MY PROBLEMS ARE GAAP, GAAS AND PFRS. WOULD YOU LIKE TO HELP?

TAX PROBLEM IS THE GAAP/PFRS FINANCIAL STATEMENTS???

In 2006, The National Society of Accountants in the United States of America issued a very relevant statements, "THE COST OF PREPARING GAAP-BASED (now, PFRS) FINANCIAL STATEMENTS IS EXCESSIVE AND IN MANY CASES UNNECESSARY. TRANSLATING TAX RETURN INFORMATION INTO A FINANCIAL STATEMENT FORMAT CAN BE A COST EFFECTIVE STRATEGY”

Because of it, Katax.ETM facebook requested the BIR Commissioner, Ms. Kim Henares, to confirm if for 2012 and succeeding years, the TAX-BASED FINANCIAL STATEMENTS shall be used by him.

On July 31, 2012, she replied, “WITH THE REPETITION OF THE PHRASE ‘FOR INTERNAL REVENUE PURPOSES” AND WITH THE ISSUANCE OF THE REVENUE MEMORANDUM CIRCULAR Nos. 44-2002 AND 22-2004, IT CAN BE INFERRED THAT THE TAX CODE IS ALSO CONSIDERING AND ACCEPTING THAT THERE MIGHT BE OTHER ACCOUNTING STANDARDS THAT MAY BE MANDATED BY OTHER INSTITUTIONS FOR FINANCIAL REPORTING PURPOSES. FOR EXAMPLE, THE PFRS MANDATED BY SEC SHALL NOT GIVE RISE TO A VIOLATION AS LONG AS FOR INCOME TAX REPORTING, THE TAXPAYERS ARE ABIDING WITH THE TAX CODE AND IF THERE WILL BE DIFFERENCES AND CONFLICTS IN TAXABILITY OF INCOME AND DEDUCTIBILITY OF EXPENSES BETWEEN WHAT IS CONTAINED IN THE TAX CODE, AND THAT OF OTHER STANDARDS APPROVED AND ADOPTED BY THE ACCOUNTING STANDARDS COUNCIL, THE TAX CODE SHALL PREVAIL”

Alarming and intriguing, the above reply is somewhat contradictory to the national policy of the State.

As Katax.ETM facebook knew, the Supreme Court's decisions and rulings are considered the laws of the State. And, in numerous resolutions that it made, it says that the tax accounting and financial accounting serves two difference purposes and for tax purposes the tax accounting should be implemented and utilized not only by the BIR but most importantly by the taxpayers.

Katax.ETM facebook do not understand the logic and justification of the good Kim why she is still pushing for the use of GAAP/PFRS financial statements when the framers of the said accounting approach had already issue a material statement that GAAP/PFRS is costly and sometimes, useless.

Why she is keep telling Katax.ETM facebook that he must still use a useless and costly accounting system or report if there is a tax accounting that is relevant and material not only in the eyes of the Philippine Government but also to foreigners.

Unconfirmed reports reached Katax.ETM facebook that some BIR officials are partners/owners of auditing/law firms that would be greatly affected if the tax accounting financial statements shall be pursued by 17,500,000 taxpayers of the Philippines.

To presume is irregular. If a person started to 'infer' or use the words 'might' or 'could', he/she is starting to assume which according to the law of the State, presumption as no place in interpreting/applying a law.

Katax.ETM facebook is too bothered about the statement of CIR Kim for it contradicts Sections 4, 257(b)(3) and 245(g), National Internal Revenue Code, as amended.

The repetition of the term 'FOR INCOME TAX PURPOSES' shall mean that the Congress or the People of the Philippines is commanding, ordering and instructing the BIR to require all taxpayers to file tax based financial statements for INCOME TAX PURPOSES. Katax.ETM facebook that to meddle with other government agencies duties and functions is called 'usurpation of authority' or 'abuse of power'. BAKIT AYAW KAYANG GAWIN?

The recording and recognition of business transactions for financial accounting purposes, in a majority of situations, differ from the application of tax rules on the same transactions resulting to disparity of reports for financial accounting vis-a-vis tax accounting (RR -2007). In case of differences, the provisions of the Tax (accounting) Code shall prevail (RMC 22-2004). Therefore, it is the financial statements which is in conformity with the Tax (accounting) Code that should be attached in the filing of Income Tax Return (BIR Ruling No. M-111-2006).

Use the useful and inexpensive Tax-basis Financial Statements so that the BIR, in June/July 2013, would not audit/examine your 2012 return and audited financial statements.

FREE 'BIR-COMPLIANT' BOOKKEEPING SOFTWARE. Please call/text Dian 0906-400 7733 or Len 0922-862 0922 for a copy. No product or service to buy. To Dian/Len, please request them to email their intention and contact details.

As a privileged communication, this shall be read as Katax.ETM facebook's personal conviction and belief.

Salamat po.