Current Tax Structure of the Philippines In January 1, 1998, the Tax Reform Act 1997 of the National Internal Revenue code which had gone through significant amendment was executed. The Bureau of Internal Revenue administers taxation. Its function is to assess, collect, process and assist taxpayers. The Commissioner runs the agency. He/she has the sole and initial power to interpret the code provisions and other tax laws.
The following ae the different classifications of budgets. Classification on the basis of Time Long-term Budgets: Long-term budgets are prepared to reflect long-term planning of the business. Generally, the long-term period varies between five to ten years. They are prepared by the top level management. Long-term budgets are prepared for specialized activities like capital expenditure, research and development, long-term finances, etc.
c. The finance committee would meet at least quarterly with the Board of Directors to update them about the financial status of the country club. d. Additional safeguards would be put in place regarding the Board’s authority to borrow money and enter into contracts on behalf of the country club. After discussion with the various committees, dollar thresholds should be established that require additional approvals from the country club members before the board moves forward on items such as major expansion or renovation projects. Additionally, the Board should consult with the finance committee more frequently to be apprised of the country club’s current financial status before entering into contracts or loans. 3a.
The IAS 7 describes this requirement by the cash flow information benefit which it gives. The IAS 7 specifies the rough structure of a cash flow statement and gives a definition of cash and cash equivalents. The cash flows have to be differianted into those attained from investing, operating and financing activities. IAS 8: Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies IAS 8 guarantees that all companies should present their income statement in consistent form. It outlines ordinary activities of businesses and requires disclosing of extraordinary items separately.
2.2.2 Functions of a Good Tax Administration A tax administration is all organizational set-ups for the management of the tax system. The tax administrative set-up is a department of government and of course works under regulations prescribed by tax legislation. Tax administration is the process of assessing and collecting taxes from individuals and companies by the authorities in such a way that correct amount is collected efficiently and effectively with minimum tax avoidance and tax evasion. The main objectives of a tax system is to guarantee the long-run fiscal soundness of the policies and programmes of government while the purpose of tax administration is to fully implement the tax system, that is, to ensure that tax payers comply with the provisions of tax laws and that the funds derived from tax sources are paid into the government purse. Some aspects of the tax system are preconditions for a successful tax administration.
According to the provisions of the Act, this two institutions are responsible for setting the accounting standards for Malaysia. The Financial Reporting Act 1997 have this new financial reporting framework, the role of standards formulate is commissioned to a statutory body independent of the accounting profession MASB. Then, FRF is responsible for overseeing the operation and performance of the MASB, also including financial results. Besides, FRF also serves as a detection board for the MASB, so that FRF will be the first to survey MASB’s the technical statement before goes to the public. MASB has been approved and issued accounting standards, formerly known as Malaysian Accounting Standards Board (MASB) be regarded as MAS B.
The government can charge three types of taxes on imports: import duties, commercial taxes and license fees. Commercial tax (CT) is charged for local production and sale of goods, importation of goods, trading and provision of services. For importation, commercial tax rate is
Usually, these charge are passed on to the consumer. 1.4.1 Sales Tax A sales tax is a tax paid to a governing body for the sales of certain goods and service. Usually laws allow or require the seller to collect funds for the tax from the consumer, it is usually called a use tax. Often laws provide for the exemption of certain goods or services from sales and use tax. 1.4.2 Central Sales Tax (CST)
They observe and steer governing actions and usually have exclusive authority to amend the budget or budgets involved in the process. Every administration has to have a list of PDPs of Philippine Development Plans. Every six years, these plans change alongside the changes in government leaders. These plans are composed of policy agenda based on emerging concerns on account of official statistics and other relevant data. The current government -- the Aquino administration –takes pride on its high budget allocation for basic education, health, conditional cash transfer or CCTs for the poor, and other social spending programs which include
It is compulsory, imposed on people or property within the jurisdiction of the taxing authority, and assessed by authority of the sovereign state based on some reasonable rule of appointment. Since it is an enforced contribution exacted to legislative authority, a tax cannot be imposed without clear and expressed words for that purpose, and a thing is not considered a tax unless it is plainly within the meaning of the word used. It is neither a debt nor a contractual obligation because tax is a statutory liability imposed upon all inhabitants of the state defined as taxable so they may contribute their just share to the expenses of the government