MODULE 1

Introduction to Strategic Tax Management

Introduction

The module, Introduction to Strategic Tax Management, contains discussion materials and practice
problems related to the nature, concept and importance of tax planning and management. This Module
contains also a discussion as to the difference between tax avoidance and tax evasion with given
examples for each. Discussed also are the common compliance requirements of the Bureau of Internal
Revenue (BIR). Provided also in this module are the discussion as to books of accounts. Lastly,
provided herein are the penalty provisions as set in the tax code.

In this module you are required and expected to accomplish sets of practice problems in order to
complete each learning outcomes/objectives. In each learning outcomes/objectives are Task/Activity
Sheets. Follow and perform the activities on your own. If you have questions, do not hesitate to ask
for assistance from your professor. You are required to submit and compile these activities (Student
Portfolio).

Learning Objectives
After studying this module, you shoud be able to
1. Define and describe the nature of tax planning and management
2. Differentiate tax avoidance with tax evasion
3. Give examples of tax avoidance and tax evasion
4. Identify the common tax minimization schemes
5. Determine the common compliance requirements of BIR
6. Identify the necessary Books of Accounts
7. Determine the penalty provisions as set in the tax code.

Learning Contents
1. Definition and nature of tax planning and management
2. Tax Avoidance vs. Tax Evasion
3. Common tax minimization schemes
4. Compliance requirements of BIR
5. Books of Accounts
6. General Penalty Provisions
ISABELA STATE UNIVERSITY- CBAPA 2
MODULE 1: Introduction to Strategic Tax Management

Lesson 1 Introduction to Strategic Tax Management

It’s critical that we understand the difference between tax planning and tax management!
Knowing the comparable differences will have major impact on business.

Introduction to Tax management

Tax management. This deals with the proper maintenance of financial records, audit
of accounts, timely filing of the return, payment of taxes and appearing before the
appellate authority, whenever required.

It is an art of handling the financial affairs, while complying with the tax provisions, so
as to avoid the payment of interest and penalties.

Introduction to Tax planning

Tax planning is one of the most important aspects of financial planning. It is a common
practice for businesses to minimize tax liabilities. Tax planning is where tax
accountants/associates take time to review the future plans and activities of the business and
its tax implications; to assess the most beneficial option for the company. Tax planning
introduces the minimization of tax liabilities in a legal sense. Tax planning involves a thorough
understanding of the applicable tax laws in the Philippines. Tax planning introduces the need
to maximize various tax exemptions, deductions and benefits as allowed in the tax code for
certain business organizations.
Tax planning enables a business to avoid tax issues whenever there are tax
assessments. Tax planning involves reviewing the applicable reportorial requirements related
to tax and produces an outline on how and when to accomplish such requirements in order to
avoid tax issues. Tax laws are fast changing thus, it is beneficial for the company to allow
some tax planning and management in order to get updated with the current tax laws and/or
issues. Overall, tax planning is the process of the company wherein the company ensure that
allowable deductions and exemptions are maximized, the correct amount of taxes are paid on
time and should be filed in a correct manner and place of filing to lessen or eliminate the risk
of having heavier tax burdens.
Acceptable Tax Planning
In relation to Acceptable Tax Planning, tax is an important factor in many business
decisions and tax planning in support of commercial activity and optimization of returns
for investors is normal and appropriate. However, the Company should not engage in
tax planning that goes beyond support for genuine commercial activities.

Aggressive Tax Planning

The Company will not engage in Aggressive Tax Planning, as defined by the OECD as:

• Planning involving a tax position that is tenable but has unintended and unexpected
tax revenue consequences; or
ISABELA STATE UNIVERSITY- CBAPA 3
MODULE 1: Introduction to Strategic Tax Management

• Taking a tax position that is favourable to the taxpayer without openly disclosing
that there is uncertainty whether significant matters in the tax return accord with the
law. Management will review all proposed transactions or arrangements aspart
of the Company’s established transaction approval procedures and in linewith
the appropriate escalation in order to ensure that the Company does not engage in
Aggressive Tax Planning. As a broad guide, transactions or arrangements exhibiting
the following feature or features may be considered to be Aggressive Tax Planning
and will be closely reviewed by Management.:
• transactions that have little or no economic substance
• transactions bearing little or no pre-tax profit which rely on anticipated tax
reduction to produce a significant post-tax profit
• transactions involving contrived, artificial, transitory, pre-ordained or
commercially unnecessary steps
• transactions involving unnecessary layers of complexity
• transactions which have material economic terms that are inconsistent with market
norms. transactions which provide the Company with compensation that
appearssubstantially disproportionate to the services provided or investment made
• transactions where the Company personnel are incentivized solely on the tax
saved
• transactions which in substance produce unintended multiplication of tax benefits
in different jurisdictions

Tax and Corporate Responsibility

Tax strategy it is the plan, based firmly on data and the facts of the business, which
sets out the tax decisions made in supporting the organization's goals.

Five Fundamental Principles

responsible corporate
tax efficiency
compliance relations

prevention of
tax transparency

risks
An illustration of Tax Strategy
ISABELA STATE UNIVERSITY- CBAPA 4
MODULE 1: Introduction to Strategic Tax Management

1. We are aware of our responsibility in the sustainable economic development of the

societies in which we operate and that the taxes we pay represent a significant part of
their economies.
For this reason, we are committed to the responsible payment of taxes in the communities in
which we operate, applying the following action principles:

• We comply with the law, respecting both the letter and spirit of the law.
• We apply the “arms length” principle in our intra-group transactions.
• We adopt our tax positions based on solid economic or business reasons or oncommonly
accepted practices, avoiding abusive tax planning schemes or practices.
• We provide true, complete information on our transactions.
• We prioritize non-litigious means of resolving conflicts when possible and the
possibilities offered by legal procedures to strengthen agreements with administrations.
• Some examples to demonstrate our tax efficiency and defense of the Company’s
interests:
o Complying with the Philippine Code of Good Tax Practices.
o Efficiently managing our company’s structure and avoiding the use of tax
havens and opaque structures.
o Aligning transfer prices with value creation and the arm’s length
principle.
o Internal control processes and regulations to ensure compliance with our
tax obligations.
o An adequate organizational structure and the means to comply with our tax
obligations.

2. We reconcile responsible compliance with our tax obligations with the commitmentto
create value for our shareholders.
We do this through efficient management of tax payments and benefits, keeping in mind the
Company's global interests and anticipating significant tax risks.

• Some examples to demonstrate our tax efficiency and defense of the company’s
interests:
- Tax planning aligned with the business and aimed at legitimate optimization.
- Applying tax breaks in accordance with the letter and spirit of the regulations and which
are accessible to all economic players (deductions for research, development, and
innovation; freedom to amortize; capitalization of reserves, etc.)
- Supporting publishing the tax incentives in oil contracts from authorities and
governments.

3. We are committed to building relationships with tax authorities

These relationships are based on the principles of trust, good faith, professionalism,
collaboration, loyalty, and a search for mutual understanding based on reciprocity to facilitate
the application of the tax system, increase legal security, and reduce disputes.
ISABELA STATE UNIVERSITY- CBAPA 5
MODULE 1: Introduction to Strategic Tax Management

• Some examples to demonstrate our tax efficiency and defense of the company’s
interests:
o Voluntarily presenting our 2015, 2016, and 2017 Tax Transparency Reports.
o Participating in employment forums in cooperation with public administrations
o Participating in the OECD's pilot program “International Compliance
Assurance Programme” (ICAP).
o Collaborating with international organizations e.g. Organization for Economic
Cooperation and Development (OECD, UN, and EU).

4. We apply responsible tax policies that enable us to prevent conduct that could
generate significant tax risks.
We frame the management of these risks within our global risk management policy in order
to mitigate or eliminate them, and we ensure the defense of the legitimate interests of the
Company if we must assume said risks in the event that common understanding with the tax
administration is not possible.

• Some examples to demonstrate our tax efficiency and defense of the company’s
interests:
o Incorporating tax risks into the Group’s core risk management system.
o Informing the Board of Directors of the tax strategy and management
throughout the financial year.
o Concluding mutual procedures and agreements with tax administrations
regarding a range of matters.
5. We are committed to transparency being the basis of our actions in exercising tax
functions and we endeavor to:
• Not use opaque or contrived corporate structures to hide or reduce the transparency of
our activities.
• Not operate in tax havens unless it is necessary for business reasons.
• Comply with the best external reporting standards on tax policy in order to facilitate
understanding of our tax contributions and tax policies.
• Some examples to demonstrate our tax efficiency and defense of the company’s
interests:
o Leaders in the Philippines terms of transparency and responsible tax affairs
according to studies carried out by various social analysis opinion panels.
o Incorporating tax-related objectives into Company’s Global Sustainability
Plan.
o Member of the B-Team workgroup, and compliance with the principles of good
tax governance established by this organization.
o Active dialogue with NGOs.
o Publishing our Country-by-Country Report (CbC).
ISABELA STATE UNIVERSITY- CBAPA 6
MODULE 1: Introduction to Strategic Tax Management

Major comparisons between tax planning vs. tax management

Tax Planning Tax management
The objective of tax planning is to reduce the objective of Tax management is to
the tax liability to the minimum comply with the provisions of law
Tax planning is futuristic in its approach It relates to past (i.e. assessments
proceedings, rectification, revisions,
appeals); present (filing of return of
income on time based on updated
records) and future (corrective action).
It is wide in its coverage and includes tax Has a limited scope, i.e., it deals with
management. specific activities such as filing of returns
of income on time, drafting appeals,
deductions of tax at source one time,
updating of records from time to time,
etc.
The benefits arising from tax planning As a result of tax management, penalty,
are substantial particularly in the long interest, prosecution, etc can be avoided.
run.

TAX EVASION vs. TAX AVOIDANCE

Taxpayers normally want to reduce its tax liabilities. As such, there are several ways to reduce tax
liabilities which are either considered as tax evasion or tax avoidance. Tax evasion is the use of illegal
means to reduce tax liabilities. Tax evasion is where taxpayers deliberately evade the assessment or
payment of tax. Tax evasion is considered illegal and thus, may be subjected to criminal liabilities.
Tax Avoidance on the other hand is the use of legitimate means to reduce tax liabilities. Common tax
avoidance schemes are the maximization of the allowable deductions, exemptions and benefits as
approved by the tax code for certain forms of business organization.
Common Examples of Tax Evasion
1. Under Reporting of Income- Taxpayers oftentimes do not declare the correct amount of
revenues or sales derived by the taxpayer to reduce tax liabilities.
2. Over Deductions- Taxpayers oftentimes claim deductions for expenses which have not been
incurred yet by the taxpayer. At times, taxpayers also claim deductions which are over the
ceiling as approved by the tax code for various business organizations. And also, taxpayers,
at times claim deductions which are not applicable on their own line of business.
3. Non-Filing of Tax Returns- To eliminate tax dues, taxpayers oftentimes deliberately neglect
to file the applicable tax returns.
4. Deliberate under or non-payment of taxes- When tax returns were already filed, taxpayers
should pay the tax due from that return. At times, taxpayer neglect to pay the applicable tax
dues from the returns already filed with the Bureau.
ISABELA STATE UNIVERSITY- CBAPA 7
MODULE 1: Introduction to Strategic Tax Management

Common Examples of Tax Avoidance

1. Maximize allowable deductions- Allowable deductions as approved under the tax code
should be maximized in order to reduce tax liabilities. It is necessary though that specific
documentation should be furnished to support such expenses. It is also necessary that
whenever withholding are required for such expenses, such withholding should be made and
remitted by the taxpayer.
2. Use allowable tax credits- Withholding of income-by-income payees should be supported by
withholding tax certificates which may be used by the taxpayers to reduce the income tax
liabilities. Take use of the excess of Minimum Corporate Income Tax (MCIT) over Regular
Corporate Income Tax (RCIT) if deemed applicable, which may be claimed within the
succeeding three taxable years. Take use also of the Net Operating Loss Carry-Over (NOLCO)
which may be claimed as deduction for income tax purposes within the succeeding three
taxable years.
3. Decide what method of deduction to use- Itemized deduction or Optional Standard
Deduction may be advantageous for different classes of taxpayers. As such, it is important to
select the most advantageous method of deduction for the taxpayer.
4. Make use of the Excess Income Tax Payments- Taxpayers who had excess income tax
payments are given an option to: (1) carry-over the excess credit to the next taxable
year/quarter; (2) refund the excess amount of taxes paid or apply for the issuance of tax credit
certificate (TCC).
5. Know the non-taxable income- Always bear in mind the non-taxable income in order to
avoid associating such with other taxable income.
6. Avail the tax incentives- Taxpayers engaging in the priority projects as determined by the
Board of Investments (BOI) or Philippine Economic Zone Authority may register to avail of
the tax incentives. It is important to know whether the line of business of the taxpayer is
qualified for the tax incentives as given under the authority of the said government entities.
COMMON COMPLIANCE REQUIREMENTS
The Bureau of Internal Revenue (BIR) sets lots of compliance and reportorial requirements to ensure
the collectability of taxes for the government. BIR requires taxpayers to file various returns with
different deadlines (monthly, quarterly or annually). As such, taxpayers take time to manage their
available resources to meet such compliance requirements.
Basic Compliance Requirements
There are lots of tax returns required by the BIR to be filed by the taxpayers. These tax returns are
filed in order to disclose the business transactions which may be subjected to tax. The common tax
returns filed are the following:
1. Income Tax Return
2. Value Added Tax Return
3. Percentage Tax Return
4. Withholding Taxes
5. Other applicable Tax Returns
ISABELA STATE UNIVERSITY- CBAPA 8
MODULE 1: Introduction to Strategic Tax Management

Other Compliance Requirements

1. Books of Accounts- All corporations, companies, partnerships or persons required by law to
pay internal revenue taxes shall keep and use relevant and appropriate set of bookkeeping
records duly authorized by the Secretary of Finance wherein all transactions and results of
operations are shown and from which all taxes due the Government may readily and accurately
be ascertained and determined any time of the year. Provided, that corporations, companies,
partnerships or persons whose gross annual sales, earnings, receipts or output exceed Three
Million pesos (P3,000,000), shall have their books of accounts audited and examined yearly
by independent Certified Public Accountants and their income tax returns accompanied with
a duly accomplished Account Information Form(AIF) which shall contain, among others,
information lifted from certified balance sheets, profit and loss statements, schedules listing
income-producing properties and the corresponding income therefrom and other relevant
statements.

Types of Books of Accounts

A. Manual Books of Accounts- this is the most common type of books of accounts which
are readily available in the market.
B. Computerized Accounting System (CAS)- Taxpayers, specifically large taxpayers
which require voluminous and complex transactions may opt to register under the
Computerized Books of Accounts. Prior to the use of such accounting system, the
taxpayer shall apply for a permit to adopt computerized accounting system or
components thereof under the Bureau of Internal Revenue (BIR). Prior to the approval
of such permit, an evaluation as to the accuracy of the system to process the
transactions, will be conducted by the Computerized Systems Evaluation Team
(CSET). The evaluation may be made through walk-through tests or actual systems
demo.
C. Loose-Leaf Books of Accounts- It is a book of accounts which is not fully manual and
not fully computerized. Business transactions can be recorded and encoded using a
digital or computer-based accounting system during the financial year. Then, at the
end of every year, the company must print out the ledgers and books from the
accounting system, have them bound together (under a specifically approved BIR
format) and then submit the bound books physically to the BIR. (cloudcfo.ph)

Components of Books of Accounts

Books of accounts that taxpayers need to accomplish and preserve are the following:
A. Journal
B. Ledger
C. Cash Receipts Books
D. Cash Disbursement Books
E. Subsidiary Sales Journal
F. Subsidiary Purchases Journal
ISABELA STATE UNIVERSITY- CBAPA 9
MODULE 1: Introduction to Strategic Tax Management

If the taxpayer is a VAT-registered taxpayer, he is required to accomplish and preserve all of

the abovementioned books of accounts. Nonetheless, if the taxpayer is non-VAT-registered
taxpayer, he is required to accomplish and preserve only the components A to D.
Preservation of Books of Accounts
All the books of accounts, including the subsidiary books and other accounting records of
corporations, partnerships, or persons, shall be preserved by them for a period beginning from
the last entry in each book until the last day prescribed by Section 203 within which the
Commissioner is authorized to make an assessment. The said books and records shall be
subject to examination and inspection by internal revenue officers: Provided, that for income
tax purposes, such examination and inspection shall be made only once in a taxable year,
except in the following cases:
A. Fraud, irregularity or mistakes, as determined by the Commissioner;
B. The taxpayer requests reinvestigation;
C. Verification of compliance with withholding tax laws and regulations;
D. Verification of capital gains tax liabilities; and
E. In the exercise of the Commissioner's power under Section 5(B) to obtain information
from other persons in which case, another or separate examination and inspection may
be made. Examination and inspection of books of accounts and other accounting
records shall be done in the taxpayer's office or place of business or in the office of the
Bureau of Internal Revenue. All corporations, partnerships or persons that retire from
business shall, within ten (10) days from the date of retirement or within such period
of time as may be allowed by the Commissioner in special cases, submit their books
of accounts, including the subsidiary books and other accounting records to the
Commissioner or any of his deputies for examination, after which they shall be
returned. Corporations and partnerships contemplating dissolution must notify the
Commissioner and shall not be dissolved until cleared of any tax liability.
Any provision of existing general or special law to the contrary notwithstanding, the books of
accounts and other pertinent records of tax-exempt organizations or grantees of tax incentives
shall be subject to examination by the Bureau of Internal Revenue for purposes of ascertaining
compliance with the conditions under which they have been granted tax exemptions or tax
incentives, and their tax liability, if any.
2. Annual Registration Fee- An annual registration fee in the amount of Five hundred pesos
(P500) for every separate or distinct establishment or place of business, including facility types
where sales transactions occur, shall be paid upon registration and every year thereafter on or
before the last day of January: Provided, however, That cooperatives, individuals earning
purely compensation income, whether locally or abroad, and overseas workers are not liable
to the registration fee herein imposed.
The registration fee shall be paid to an authorized agent bank located within the revenue
district, or to the Revenue Collection Officer, or duly authorized Treasurer of the city or
municipality where each place of business or branch is registered.
ISABELA STATE UNIVERSITY- CBAPA 10
MODULE 1: Introduction to Strategic Tax Management

3. Invoicing Requirements- All persons subject to an internal revenue tax shall, at the point of
each sale and transfer of merchandise or for services rendered valued at One hundred pesos
(P100.00) or more, issue duly registered receipts or sales or commercial invoices, showing the
date of transaction, quantity, unit cost and description of merchandise or nature of service:
Provided, however, That where the receipt is issued to cover payment made as rentals,
commissions, compensations, fees, receipts or invoices shall be issued which shall show the
name, business style, if any, and address of the purchaser, customer or client: Provided,
further, That where the purchaser is a VAT-registered person, in addition to the information
herein required, the invoice or receipt shall further show the Taxpayer Identification Number
(TIN) of the purchaser.

Within five(5) years from the effectivity of this Act and upon the establishment of a system
capable of storing and processing the required data, the Bureau shall require taxpayers
engaged in the export of goods and services, taxpayers engaged in e-commerce, and taxpayers
under the jurisdiction of the Large Taxpayers Service to issue electronic receipts or sales or
commercial invoices in lieu of manual receipts or sales or commercial invoices, subject to the
rules and regulations to be issued by the Secretary of Finance upon recommendation of the
Commissioner and after a public hearing shall have been held for this purpose: Provided, that
taxpayers not covered by the mandate of this provision may issue electronic receipts or sales
or commercial invoices, in lieu of manual receipts, and sales and commercial invoices.

The original of each receipt or invoice shall be issued to the purchaser, customer or client at
the time the transaction is effected, who, if engaged in business or in the exercise of profession,
shall keep and preserve the same in his place of business for a period of three (3) years from
the close of the taxable year in which such invoice or receipt was issued, while the duplicate
shall be kept and preserved by the issuer, also in his place of business, for a like period:
Provided, That in case of electronic receipts or sales or commercial invoices, the digital
records of the same shall be kept by the purchaser, customer or client and the issuer for the
same period above stated.

GENERAL PENALTY PROVISIONS

Failure to file and pay taxes on time and in the correct place shall be subjected to various penalties
and interests as provided in the tax code which may be as follows:
1. Civil Penalties- There shall be imposed, in addition to the tax required to be paid, a penalty
equivalent to twenty-five percent (25%) of the amount due, in the following cases:
a. Failure to file any return and pay the tax due thereon as required under the provisions
of this Code or rules and regulations on the date prescribed; or
b. Unless otherwise authorized by the Commissioner, filing a return with an internal
revenue officer other than those with whom the return is required to be filed; or
c. Failure to pay the deficiency tax within the time prescribed for its payment in the notice
of assessment; or
ISABELA STATE UNIVERSITY- CBAPA 11
MODULE 1: Introduction to Strategic Tax Management

d. Failure to pay the full or part of the amount of tax shown on any return required to be
filed under the provisions of this Code or rules and regulations, or the full amount of
tax due for which no return is required to be filed, on or before the date prescribed for
its payment.

In case of willful neglect to file the return within the period prescribed by this Code or by rules
and regulations, or in case a false or fraudulent return is willfully made, the penalty to be
imposed shall be fifty percent (50%) of the tax or of the deficiency tax, in case, any payment
has been made on the basis of such return before the discovery of the falsity or fraud: Provided,
That a substantial under-declaration of taxable sales, receipts or income, or a substantial
overstatement of deductions, as determined by the Commissioner pursuant to the rules and
regulations to be promulgated by the Secretary of Finance, shall constitute prima facie
evidence of a false or fraudulent return: Provided, further, That failure to report sales, receipts
or income in an amount exceeding thirty percent (30%) of that declared per return, and a claim
of deductions in an amount exceeding (30%) of actual deductions, shall render the taxpayer
liable for substantial under-declaration of sales, receipts or income or for overstatement of
deductions, as mentioned herein.

2. Interest- There shall be assessed and collected on any unpaid amount of tax, interest at the
rate of double the legal interest for loans or forbearance of any money in the absence of an
express stipulation as set by the Banko Sentral ng Pilipinas from date prescribed for payment
until the amount is fully paid: Provided, That in no case shall the deficiency and delinquency
interest prescribed under Sections (B) and (C) hereof, be imposed simultaneously.
a. Deficiency Interest. - Any deficiency in the tax due, as the term is defined in this Code,
shall be subject to the interest prescribed in Subsection (A) hereof, which interest shall
be assessed and collected from the date prescribed for its payment until the full
payment thereof, or upon issuance of a notice and demand by the Commissioner of
Internal Revenue, whichever comes earlier.
b. Delinquency Interest. - In case of failure to pay:
i. The amount of the tax due on any return to be filed, or
ii. The amount of the tax due for which no return is required, or
iii. A deficiency tax, or any surcharge or interest thereon on the due date appearing
in the notice and demand of the Commissioner, there shall be assessed and
collected on the unpaid amount, interest at the rate prescribed in Subsection
(A) hereof until the amount is fully paid, which interest shall form part of the
tax.

3. Failure to File Certain Information Returns.- In the case of each failure to file an
information return, statement or list, or keep any record, or supply any information required
by this Code or by the Commissioner on the date prescribed therefor, unless it is shown that
such failure is due to reasonable cause and not to willful neglect, there shall, upon notice and
demand by the Commissioner, be paid by the person failing to file, keep or supply the same,
One thousand pesos (1,000) for each failure: Provided, however, That the aggregate amount
ISABELA STATE UNIVERSITY- CBAPA 12
MODULE 1: Introduction to Strategic Tax Management

to be imposed for all such failures during a calendar year shall not exceed Twenty-five
thousand pesos (P25,000).

4. Failure of a Withholding Agent to Collect and Remit Tax. - Any person required to
withhold, account for, and remit any tax imposed by this Code or who willfully fails to
withhold such tax, or account for and remit such tax, or aids or abets in any manner to evade
any such tax or the payment thereof, shall, in addition to other penalties provided for under
this Chapter, be liable upon conviction to a penalty equal to the total amount of the tax not
withheld, or not accounted for and remitted.

5. Failure of a Withholding Agent to refund Excess Withholding Tax. - Any

employer/withholding agent who fails or refuses to refund excess withholding tax shall, in
addition to the penalties provided in this Title, be liable to a penalty to the total amount of
refunds which was not refunded to the employee resulting from any excess of the amount
withheld over the tax actually due on their return.
END
ISABELA STATE UNIVERSITY- CBAPA 13
MODULE 1: Introduction to Strategic Tax Management

Learning Activities/Tasks
AFTER YOU READ
Check Your Understanding

NAME: SCORE:
SECTION: DATE:

Activity 1 – Simple Case Studies. Choose atleast two of the following topics and provide your
stand with regards the topic chosen (present your legal or other basis/references):
1. Effects of the recent tax reforms (TRAIN and CREATE) in the overall tax compliance of
taxpayers.
2. Effects of tax planning in the overall operations of a Micro, Small and Medium Entities
(MSMEs).
3. Effects of tax compliance and tax reform in the economic development of the Philippines.
4. How can tax planning and tax compliance be associated with the corporate social
responsibility of a corporation.
5. Tax provisions implemented to detect, correct and penalize tax evasion. (Case Digest of a
Tax Evasion Case filed in the Court of Tax Appeals)
6. Contributions of the corporate stakeholders in the overall tax planning and management of
the corporation.
7. The role of technology in the effectiveness of tax planning and management by a corporate
taxpayer.

Activity 2- Finish the uploaded video with regards the step-by-step procedure in
accomplishing books of accounts

Assessment Task
• Assignment
• Quiz
• Major Examination

References
• CPA Reviewer in Taxation with Special Topics and Sample Filled-up BIR forms by Sir Enrico
D. Tabag, CPA, MBA. 2021 Edition
• Tax Planning Strategies- Charity P. Mandap-de Veyra, Tax manager at the Cebu and Davao
Branches of Punongbayan & Araullo.
• National Internal Revenue Code, as amended.
• Relevant Revenue Memorandum Circulars
• Relevant Revenue Regulations