A ‘hotter’ tax season

Published April 9, 2019, 12:00 AM

by manilabulletin_admin

Wilma I. Miranda
Wilma I. Miranda

While in the midst of a busy season I have to write this article to meet my deadline. It has been a gruelling season for the past weeks, what with the “birth pains” of implementing for the first time the annual requirements of the TRAIN Law. The tax forms for instance has been waited on by taxpayers, the final form of which was just released last month. It could be such a stressful situation too on the part of the Bureau of Internal Revenue (BIR) to be responding to queries on when the final form will be released just as it is stressful on the part of the accountants and the taxpayers to be waiting on it, to be able to finally file and meet the deadline. There were also issues on the new TRAIN Law which taxpayers need to clarify.

Our accounting profession particularly the public practice profession, is one that is used to a busy season like the tax season. That is why we learn to be resilient, flexible, and learn to ride on with the stressful situations with our own coping mechanisms. We have to let go of the chance to enjoy most of the summer activities – the sun and the beach and the chance for instance, to see the cherry blossoms in Japan which is at its glory in April and to go to the holy land where most of the trips are made in April or even just to enjoy the local beaches. We have to chase the summer season after the April 15 deadline so we can still enjoy the summer sun and have a much-needed break from work and stress.

The 8% flat rate for small taxpayers is a great relief for sole proprietors and professionals since they do not have to keep all those receipts of disbursements and made their filing a lot simplier. This would apply to taxpayers who do not have enough expenses to support with and those who do not want to be bothered by an itemized form of deductions method.

The reduction of number of forms to be accomplished is also one big step to simplifying a complex tax preparation. We hope to see more improvements in the coming years in the way we file taxes and how the small businesses and middle-income earners can avail of lower tax rates. A strong middle class is one that will truly move the growth of the economy based on global statistics.

In an article “The Role of Middle Class in Economic Development…” by Natalie Chun and Rana Hasan dated May 29, 2016, it cited the use of different middle-class measures and a panel of 105 developing countries spanning the period 1985-2013, showing that a larger middle class influences consumption growth primarily through higher levels of human capital accumulation. That is why there is a need to support our small businesses in order for them to grow and move on to be middle class earners. On the other hand the government should see to it that the middle class are strengthened to help spur economic growth. And the tax measures we have right now is geared towards that direction.
The tax season although means a lot of hard work, had been a part of every accountant’s life.

I had been exposed to the tax season since I was small since my father had been in the public practice since I was born. I am used not seeing him much during the tax season and I would always go to his office and spend most of my time during summer breaks there and learn how to type and prepare crop accounting schedules for sugar planter clients even when I was still in high school. It was not a job for me because I am enjoying it and I always volunteer to help.
Now that part of my life enabled me to get used to the tax season. And the best part? After such work-laden, sometimes draining and stressful season, we are able to fully enjoy the period after completing all the tax requirements. As they say, leisure is enjoyed at its best after a work where you had done with your best.

(Wilma Miranda is a Managing Partner of Inventor, Miranda & Associates, CPAs, Adviser of the Media Affairs Committee of FINEX, Treasurer of Negros Outsourcing Services, Inc. and member of the Board of Directors of KPS Outsourcing, Inc. The views expressed herein do not necessarily reflect the opinion of these institutions.)

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