Executive Summary A BIR audit can involve much more than reviewing a single tax return. The Bureau of Internal Revenue has authority under the Tax Code to examine books, records, papers, and other information relevant to determining whether a taxpayer correctly reported and paid taxes. For business owners, the best preparation is not to wait until a revenue officer requests documents. Your tax returns, books of accounts, invoices, financial statements, withholding records, an

Executive Summary A corporation is expected to maintain more than its SEC Certificate of Incorporation. Under the Revised Corporation Code of the Philippines, corporations must keep and carefully preserve important corporate information and records at their principal office. These include incorporation documents, ownership information, directors and officers, business transactions, resolutions, SEC filings, and minutes of meetings. For stock corporations, the law also specifi

Executive Summary Not every BIR audit becomes a criminal case. Most tax examinations remain administrative or civil matters involving tax assessments, unpaid taxes, documentation issues, or disputed deductions. However, when the Bureau of Internal Revenue believes the evidence points to a possible criminal violation of the Tax Code, the case may be referred or filed with the Department of Justice (DOJ) for prosecutorial evaluation. The BIR is primarily responsible for adminis

Executive Summary Receiving your SEC Certificate of Incorporation is only the beginning of corporate compliance. Some post-registration requirements should be handled immediately, while others follow specific deadlines based on the corporation’s approval date, annual meeting, fiscal year, or business activity. The safest approach is to create a compliance calendar as soon as the corporation is registered. For ordinary domestic stock and non-stock corporations, the SEC current

Executive Summary Myth: Any BIR officer can walk into your business and conduct a tax audit. Fact: A BIR tax audit generally requires proper legal authority. A revenue officer performing assessment functions must be validly authorized to examine the taxpayer’s books and records pursuant to a Letter of Authority or LOA. Section 13 of the Tax Code expressly provides that a revenue officer may examine taxpayers pursuant to an LOA issued by the proper authority. The Supreme Court

Executive Summary Receiving a subpoena or summons in a tax case should be taken seriously. In Philippine tax investigations, the Bureau of Internal Revenue has statutory authority to require certain persons to appear, provide testimony, and produce books, papers, records, or other relevant information. Section 5 of the National Internal Revenue Code authorizes the Commissioner of Internal Revenue to obtain information and summon taxpayers, officers, employees, custodians of a

Receiving your SEC Certificate of Incorporation is an important milestone, but it does not mean that your corporation is automatically ready to operate without further compliance. After SEC registration, a Philippine corporation may still need to complete tax registration, local permits, employer registrations, internal corporate organization, accounting setup, and annual reportorial requirements. This checklist explains the major steps businesses should review after incorpor

Executive Summary Receiving notice of a BIR audit can be stressful, but preparation makes a major difference. A tax audit generally involves reviewing whether a business properly reported income, claimed allowable expenses, issued invoices, withheld and remitted taxes, maintained books of accounts, and filed the required tax returns. Business owners should not wait for an audit before organizing their records. The BIR currently provides separate systems and requirements for t

Executive Summary Not every BIR audit or unpaid tax automatically becomes a criminal case. Most tax disputes begin as administrative or civil matters involving returns, assessments, records, or unpaid taxes. Criminal exposure becomes more serious when the BIR believes there is evidence of willful tax evasion, deliberate false reporting, use of fictitious transactions, intentional failure to file or pay, or other violations punishable under the National Internal Revenue Code.

A practical guide to company name reservation, supporting documents, endorsements, and SEC registration requirements Choosing a company name may seem like a simple first step in starting a business, but the Securities and Exchange Commission (SEC) applies specific rules before a corporate or partnership name can be accepted. A proposed name must not only be available. It must also comply with the SEC’s rules on distinguishability, restricted words, industry-specific terms, an

Executive Summary Missing a BIR filing deadline does not automatically mean that your business is facing a tax audit or criminal case. However, late filing or late payment can still become expensive. Depending on the return, the amount due, and the taxpayer’s classification, the consequences may include surcharges, interest, compromise penalties, and possible compliance issues with the Bureau of Internal Revenue. BIR filing instructions also make clear that penalties may appl

Executive Summary The General Information Sheet, or GIS, is one of the most important annual reportorial requirements for corporations registered with the Securities and Exchange Commission in the Philippines. It gives the SEC an updated record of the corporation’s directors, officers, stockholders or members, principal office, ownership structure, and other important corporate information. For ordinary domestic stock and non-stock corporations, the GIS is generally due withi

Executive Summary Many taxpayers worry that receiving a BIR assessment means they can immediately be arrested. The short answer is no. A tax deficiency or unpaid tax is generally first a civil collection matter. The Bureau of Internal Revenue may assess the tax, add applicable penalties and interest, and pursue collection remedies against the taxpayer’s property. However, unpaid taxes can develop into a criminal tax case when the circumstances involve a willful violation of t

Executive Summary Corporate compliance in the Philippines does not end after registering a company. Throughout 2026, businesses may have separate reporting and payment obligations with the Securities and Exchange Commission (SEC), Bureau of Internal Revenue (BIR), and Bangko Sentral ng Pilipinas (BSP). The challenge is that these agencies regulate different areas. The SEC primarily monitors corporate existence, ownership, governance, and financial reporting. The BIR handles n

Executive Summary Tax avoidance and tax evasion both result in lower tax payments, but they are legally different. Tax avoidance uses methods allowed by law to reduce a taxpayer’s liability. This may include claiming valid deductions, using available tax incentives, or structuring a transaction under a lawful tax-saving provision. Tax evasion, on the other hand, uses fraud, concealment, false statements, or other unlawful methods to avoid paying taxes that are legally due. Th

Executive Summary Receiving an SEC Certificate of Incorporation means that your corporation has been legally created. However, it does not mean that all registration and compliance requirements are already complete. A newly incorporated company may still need to register with the Bureau of Internal Revenue, obtain local business permits, secure industry-specific licenses, organize its corporate records, and comply with annual SEC reporting requirements. Here are the most freq

Executive Summary Receiving a Certificate of Incorporation from the Securities and Exchange Commission is an important milestone. It confirms that the corporation has been legally created. However, the certificate does not mean that the company is already fully authorized and prepared to operate. After SEC registration, a corporation may still need to register with the Bureau of Internal Revenue, obtain local permits, set up its accounting and invoicing systems, appoint offic

Executive Summary Receiving a tax assessment from the Bureau of Internal Revenue does not automatically mean that a taxpayer has committed a crime. Most tax assessments begin as civil matters. The BIR identifies an alleged deficiency, asks the taxpayer to explain or pay it, and may pursue collection if the assessment becomes final. A criminal tax case may arise when the BIR believes that the taxpayer’s actions were willful, fraudulent, or deliberately intended to evade tax. E

Executive Summary Choosing a company name is an important step in registering a corporation in the Philippines. However, a name is not approved simply because it sounds creative or appears available in an online search. The Securities and Exchange Commission may reject a proposed company name if it is too similar to an existing name, misleading, legally protected, offensive, or inconsistent with the company’s intended business. Under the Revised Corporation Code, a corporate

Executive Summary Winning a case before the Court of Tax Appeals, or CTA, requires more than claiming that a tax assessment is incorrect. The parties must support their arguments with evidence that is relevant, reliable, properly identified, and formally offered to the court. The CTA may review tax returns, invoices, accounting records, contracts, BIR notices, proof of payment, witness testimony, and reports prepared by an independent certified public accountant. However, sim