Beyond routine: Strengthening year-end tax compliance

TAXWISE OR OTHERWISE CHRISTIAN D. GRIMALDO

- CHRISTIAN D. GRIMALDO

As the year draws to a close, many business owners and finance teams find themselves balancing wrapping up operations with the essential task of preparing for tax season. December sets the tone for the upcoming year's regulatory requirements. A well-managed year-end close does more than satisfy administrative expectations - it prevents unnecessary penalties, simplifies audits, and strengthens the accuracy and transparency of financial reporting.

For taxpayers, year-end compliance extends beyond the filing of annual income tax returns. It includes reviewing books of account, preparing payroll reconciliations, completing information returns, and ensuring that both national and local tax obligations are addressed on time. These activities form the backbone of a smooth transition into the new year, allowing businesses to focus on growth rather than correcting past compliance lapses.

A central aspect of year-end preparation is ensuring that books of account are updated, accurate, and maintained in accordance with Bureau of Internal Revenue (BIR) requirements.