Tax lawyer Atty. Peaches Aranas shares ideas about paying the right taxes

The right mindset can help taxpayers comply with tax obligations diligently and appropriately

The Bureau of Internal Revenue (BIR) has become more aggressive in pursuing tax violators, whether businesses or individuals. Why is it difficult for many companies and individuals to comply with the requirement to pay the correct taxes?

Veteran tax and business attorney Ma. Louella ‘Peaches’ M. Aranas, there should not be any problem if organizations and individuals comply with this duty to the nation diligently and properly.

“It has been said, ‘Taxes are the backbone of a nation’s life.’ To put that in context, our bodies will not function properly and we may die if we do not have enough blood to enter our system, which carries oxygen and nutrients to different organs,” Atty. Peaches began to explain.

“Without taxes, the various government agencies will not work properly, and government services will not be provided to the people. Facilities and basic needs [services] will not be found; roads and airports will not be built; we will not have police or firemen to protect lives and property. We will not have teachers to teach children, we will not have doctors, dentists and nurses to take care of our physical health,” he continued.

Taxation and civilized society

He said. Peaches also means that taxes are paid by citizens so that they can live in a civilized society. “Without taxes, the nation will suffer and perish,” he adds to emphasize the importance of complying with this obligation. At the same time, the tax lawyer reminds that paying the right amount of tax is the key to avoid problems with tax collectors.

Employees rarely have tax problems as income taxes are automatically deducted from their wages. Traps are discovered by businesses and individuals who voluntarily pay taxes on their own.

“I advise businesses to comply with the requirements of the law and most importantly to pay the correct tax. I believe it is beneficial for businesses to work with their tax attorneys to ensure they are in compliance with the law. As an official audit, it is recommended that companies review the tax every year,” he advises. Logically, this idea also applies to high tax payers.

Resolving tax disputes

Until now, among the most persistent tax problems faced by companies and even individuals is the BIR’s imposition of additional income based on the agency’s own earnings. In such cases, more income means more tax to be paid. This often creates a shortfall in the taxes claimed by the BIR.

He said. Peaches reminds everyone that the law is always there to guide and support taxpayers, even those facing problems with the BIR. “I believe that tax payers must use the remedies provided by the law. This includes a remedy in court. “If the BIR makes a wrong or erroneous tax decision, I agree that this should be challenged before the Court of Tax Appeals,” he explained.

He said. Peaches is the Founder and Managing Partner of LMA Law, a law firm specializing in tax and corporate law. He is also the Founder and CEO of Alternative Center for Continuing Education and Seminar Solutions, Inc. (ACCESS), a pioneer in online and in-demand Mandatory Continuing Legal Education (MCLE) programs in the country. At the same time, he is a faculty member of the Lyceum of the Philippines University College of Law, where he teaches tax laws.

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