HIGHLIGHT
1, Tax-basis Financial Statements. 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 8-2007). 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).
LEARNING OBJECTIVES
1, to remove self/client from being so dependent on the advises of external CPAs, lawyers, influence-peddlers, consultants and the likes who are pretending to be competent
2, to know the peculiarities and similarities of tax accounting, financial accounting and managerial accounting
3, to understand why tax accounting is superior over financial accounting and managerial accounting
4, to grasp/explain the applicable tax rules, regulations and doctrines
5, to evaluate the existing accounting policies and practices
6, to develop accounting procedures in tune with the regulatory requirements
7, to figure out the favorably uses of the three (3) layers of tax accounting
8, to prepare, maintain, store and retrieve all admissible source documents
9, to identify which evidences are either for internal use only/confidential or for external/BIR/public purposes
10, to design/use all understandable tax accounting titles/names
11, to make the correct and on-time accounting entries in the books of accounts
12, to prepare and produce relevant returns, reports, lists, statements and schedules
13, to submit the required returns and reports on time and at the appropriate BIR-office/s
14, to collect, collate and comprehensively connect all legal information
15, to avoid any BIR attempt in criminally prosecuting and public humiliating self/client
16, to prevent the payment of fines, surcharges, interest and penalties
17, to identify/solve all tax problems
18, to identify/profit from tax advantages/opportunities
TOPICS FOR VALUE ADDED,
WITHHOLDING AND INCOME TAXES
1, Understanding the Taxation-Terminologies
2, Developing a Chart of Accounts
3, Picking an Accounting Period/s
4, Choosing an Accounting Method
5, Designing the True/Correct Entries
6, Updating the Prescribed Books of Accounts
7, Preparing the Applicable Tax Returns
8, Producing the Required Reports, Schedules, Lists and Statements
9, Drafting the Tax-Basis Financial Statements and the Required Disclosures
10, Identifying the Tax Advantages and Disadvantages
11, Substantiating all Interpretations/Recommendations
12, Supporting all Facts with Laws of the State
13, Engaging in Tax Planning/Strategies
14, Migrating from Tax Accounting to Financial/Managerial Accounting
COMPETENCE PROFILE
1, Be able to identify problems having brought by the use of financial accounting and managerial accounting
2, Be able to correctly and timely apply the specific and available tax accounting solutions
3, Be able to understand the tax accounting rules, regulations and doctrines in a situation
4, Be able to recognized the tax/legal problems/issues in a business scenario
5, Be able to identify the legal options and do appropriate choice/s
6, Be able to critically apply the relevant tax laws and the rules issued under their authority in a situation
7, Be able to select a structure that would protect self/client from BIR’s criminal prosecution
8, Be able to provide recommendations to maximize after-tax profits
9, Be able to acquire a general recognition of admissible evidences, relevant tax forms and material reports, lists, schedules, notes and statements
10, Be able to collect any legal information
11, Be able to prepare/draft all necessary notes and disclosure
12, Be able to work in high level tax accounting practice
13, Be able to engage in tax planning and strategies in an collaborated structure
14, Be able to design and develop all admissible source document
15, Be able to maintain/store/retrieve all important documentary requirements
16, Be able to make the true/correct entries in the appropriate books of accounts
17, Be able to communicate the entries in the books of accounts through the use of BIR Forms and required reports, schedules, lists, statements and the likes
18, Be able to communicate information, relatively complex idea in a clear and comprehensive manner
19, Be able to conduct research and convey results
20, Be able to substantiate with facts and laws any conclusion and suggestion.
10 IMPORTANT THINGS TO REMEMBER
YOU CONSCIOUSLY AGREE AND ADOPTED THAT
YOU SHALL EXERCISE HONESTY, PUNCTUALITY AND OBEDIENCE
EVERYTHING THAT GOVERNS THE EVENT IS SUBJECT TO CHANGE WITHOUT NOTICE AND OBLIGATION
KATAX’S RESOLUTION IS SUPERIOR TO ANY TYPE OF RESOLUTIONS, ORDERS, DECISIONS, INSTRUCTIONS, DEMANDS, NOTICES, ETC.
THE TERM ‘KATAX’ SHALL LEGALLY MEAN TO BE EMELINO T MAESTRO AND HIS EMPLOYEES, COMPANIES, CONTRACTORS, BUSINESS ASSOCIATES, AND THE LIKES
THE LECTURES, STATEMENTS AND EVERYTHING TO BE DISCUSSED, SHOWN AND PRESENTED IN THE EVENT ARE LEGALLY CONSIDERED TO BE A PRIVILEGED COMMUNICATION AND KATAX’S BELIEF AND CONVICTION
YOUR FAILURE TO APPEAR AND ATTEND THE EVENT SHALL FORFEIT YOUR PAYMENT
YOUR PAYMENT IS NON REFUNDABLE AND CANNOT BE APPLIED TO ANY SUBSEQUENT EVENTS AND SERVICES BEING OFFERED BY KATAX
THE ASSIGNMENT OF YOUR SEAT TO ANY PERSON (WHO MUST BE ACCEPTABLE TO KATAX) MUST BE DONE THREE DAYS BEFORE THE EVENT VIA EMAIL AND ATTACHING THERETO THE PICTURE, NAME, MOBILE NUMBER AND EMAIL ADDRESS OF YOUR ASSIGNEE
NOT ONLY THAT ALL DAMAGES APPURTENANT TO YOUR ACTIONS DURING THE EVENT SHALL SOLELY BE FOR YOUR PERSONAL ACCOUNT BUT ALSO YOU’RE RELIEVING KATAX FROM ANY TYPE OF DAMAGES ASSOCIATED THERETO
ALL THE EVENT’S RULES/REGULATIONS MUST BE ABIDED
YOUR VAT OFFICIAL RECEIPT MUST BE ASKED/REQUESTED
WORKING OUTSIDE OFFICE CONTRACT (WOOC)
GENERAL PURPOSE. The primary objective is to define, specify and prescribe the policies and guidelines in handling opportunities and solving problems directly related to an an employee who is either working outside office, away from office or from home.
DEFINITION. When used herein, the following terms shall have the following legal meanings.
Employee refers to an individual who has a valid Working Outside Office Contract
Employer means ETM TAX AGENT OFFICE
Working Outside Office means that the relevant office job, work, activity, report, and the likes which are usually executed inside an office space are consciously and competently planned and performed other than the place/s of office/production of the employer
Person means an individual, trust, estate, corporation, partnership, joint venture, local government, national government, government-owned and controlled corporation and the likes regardless of organizational structure and whether regularly registered or not.
ETM refers to Emelino T Maestro and his business, corporations, groups, associates, projects, programs, immediate families and relatives, and staff
Quota refers to a periodic and expected amount of sales or number of people required to be present in an event
Taxpayer refers to existing and potential customers and clients
Product means the books, position papers, seminars, trainings, workshops, tax accounting, tax consultancy, franchising, space rental, and others as hereinafter included and identified
Commission refers to an amount in Philippine Peso (peso) as a payment to a work achieved and performed satisfactorily and successfully.
Compensation means a salary, a wage, a renumeration or an income payment and other fringe benefits provided by law or as agreed upon.
Benefit refers to allowances, de minimis and other perks and privileges that an employer would supply to his employee. As it is a prerogative/right, the employer may suddenly suspend, withhold or stop its implementation with or without explanation, cause and justification.
Satisfactorily and successfully means within the rules and/or concurrence/acceptance of ETM
Event refers to a seminar, course, workshop or training
QUALIFICATION.
Able, willing and interested to work outside the usual place of office
Age, gender, educational attainment, skill, experience and the likes restrictions are suspended
APPLICATION FORM.
A resume’ having not limited his/her complete name, mobile number, postal address, Taxpayer Identification Number (TIN), email address, and 2 x 2 current picture shall be sent via email to kataxpayer@gmail.com.
Once qualified,
duly accomplished BIR Form No. 2305 for currently/previously employed
previous employer’s BIR Form No. 2316 for currently/previously employed
duly accomplished BIR Form No. 1902 for fresh graduate or has no TIN
NSO Certified Birth Certificate of Dependents
Marriage Contract for married individual
Barangay’s Certificate
House/Home Location
Good Moral Character
NBI Clearance
SSS ID or relevant document
PhilHealth ID or relevant document
PAG-IBIG ID or relevant document
List of equipments to be used/utilized
Detailed description of work to be performed/pursued diligently
Selling/marketing methods and approaches to be undertaken
CORE FUNCTION.
Know the ETM-product
See a lot of taxpayer
Ask all of them to buy
Use common sense
WORK DESCRIPTION.
Understand the product that is being offered to the taxpayer
Develop business relationships therewith
Explain the benefits of the products/services being offered
Solve/resolve simple problems related thereto
Market and sell the product either by phone, social media, email, snail mail, flyer, etc.
Sell and secure order/commitment
Submit orders to ETM
Search for more leads, contacts and prospects
Prepare clear and complete proposals
Supply ETM with written reports on taxpayer’s needs, concerns, interests and problems
Protect and defend the brand ‘ETM’ and its product
Participate in all aspect of selling, marketing and promoting ETM and its product
COMPENSATION. An employee is entitled to receive a guaranteed 20,000 pesos salary a month
DE MINIMIS BENEFIT. An employee may be entitled to the following, viz;
13th month pay
Healthcare insurance not to exceed 75,000 pesos
Monthly rice subsidy not to exceed 1,500 pesos
Monthly laundry allowance not to exceed 300 pesos
Monthly mobile allowance not to exceed 300 pesos
Monthly school allowance for dependent/s not to exceed 2,000 pesos
Scholarship grant for dependent/s
SSS contribution
Pag IBIG contribution
PhilHealth contribution
This may be provided if for three (3) consecutive months, an employee reached/exceeded his quota.
At the option of the employer, additional benefits may be included herein.
COMMISSION. An employee is entitled to a 10% commission in excess of the quota.
VACATION TRIP INCENTIVE. A three-day-and-two night vacation trip to any tourist spot in the Philippines. Provided, that the employer shall have the last say about the date, time and place where an employee and his/her group shall go.
An employee may bring at least three individuals who may accompany him/her during the trip.
The following shall be included therein, viz;
10,000-peso pocket money for food, fare and recreational activities
5,000-peso allowance for house/hotel accommodation
plane/ship/bus ticket fare going to the point of entry to first destination to point of entry
The vacation trip shall be known/scheduled three (3) months prior to the actual dates.
It may be converted into cash for an amount not more than 15,000 pesos
This may be claimed if for three (3) consecutive months, an employee reached/exceeded his quota.
QUOTA.
An employee is required/mandated to reach/exceed a monthly quota of 250,000 pesos which may be adjusted by the employer from time to time
The term ‘quota’ refers to the total amount collected from participants who have been encouraged to attend a particular event and sales of other products and services being offered by ETM to the taxpaying public
No excuses or alibis, with or without justifiable reason, are allowed/permitted.
Failure to reach/exceed the set forth amount shall result in a separation from employment
This shall be considered for all legal purposes and intent as a resignation letter and quit-claim notice from the employee who signed hereunder.
CLAIMING OF COMMISSION AND/OR INCENTIVE. An employee shall present relevant and admissible documentary evidences that he/she had successfully reached/exceeded his/her quota
within five (5) days before and after the scheduled event
in the sale of books and other products, within three (3) days from the close of the month
CONCURRENT EMPLOYMENT. An Agent turned into an employee is not required to resign or be separated from his/her existing employer/s or closed down his/her business/es. He/She can still maintain and operate either his/her existing business operations and/or keep his/her employment with by other employer/s.
TAXES AND LICENSES. Commission, de minimis and other incentives include the creditable withholding tax. The withholding tax shall be deducted therefrom
SECURITY OF ASSETS AND CONFIDENTIALITY INFORMATION. Asset/s that is/are owned by the employer shall always be maintained and kept in an acceptable working condition/s. Acquired/provided information shall be handled confidentially. An employee shall take all essential precautionary actions to secure, protect and kept such information confidential and privileged.
EQUIPMENT AND OFFICE PARAPHERNALIA. Employer-owned equipments and office supplies shall only be used for the purposes that they are intended and cannot be used for personal thing. All of which shall be returned to the employer at the end of the contract. Otherwise, the amount appurtenant thereto shall be deducted from the unpaid compensation of the employees. If the amount is insufficient to cover or recover the acquisition costs of the said equipments and supplies, the employer may take appropriate legal action/s.
COMMUNICATION. The employee may be contacted within 8am -5pm from Monday to Saturday and shall make him/herself available for any question, clarification and personal meeting that would enhance and improve his/her business relationship with the employer and increase his/her sales and thus, his/her income
INJURY, LOSS OF PROFIT/OPPORTUNITY AND MISUNDERSTANDING. The employee voluntarily relieved the employer from criminal/civil damages for sustained physical, mental and emotional injury, lost of profit/opportunity and misunderstanding that this may bring.
DISPUTE RESOLUTION. The employee voluntarily adhere that the rules, notices, communications, decisions, resolutions and the likes issued or to be issued by the employer shall be superior for all legal proceedings to any rules, notices, communications, decisions, resolutions and the likes issued or to be issued by any person.
TERMINATION/RESIGNATION. Without notice and obligation other than specified herein, this shall automatically be terminated/cancelled at the option of ETM
RULES GOVERNING RULES. Rules applicable and relevant herein shall be strictly observed, applied and respected. An employee
must read the understand the rules and policies of his employer by way of reading and understanding them through taxpayerclub.blogspot.com.
should abreast with the tips and techniques in selling and marketing ETM-product by way of viewing videos shown at Kataxpayer Channel @ YouTube.
shall learn taxation and its rules by way of reading and understanding tips and techniques posted in Katax.ETM facebook.
SIGNATURE. I personally affix my true signature to attest that I have read and understood the conditions set out in this Working Outside Office Contract (WOOC) and am confirmed my acceptance of its terms.
The term ‘Signature’ means that the employee voluntarily agreed, adopted and accepted all terms herein as well as their succeeding updates, upgrades and amendments.
RETURN TWO COPIES. Please return twin copies hereof including the required attachments via registered mail or personal delivery to Ms. Divine Grace Fresco/assigned person for approval at the address shown below.
PAGES. As a privileged and legal communication, this has five (5) pages.
UPDATED on June 17, 2013 at Unit 419, Corporate 101, Mother Ignacia, Quezon City
To: ________________________________
_________________________________
MERRY CHRISTMAS. …… ……..
Mr Cesar Milan (The Dog Whisperer) said 'BECAUSE DOGS ARE ALREADY HAPPY TO BE TREATED LIKE DOGS, DON'T TREAT THEM AS HUMAN BEINGS.'
Because you’re elevating government officials from servants to Saints, applying that statement to your situation will be something like this, ’REVENUE OFFICERS ARE SATISFIED TO BE TREATED AS PUBLIC SERVANTS, DON'T TREAT THEM AS YOUR MANAGERS, INVESTORS, CREDITORS AND VERY IMPORTANT PEOPLE.'
To be a Master of these Servants, you need to understand their dialect and behaviours which you will be using to order them to sit, stand, walk, run, roll, bark, etc. (To feel now that you're in CONTROL of them is a very WONDERFUL feeling.) You can't do these things if you continue to ignore Katax EmelinoTMaestro's invitation for you to be a People-Helping Professional. Please click the link to know if you are qualified to be his SCHOLAR. http://kataxclub.blogspot.com/2014/11/tax-case-handling-literary-opportunity.html Remember that seats are so limited.
The set forth due date for the no-obligation and no-fee-to-be-collected registration is on December 15, 2014. The classes for the Tax Accounting Literacy Program (TALP) and the Tax Case-Handling Literacy Opportunity shall start in January 2015.
Katax dreams that PEOPLE-HELPING PROFESSIONALS who shall be called Para-CPA, Para-lawyer, Para-TaxAgent, etc. shall bridge and satisfy the needs of all the disoriented taxpayers. THIS IS ITS BEGINNING.
For more details, visit facebook.com/KATAXPAYER, KATAXCLUB.BLOGSPOT.COM, facebook.com/EMELINOTMAESTRO. You may share this info to others. T#02-9216107 and 02-4393918 M#0922-8010922 and 0998-9793922What the ‘Our Lady of Fatima and De La Salle Universities’ have in common?
Some say, ‘They are run by religious persons.’ Other says, ‘Simple, they’re both schools.’ If you share the same thoughts, then, you’re part of the general public who can only see the cover and not the context.
Fatima and DLSU are both ‘Opportunity-and-Hope-Giving’ schools.
When a friend flunked the CPA board exams, he was totally devastated and his self-worth shrunk to the lowest. He thought of himself as a second class person and not worthy of getting a high paying job. So, he was satisfied to getting, as the Japanese called it, the most dangerous, dirty and difficult job for a compensation that does not commensurate it.
Katax EmelinoTMaestro believes that similar cases should not be viewed as a way to hopelessness and self-degeneration. He thinks that it’s a start of a better opportunity than having been called and recognised as a professional by people whom you’ve never met and known personally.
You must FEEL HOPE to SEE OPPORTUNITIES.
Click http://kataxclub.blogspot.com/2014/11/tax-accounting-literacy-program.html to see what are your opportunities now.
Because Katax is developing PEOPLE-HELPING PROFESSIONALS who may be called Para-CPA, Para-lawyer, Para-TaxAgent, etc., YOU could be the next Katax’s Scholar. This is your calling. This is your business. This is you. Lastly, THIS MAY BE THE HOPE AND OPPORTUNITY THAT YOU ARE LOOKING FOR.
For more details, visit facebook.com/KATAXPAYER, KATAXCLUB.BLOGSPOT.COM, facebook.com/EMELINOTMAESTRO. You may share this info to others. T#02-9216107 and 02-4393918 M#0922-8010922 and 0998-9793922
Success Story of an Insurance Agent
by FACEBOOK.COM/EMELINOTMAESTRO
You will be so curious what an Insurance Agent did not only to his clients but also significantly, to himself. This Agent just like the majority Agents in the insurance industry was struggling to having a decent living and meet his monthly family needs. Although a substantial discount on the insurance premiums, by way of sharing his commission, had been laid down on the table but most of his potential clients are turning down his insurance offers. Their excuses can be lumped sum into 'no budget'. In other dialect, no cash is available to pay for the premium. When he asked them, ‘WHERE DID THE CASH GO’, they sadly replied, 'Reserved either to BRIBE A REVENUE OFFICER or to PAY THE DEFICIENCY TAX THAT THEY DON'T UNDERSTAND. Sensing an opportunity to do an important thing for his survival, he challenged his clients that if he can untie the MONEY for the purposes of bribing and paying a deficiency tax, the portion thereof must be used to buy an insurance policy from him. His success is spelled in two (2) words, ‘It works.’
Now that you’re feeling that your pocket is calling your 50,000 pesos commission, register now as a Katax Marketing Agent by way of placing your name, mobile, email address and the word ‘Agent’ in the box ‘Write a comment…’ of facebook.com/Kataxpayer. So, ETM can start teaching you the techniques in selling the services of ETM Tax Agent Office that handles
Letter of Authority
Letter Notice
Subpoena Duces Tecum
Warrant of Garnishment
Preliminary/Final Assessment Notice
Formal Letter of Demand
Tax Evasion Case
Many more….
Hear what these TAX Quotes are telling you ….
“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 - Finance Secretary Margarito Teves’
“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 - BIR Chief Kim Henares.’
‘The cost of preparing generally accepted accounting principles basis financial statements is excessive and in many cases unnecessary. Translating tax return information into a financial statement format can be a cost effective strategy - The National Society of Accountants in the United States of America.’
‘Therefore, it is the financial statements which are in conformity with the Tax Code that should be attached in the filing of income tax return - BIR’s Legal Service Commissioner, Mr James Roldan’
If you’re personally attached to your existing financial reporting standards and you can’t see the beauty that the tax accounting rules will do for you, the next best thing to do is to hear and then learn, and understand and then, apply the tax accounting rules and regulations. The purpose of which is to level up your performance and compliance at par with the knowledge of any revenue officer and avoid emotional entanglement with them.
In this view, EmelinoTMaestro.com is much willing to conduct a three-hour seminar entitled ‘INTRO TO TAX ACCOUNTING’.
facebook.com/Kataxpayer is offering this seminar FREE OF CHARGE and FREE MEAL if you’ll rob elbows with other attendees in a hotel. Just invest in the reference materials (book) that you will be reading aloud during the seminar and forevermore. He also accepts an in-house training for your not less than ten employees. Again, the training is FREE, just invest in the reference materials (book).
For details, please email
or post your concerns at
“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 - Finance Secretary Margarito Teves’
“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 - BIR Chief Kim Henares.’
‘The cost of preparing generally accepted accounting principles basis financial statements is excessive and in many cases unnecessary. Translating tax return information into a financial statement format can be a cost effective strategy - The National Society of Accountants in the United States of America.’
‘Therefore, it is the financial statements which are in conformity with the Tax Code that should be attached in the filing of income tax return - BIR’s Legal Service Commissioner, Mr James Roldan’
EmelinoTMaestro.com can't blame you if your personal attachment to the Financial Standards and Principles is too strong and too tight. And, you can't be stopped from using them in preparing your books of accounts and financial statements.. Don't worry. Because by doing so, it's common and you don't have a contagious disease. However, you have a very serious problem that may increase your chances of being BIR investigated this year.
If you can't be stopped in using and issuing PFRS/GAAP basis financial statements, the BIR expects you that you will perform what you stated in the so-called 'STATEMENT OF MANAGEMENT'S RESPONSIBILITIES'. Because upon signing it, you bound yourself to have a reconciling book of accounts where the disparities and differences between your PFRS/GAAP (financial standards and principles) and the TAX ACCOUNTING RULES are recorded, reconciled, explained and kept.
If you don't have a reconciling book of accounts and don't know the ways in reconciling your PFRS/GAAP entries versus TAX ACCOUNTING ENTRIES, don't worry so much because www.facebook.com/Kataxpayer will help you extinguish your legal obligations to the Bureau of Internal Revenue.
According to the BIR Chief, the purposes of using the Tax Accounting Rules are to (1) avoid troubles and irritations between you and the revenue officers examining your tax returns and financial statements, and (2) help and assist the revenue officers to easily understand your books of accounts and the accounting entries therein.
In this view, there will be a TAX ACCOUNTING SHORT-COURSE to be held this month and you, including your friends and employees, are cordially invited to attend.
For the first 100 participants, the three-session event has an investment cost of 1,000 pesos plus 12% VAT. However, references materials, books and snacks to be used therein are optional to be bought.
Share, Register and Pay Now.
02-921 6107
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