Saving income tax, Taxpayer University teaches

Описание: So many NonVT-registered taxpayers earning P3,000,000 and below wanted me to give them my professional opinion which among the three regimes of income taxation is the best to for them. Also, they asked me persistently to explain why my recommendation is the most economical and beneficial to them. To make them happy and satisfied, I will be releasing a video. I will discuss the gross income taxation (GIT), optional standard deduction (OSD) and allowable itemised deduction (AID). Finally, I will not only present how to lessen their taxes substantially but also how we can make the management of the BIR to be disinterested in issuing them a BIR's letter of authority. Kindly email this message with the picture below to 100 people and then, subscribe today. Thanks. All approved offers for compromise settlement shall be paid in full immediately upon receipt by the taxpayer of the Notice of Approval. In case the taxpayer fails to comply with the immediate payment thereof within the set deadline, the approved offer for compromise settlement shall be automatically revoked, and the amount due from the taxpayer shall be reverted to the original assessment plus delinquency increments. On the other hand and on a case to case basis, the taxpayer with approved offer for compromise on the ground of financial incapacity may be allowed to pay the approved offer on installment basis, subject to the approval of the NEB.

12. Compromise settlement of a tax liability may be set aside by reasons of fraud, mistake, violence or coercion.

13. A compromise agreement between the taxpayer and the BIR that was properly entered into is binding and enforceable.

14. The evaluation of the offer due to doubtful validity of the assessment shall be made on a per tax type basis. On the other hand, evaluation of offer for compromise on the ground of financial incapacity need not be made on a per tax type basis, considering that the evaluation thereof is limited to the determination of the financial capacity of the taxpayer in paying the tax liabilities.

Under the NIRC of 1997, as amended, and various judicial rulings,the Commissioner of Internal Revenue is authorized to abate or cancel a tax liability when any of the following conditions is present:

When the filing of the return/payment of the tax is made at wrong venue;

When the taxpayer’s mistake in payment of his tax is due to erroneous written official advise of a revenue officer;

When taxpayer fails to file the return and pay the tax due on time due to substantial losses from prolonged labor dispute, force majeure, legitimate business reverses such as the following instances, provided that the abatement shall only cover the surcharge and the compromise penalty and not the imposed interest:

Labor strike for more than six (6) months which has caused the temporary shutdown of the business;

Public turmoil;

Natural calamity such as lightning, earthquake, storm, flood and the like;

Armed conflicts such as war or insurgency;

Substantial losses due to fire, robbery, theft, embezzlement;

Continued losses incurred by the taxpayer for the last two (2) years;

Liquidity problem of the taxpayer for the last three (3) years; or

Such other circumstances which the taxpayer may deem analogous to the enumeration above.

When the assessment is brought about or the result of taxpayer’s non-compliance with the law due to a difficult interpretation of the said law;

When taxpayer fails to file the return and pay the correct tax on time due to circumstances beyond his control, provided that the abatement shall only cover the surcharge and compromise penalty and not interest;

Late payment of the tax under the following meritorious circumstances:

One day late filing and remittance due to failure to beat bank cut-off time;

Use of wrong tax form but correct amount of tax was remitted;

Filing an amended return under meritorious circumstances, provided that the abatement shall only cover the penalties and not the interest;

Surcharge erroneously imposed;

Late filing of return due to unresolved issue on classification/valuation of the property (for capital gains tax, etc.);

Offsetting of taxes of the same kind (i.e. overpayment in one quarter/month is offset against underpayment in another quarter/month);

Automatic offsetting of overpayment of one kind of withholding tax against the underpayment of another kind;

Late remittance of withholding tax on compensation of expatriates for services rendered in the Philippines pending the issuance of the Securities and Exchange Commission of the license to the Philippine branch office or subsidiary, provided that the abatement shall only cover surcharge and compromise penalty and not interest;

Wrong use of the Tax Credit Certificate (TCC) where the Tax Debit Memo (TDM) was not properly applied for; and

Such other instances which the Commissioner may deem analogous to the above enumeration.