BY ACE CYRELLE PAGLINAWAN/CMU Intern
TAX HELP Philippines is encouraging small and medium enterprises (SMEs) to become more knowledgeable about their tax obligations and rights, saying proper tax education can help businesses comply with the law and avoid unnecessary liabilities.
During Wednesday’s media forum at Habi at Kape, Abreeza Mall, Rizaldy Menor, group founder, emphasized the importance of tax literacy as many business owners encounter tax problems not because they intend to violate the law but because they are unaware of the rules they must follow.
A certified public accountant by profession, Menor, said taxation applies to everyone, but SMEs remain among the sectors that need greater guidance on compliance. He said Tax Help Philippines was established to help entrepreneurs understand pertinent laws and prepare them for BIR assessments before problems arise.
“We should not be afraid of the BIR audit process as long as we are properly prepared with our books and have complied with the tax laws,” he said.
Menor explained that every BIR audit begins with a Letter of Authority issued by the regional director under the National Internal Revenue Code. He warned business owners against ignoring the notice, saying it may limit their opportunity to present supporting documents and defend their records, resulting in estimated assessments and higher penalties.
He also underscored the taxpayer’s constitutional right to due process, saying business owners should be aware of both their substantive and procedural rights throughout the audit process. Among the most overlooked rights, he said, is the right to protest under Section 228 of the Philippine National Internal Revenue Code (NIRC), which allows taxpayers to question assessments through the proper legal process.
“If taxpayers know their rights, they should not worry about whatever computation the BIR may come up with because they will always have the opportunity to defend their books,” he said.
With more businesses shifting to digital platforms, Menor reminded online sellers that income earned through online transactions remains taxable. He urged entrepreneurs to register with the BIR and comply with withholding tax requirements, noting that failure to withhold taxes from suppliers may leave business owners personally liable for the deficiency.
For startup businesses, Menor stressed that tax planning should begin before operations start, as many entrepreneurs are caught off guard by filing and compliance requirements after registration. He said understanding these obligations early allows businesses to avoid costly penalties and focus on growth.
To support this effort, Menor said Tax Help Philippines regularly conducts free seminars to help entrepreneurs better understand tax laws, taxpayer rights, and compliance requirements, intending to build a community of business owners who are informed, compliant, and prepared to navigate the country’s tax system.
