PUBLISHED DATE: JULY 18, 2019
The Bureau of Internal Revenue (BIR) requires all Large Taxpayers in the Philippines to use a BIR Accounting System or Computerized Accounting System or CAS for an accurate, secure and reliable tax audits.
Large Taxpayers or those companies who have been classified as such in accordance with the criteria under Revenue Regulations No. 1-1998 (RR No. 1-98), and has been duly notified by the Commissioner of Internal Revenue (BIR) must acquire and use a BIR Accounting System which is vital for their business process. BIR Accounting System can manage all the daily transactions, organize the operations and assure that transactions and postings are compliant with the BIR rulings.
Today, BIR Accounting System is available in the market which provides all the necessary forms and reports essential for CAS:
Financial Reports such as, General Journal, Cash Receipt Journal, Cash Disbursement Journal, Sales Journal, Purchase Journal, General Ledger, Subsidiary Ledger of Debtor, Subsidiary Ledger of Creditor, Trial Balance, Statement of Financial Position and Statement of Comprehensive Income.
BIR Report Summary which includes Summary List of Sales (SLS), Summary List of Purchases (SLP) and Semestral List of Regular Suppliers (SRS).
BIR Data Files like Relief Sales Data File, Relief Purchases Data File, QAP Data File, Annual Witholding Tax Data File (1604E) and SAWT Data File.
BIR Forms and Certificates that comprise BIR Form 2550M, BIR Form 2550Q, BIR Form 1601-EQ, BIR Form 0619-E and BIR Form 1604-E and BIR Certificate 2307.
While the process for CAS accreditation is extensive and lengthy due to many applications in line, Large Taxpayers must take note the penalties if they will us a BIR Accounting System that is not yet accredited by the Bureau. The penalties are as follows:
- P25,000 on the first offense pursuant to RMO 1-90, as amended by RMO 56-2000.
- P50,000 on the second offense pursuant to RMO 1-90, as amended by RMO 56-2000.
- If a taxpayer generates a sales invoice or official receipt from an unauthorized CAS, a penalty of P1,000 will be imposed for each document issued, but the maximum penalty shall not exceed P25,000 per year.
Though delays in BIR Accounting System Accreditation is quite challenging for the Large Tax Payers, we will still hope for the best that a more effective accreditation process will be available. There is a proposed regulation to accredit the BIR Accounting System Suppliers to make the steps easier for all. We must take note that innovation must be embraced in order to improve bookkeeping and business process in the Philippines.