Strengthening tax compliance in light of recent reforms

As businesspeople browse through their email or scroll through social media, they may have noticed a flurry of updates regarding new laws and regulations impacting businesses.

- MICHAEL A. MADLANGBAYAN

The pace of change in the Philippine tax landscape has accelerated, with several significant reforms introduced over the past two years. These changes, including the Ease of Paying Taxes Act, VAT on Digital Services Law, Real Property Valuation and Assessment Reform Act, CREATE MORE Act, and Capital Markets Efficiency Promotion Act, have far-reaching implications for how businesses operate and comply with tax obligations.

As such, staying compliant is not just about adhering to existing laws; it is also about anticipating future changes and adapting accordingly. The complexity of these new regulations can create challenges for businesses, particularly those that may not have the resources or expertise to navigate the intricacies of tax compliance on their own. Organizations must be proactive in understanding these reforms and implementing strategies to ensure that they remain compliant while minimizing risks.

The stakes are high; noncompliance can lead to significant penalties, reputational damage, and even legal repercussions. Therefore, it is essential for businesses to prioritize tax compliance as a core aspect of their operations. By adopting a strategic approach, organizations will seek to not only meet their legal obligations but also leverage tax compliance to enhance their overall business performance.

This article discusses six key strategies to strengthen tax compliance considering these recent changes.

STAYING INFORMED AND EDUCATED

Understanding the nuances of the new tax laws is crucial for compliance. Businesses should invest in training programs for their finance and tax teams to ensure that they are well-versed in the latest regulations. Regular updates from the tax authorities, including the Bureau of Internal Revenue (BIR) and other regulatory bodies, as well as the participation in seminars or workshops, can help keep staff informed about compliance requirements and deadlines.