Unit 12 Session 3

8/3/2019 Unit 12 Session 3

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UNIT 12

TAXATIONTAXATIONSession 3Session 3


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Topics

Review of Last session

Test of baseline knowledgeTransactions with the BIR

Advising Clients

Calculating liabilities

ConfidentialityGo TopGo Top


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Review of Last session


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Test of baseline

knowledge


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Go TopGo Top


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Bureau of Internal Revenue (BIR)Bureau of Internal Revenue (BIR)

is an attached agency ofDepartment

of Finance.

collects more than one-half of the

total revenues of the government.


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Go TopGo Top


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The Tax PractitionerThe Tax Practitioner

Applies fiscal acumen, accounting expertise and

compliance knowledge to ensure that a company's tax-

reporting systems adhere to National and localregulatory guidelines.

Typically only work a few months during a year in order

to help people file their taxes.


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Education

Bachelors degree in accounting, auditing, taxation

orbusiness management

CPA license a plus

Masters degree in taxation Classes in business, accounting or finance can be

especially useful for this job.

Continuing Taxation Training


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SkillsSkills

Tax professionals should have exceptional math skills.Tax professionals should have exceptional math skills.

They should also be proficient in computeruse.They should also be proficient in computeruse.

Thorough knowledge of current tax laws.Thorough knowledge of current tax laws.

They must place strong emphasis on detail andThey must place strong emphasis on detail anddeadlines.deadlines.

Ability to read quickly but thoroughly is necessary forAbility to read quickly but thoroughly is necessary for

this job.this job.


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Duties

Help prepare tax returns to keep clients fromHelp prepare tax returns to keep clients from

paying unnecessary taxes.paying unnecessary taxes.

Analyze tax forms,Analyze tax forms,

Enterdata into a computer system,Enterdata into a computer system,

Performmathematical operations andPerformmathematical operations and

Submit forms to appropriate governmentSubmit forms to appropriate government

offices.offices. Helps a company conform to lawsHelps a company conform to laws andand

regulationsregulations

Ensure that employees adhere to tax rulesEnsure that employees adhere to tax rules


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Nature of WorkNature of Work

Tax professionals may work individually orbe hiredTax professionals may work individually orbe hired

by a tax preparation firm, legal office or accountant.by a tax preparation firm, legal office or accountant.

Since the tax season is between January andmidSince the tax season is between January andmid--

April, tax professionals typically are only hired

forApril, tax professionals typically are only hired

forthese few months instead of working yearthese few months instead of working year--round.round.

May have long hours, andmay be required to workMay have long hours, andmay be required to work

nights and weekends in order to get documentsnights and weekends in order to get documents

submitted in a timely fashion.submitted in a timely fashion.

Many of these professionals hold other jobs duringMany of these professionals hold other jobs during

the rest of the year.the rest of the year.


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Go TopGo Top


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Tax LiabilityTax Liability

The total monetary amount that a person or aThe total monetary amount that a person or a

corporation is legally obliged to pay to thecorporation is legally obliged to pay to the

government.government.

Also used in the context ofunpaid taxes that areAlso used in the context ofunpaid taxes that are

carried forward to the next financial year.carried forward to the next financial year.

Th

us, it can

be concl

uded

that tax liab

ility is the totalThu

s, it canb

e conclud

ed

that tax liab

ility is the totalamount of taxes payable to the taxation agencies,amount of taxes payable to the taxation agencies,

departments andbodies.departments andbodies.


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Steps in Calculating Tax LiabilitiesSteps in Calculating Tax Liabilities

Step 1: Acquire appropriate Tax Forms

Step 2: The next step is to calculate your total income for

the year. There are many points that are to beconsidered while doing so. Here's a check list that you

may follow.

Wages

Salaries

Interest received

Capital gains

Rent received

Dividend

Returns over investment


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Steps in Calculating Tax LiabilitiesSteps in Calculating Tax Liabilities

Step 3: The next step is to start the calculation of your

adjusted gross income. The adjusted gross income is

calculated by making legitimate adjustments and tax

deductions from your general gross income (a total of all

your incomes). This will give you your taxable income.

Step 4: Look for your total value of tax exemption. The

value is deducted from your income and you will receive

your taxable income.


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Confidentiality of Tax Return Information

By law, information about your tax return is strictly

confidential. This means that no one at the BIR may tell

anyone -- whether your relative, a neighbor, a reporter,

or another government employee -- anything about your

tax return or your relationship with the BIR, unless the

law allows such a disclosure.


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Tax DisclosureTax Disclosure

TaxpayersTaxpayers maymay makemake publicpublic anythinganything theythey wantwant

aboutabout theirtheir ownown taxtax mattersmatters.. ForFor example,example, youyou maymay

talktalk withwith reporters,reporters, speakspeak inin aa publicpublic forum,forum, oror eveneven

testifytestify beforebefore CongressionalCongressional committeecommittee.. TheThe BIRBIR

doesdoes notnot havehave thethe samesame freedomfreedom toto respondrespond..

TheThe lawlaw allowsallows thethe governmentgovernment toto disclosedisclose youryour taxtax

informationinformation toto anyoneanyone youyou designatedesignate.. However,However, thethe

governmentgovernment cannotcannot gogo beyondbeyond thethe termsterms ofof youryour

consentconsent.. WhenWhen aa marriedmarried couplecouple filesfiles aa jointjoint taxtax return,return, eithereither

spousespouse maymay grantgrant aa validvalid consentconsent toto disclosedisclose

informationinformation aboutabout thatthat returnreturn..


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Sources

The Fundamentals of Taxation 2009, HectorThe Fundamentals of Taxation 2009, Hector

S. De Leon & Hector M. De Leon, Jr., RexS. De Leon & Hector M. De Leon, Jr., Rex

Book Store ISBN 978Book Store ISBN 978--971971--2323--52825282--99

http://www.bir.gov.phhttp://www.bir.gov.ph

http://buzzle.comhttp://buzzle.com

http://ehow.comhttp://ehow.com


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Topics for Research

The National Internal Revenue

Code

Tax Procedure in the

Philippines

Go TopGo Top


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Required

Describe the Philippine Tax

Environment

Go TopGo Top

Documents

Unit 12 Session 3