Attention Corporation: Risk of paying not less than Php10,000.00 penalty on 1702Q

1702QATTENTION CORPORATION: There is a potentially expensive sting in the tail for pay and file taxpayers who have not yet paid & filed their 2014 second quarter corporate income tax (1702Q). Second quarter covers April, May & June 2014 and the deadline for filing is on the 28th of August or on or before 60 days following the close of each of the quarters.  Anyhow, for corporate taxpayers, the 2014 income tax return will trigger a penalty not less than Php10,000, if not filed. Therefore, it is important, however, to note that the penalty is calculated on your income tax liability, and that this penalty is in addition to the tax liability. Oh yes! aside from the tax payable you will be charged for additional penalty.  You don’t want that do you?  Well of course, the BIR issued a table of compromise penalty depending on the amount of tax involved.   But that is not he point.  Because additional penalties may also apply for non-compliance with filing obligations and worst you will be monitored already.

Thus, if you want to avoid any penalty then make sure you have filed and paid your 1702Q ON OR BEFORE THE DEADLINE.

 

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SEC Registration Requirements for Stock Corporation

Here are the requirement that you need to prepare in connection with the registration of a stock corporation with the Philippine Securities and Exchange Commission (SEC).

1) COVER SHEET

2) NAME VERIFICATION SLIP

3) BANK CERTIFICATE OF DEPOSIT OF PAID-UP CAPITAL (notarized in the place executed)

4) ARTICLES OF INCORPORATION

5) TREASURER’S AFFIDAVIT

6) BY-LAWS

7) UNDERTAKING TO CHANGE NAME (not required if provided in the Articles of Incorporation)

HOWEVER, additional requirements such as: (1) Indorsement/clearance from other government agencies, if applicable (2) For corporations with foreign equity, submit proof of inward remittance by non-resident aliens and foreign corporate subscribers who    want to register their investment with BSP; (3) For corporations with more than 40% Foreign equity, submit SEC Form No. F – 100; (4) For corporations with Phil. Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA) or other economic zones application, attach Certificate of Authority or indorsement from said government agencies.

Of course, as of my last inquiry,  the cost associated with the registration are (1) Filing Fee:  1/5 of 1% of the Authorized Capital Stock but not less than Php1,000.00 (2) By Laws: Php510.00 and (3) Legal Research Fee:  1% of Filing Fee but not less than Php10.00.

Professional firm, part 2.

When I first thought of putting up a professional firm, a CPA firm, in particular, I chuckled and said now this one is a serious stuff.  Well, of course, I am always serious when it comes to my work and profession.  And as a workmanship, I must say there is no room for errors.  I regard our profession, the accountant’s work, as a high value service. It’s not that I am an accountant, but being a CPA is a high value profession, isn’t it?

Look. You tell me who does taxation? Who knows of a financial well-being? How about debit, credit and financial statements?

That is why most if not all CPAs are paid well.  Indeed, even entry level CPAs are getting a good pay in a large corporation.

Whew! now, I am hearing an opposing sound hahaha.  There…some violent reactions from the crowd. =D

Nonetheless, for sure, if you’re a CPA and want to keep an above par salary and sustain it, its simple.  First,  keep your focus on your work. Second, keep updating on technology.  Third, keep your license and certifications valid.  And lastly, keep on advancing in the ladder — if, and if there is a ladder to climb up with hehehe. Seriously, you must keep on advancing!

Anyhow, going back to my firm, putting up one is a personal thing for me.  Of course, naman, everyone who puts up their own business thinks it’s personal hahaha.  However, mine, its one of my dreams, when I got hold of my CPA license given by the Professional Regulation Commission back in ’97, yep, yep, I thought of yeah someday I will establish my own accounting and auditing firm. And I am pretty much excited about it.

For some professionals, organizing a firm appears too boring.  Some may consider it indistinct. Others, consider it as challenging, promising, and rewarding business.  I am one of the latter. Why, because starting a firm is a relatively low-risk venture with plenty of reward.

So how did I start it?

What is my business plan?

Stay tune…

For CPAs: 2011 BOA Accreditation Applications

Here is a good news!

News, news, news….

The Regional Trial Court Branch 128 of Caloocan City issued an injunction on the implementation of PRBOA Resolution No. 88, Series of 2009 and PRBOA Resolution No. 23, Series of 2010.  Now, until the final resolution of this case, the Board of Accountancy is not implementing these resolutions.

Well, well, well, this is so  good, especially for all the CPAs out there practicing,  because until the case is pending, and until further notice, applicants for 2011 BOA accreditation, whether initial or renewal, will be required under R.A. 9298 and its implementing rules and regulations, to submit proof of participation in the review of internal quality measures adopted within the firm for the last three years in accordance with PSQC 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information and Other Assurance and Related Services Engagements and PSA 220, Quality Control for an Audit of Financial Statements.  These documentations will be subjected by the BOA or its authorized representatives to inspection and validation at the time and place designated by the BOA as one of the prerequisites for accreditation.

Inquiries may be made at the PRC Standards and Inspection Division. This is in lieu of the requirement of QAR enrolment under the QAR Program.

So there, the QAR…

For those who would like to know about the Board of Accountancy (BOA) accreditation requirements, here is the link that may help you.

A Professional Firm?

Blogging requires time and subject matter. Obviously, “BUZINESS 1”, tackles business. Haha! Anyhow, like other individuals with a sort of etrep-mind, I too have explored several business(es), well of course, that sort of biz that will not only survive in recession time…but will also thrive…and most importantly it is within my capital budget to start with. =D

Frankly, most, if not all people, specially here in the Philippines, don’t have millions of pesos to spend for a J’bee or McDo franchise, unless you’re an “MVP” or a “Wheel” so to speak. So, in short, alternative business, small to start, medium rare if in case, to a level up big kill company like in-asal(mo) would be the answer.

Yep yep…franchise, franchise, franchise. Franchise there, franchise here. From a food kiosk to food kart. Even ice scramble (is-kramble) franchise — those ice-shaved desserts, whew! Anyhow, FRANCHISE that is not my topic for now.

Okay, since my exposure and years of experiences are in the field of finance and accounting acquired from several companies; different industries, aside from my being a CPA and a CFC, why not? A firm instead? Yes, a professional firm, a consulting one, a company that I can practice my profession and be happy.

A professional firm? What are my drivers, my motivational factors? Those BIG accounting firms are firmly stable milking those top corporations. If I am one of them, no chance of letting this money making machines este companies go. Next in line firms are as hungry as wolves trying to fish what are left, and fish those that are already in the BIG firms’ aquarium. Individual CPA practitioners are pop-ing like kabute naman.

So what do I have to offer? What is my edge?

I will answer those in my next issue. Stay tune.

Cha cha.