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Amazing to learn the latest approach of the BIR in examining the records and returns of IMPORTERS.

On the other hand, there will be non declaration of expenses. Thus, understatement of sales and payments of value added and income taxes. INVENTORY LIST. The past and present inventory list shall be utilized primarily to determine the ratio or components of imported and local goods in the costs and expenses which is a powerful tool to check if the amounts of the smuggled or illegal goods are deliberately classified under the local purchases category in the 2550Q and income tax return and audited financial statements. AUDITED FINANCIAL STATEMENTS. The gross profit ratio can be established in the audited financial statements which means that a gift is handed over to the importer. By accepting unsubstantiated costs and expenses using ratio and proportion is to allow importers to get away with one of the requirements of the State. Some says that to use gross profit rate to reduce the value added and income taxes. Thus, in short, it is a form of tax shelter or incentives because it permits them to continue smuggled goods and deprives the State to collect the true and correct amount of taxes. ETM admired the report of findings of the BIR for it totally disallowed the importation for failure of the importer to pay the BOD duties and taxes but good for him, no assessment was issued for failure to pay BOC duties and taxes.

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ETM BELIEF AND CONVICTION

Acceptably, gross sales and receipts derived fro illegal activities are subject to value added and income taxes while the costs and expenses directly related to the conduct of illegal trade are non deductible therefrom. Unfair? Unacceptable? Making an illegal income is subject to taxation because there is no law prohibits the State not to tax them and a tax return is a the best evidence to prove illegal activities. An illegal expense is not allowed as a deduction from legal or illegal income because act and its fruits executed against the laws of the State is considered VOID ab initio and by consenting it to be an allowable deduction is to permit the proliferation of illegal activities. ETM will divulge and explain the newest and invigorating BIR audit techniques which would pin down most of the importers. Here are they. Without going to the importers principal places of business, BIR shall only secure from its own files the following, viz; 1. past and present inventory list, 2. audited

N PLA T CRE ERS SE T BIR POR Unconfirmed reports say that a BOC-BIR R IM O agreement is in the making wherein the BIR would F
financial statements, 3. income tax return - 1701/1702 be allowed to assess BOC duties and taxes and later on, would pass on the same to BOC for the continuance of the investigation. ETM advises importers that 2550Q should always be near the amount of the transactional value stated in the EID so as not to attract tax troubles. Enroll at the SCHOOL FOR TAX ACCOUNTANTS which is similar to HRBlock of United States of America and learn to correctly apply the laws of the State. Please be reminded that to extinguish legal obligation is paramount that to follow other types of accounting approaches. Classes start in August 2011. Only 40 will be accepted. For reservation please call Len 0922 862 0922 or Sonia 0922 863 0922 / ask@maestrotaxation.org 50% discount on ETM PF on TAX DEFICIENCY REDUCTION TECHNIQUES AND TIPS CONSULTATION. Valid until July 16, 2011. Always visit explainingtaxmistakes.com for tips and tax updates. Thank you. A privileged communication. Not a legal evidence.

4. value added tax returns - 2550Q, and 5. since the BOC and BIR have computer linkages, import entry declarations. 2550Q versus IMPORT ENTRY DECLARATION. The amount in the box IMPORTATION of four quarters of 2550Q shall be added up and compared to IED for the same year. If the 2550Q figures are higher than BOC IED, then, there is a presumption that import duties and taxes for the difference were not paid. Thus, not paying the true and correct BOC duties and taxes makes the goods as smuggled or illegal ones. Therefore, amounts associated thereto cannot be allowed as deductions from gross sales and receipts. Thereby, overstating the costs of sales, depreciation, and admin expenses, and understating the payment of income tax.