases
6. Substantiation requirement
7. Transactions deemed sale
B. Percentage Taxes
1. What is percentage tax?
2. Who is subject to percentage tax?
3. Percentage tax rates
C. Amusement Taxes
1. Who is subject to amusement tax?
2. Amusement tax rates

TRACK 5: TAX ASSESSMENT, SURCHARGE & INTEREST

A. Definition of Assessment and Action Involved
B. How to Avoid BIR Audit (Enjoying Preferential Tax Treatment)
1. Tax amnesty
2. No Audit Program (NAP)
3. Improved Voluntary Assessment Program (IVAP)
4. Compliance - BIR compliance requirements are as follows:
a) First stage in primary registration – The application and
issuance of TIN is the first stage in primary registration;
b) Second stage in primary registration – This involves the
subsequent registration of:
1) Employment (in case of employee) – within 10 days
from employment.
2) Registration of business or profession – The certificate
of registration (COR) is issued at this point, which must
be exhibited conspicuously at the place of business
together with the “Ask for Receipt” notice and the
receipt for annual registration.
3) Regular filing of tax returns, payment of taxes and
payment of fees
C. BIR Audit Compliance
1. What to expect in audit
2. How the BIR conducts audit
3. What to do when you receive a TVN or an LOA
4. What to do when you receive a BIR confirmation request

www.businessmaker-academy.com
Copyright © 2010 by Businessmaker Academy, Inc. All Rights Reserved.
Proprietary Information: Do not disclose without written consent from Businessmaker Academy, Inc.
 Suite 1503A W Phil. Stock Exchange Bldg. (Tektite), Exchange Road, Ortigas Center, Pasig City, Philippines
Tel: +632 6874445, +632 6873416 ▪ Fax: +632 6874645 ▪ sales@.businessmaker-academy.com

D. Consequences for Non-Compliance

1. Surcharge
2. Interest
3. Compromise

TRACK 6: TAX AVOIDANCE MEASURES

A. Tax Option
B. Shifting
C. Transformation
D. Exemption
E. Handling Accruals
F. Planning Transactions
G. NOLCO (if applicable)

*Classes are inclusive of: Module Handouts, Sumptuous Lunch, Snacks, Drinks and Certificate of Completion.

www.businessmaker-academy.com
Copyright © 2010 by Businessmaker Academy, Inc. All Rights Reserved.
Proprietary Information: Do not disclose without written consent from Businessmaker Academy, Inc.