Biz Wisdom

Issue receipts – this simple piece of paper works both ways. It tells a buyer how much he paid for a product (including the tax), and it also helps the seller keep track of the sales on which he must pay taxes. Issuing a receipt is also one of the most basic requirements of a taxpayer – something that quite few business taxpayers either take for granted or sadly, ignore altogether. It is clear that issuing a receipt is not only a good business practice; it’s also a good tax practice.

Keep accurate accounting records, and know your tax deadline. Knowing exactly how much one earned is the first step to knowing how much one has to pay as taxes. Having one’s accounting records is also helpful in case one is being audited. If the records are in order, there’s a bigger chance that the audit will do on smoothly, and you won’t be issued a deficiency assessment. It also helps to know the deadlines for filing and payment of a particular type of tax. Remember, if you pay the correct amount of taxes on time, you’ll spare yourself from the additional stress of having to pay surcharges, penalties and interest.

Be updated on the latest tax regulations. The Bureau makes it a point to publish new tax regulations in at least one newspaper. Keeping abreast of new tax regulation is always the most important step in knowing what one’s tax obligations are, and the requirements one has to comply with to meet their obligations. A taxpayer should also feel free to inquire from his District office about any clarifications he’d like to make about new regulations or requirements. Keeping informed helps make tax compliance easier and faster and less stress.