THE SENIOR CITIZEN discount privilege has been in focus again recently because of the proposed removal of its 12% vat exemption component as part of the tax reform proposals of the new government.
THE PHILIPPINES, a nation of a little over 100 million people and growing relatively fast, has been afflicted by widespread poverty for a long, long time now. When this article was being written, poverty incidence was estimated by the Philippine Statistics Authority (PSA) to be at 26.3% of total population in the first semester of 2015. As it turned out, the final rate for 2015 as released by PSA recently is 21.6%, a very surprising significant drop in six months.
The concept of Federalism has recently been getting special attention in Philippine political circles. Judging by the constant talk about it, it appears our elected officials are determined to push efforts to adopt a form of Federalism through Constitutional amendment as the new basis of the political and economic union of the Filipino people.
statements (FS) in relation to a resolution by the Board of Accountancy (regulator) requiring the submission of a “certificate” by the CPA preparer of the FS, which should be attached to the audited FS filed with the SEC and the BIR. Just for clarification, the FS preparer is a person separate and distinct from the external auditor. There have been continuing developments regarding the resolution but which do not cure the controversies that initially arose. As a long-standing member of the profession, I feel I have a responsibility to continue to express my thoughts on these persisting issues.
Undoubtedly, Senior Citizen Discount (discount) is a great benefit given to the senior citizens of the country. I am one of those benefited. The discount is 20 percent on the selling price plus exemption from 12 percent VAT, or a combined reduction of about 32 percent, depending upon how the VAT is computed in the invoice. That’s quite a lot.
This is the maiden issue of our column, From Where We Sit, which The Manila Times has graciously permitted us, Partners of P&A Grant Thornton, to write on a weekly basis. We consider this privilege a great honor. This first issue will cover accounting and will dwell on an ongoing controversy relating to the enforcement of business management’s responsibility in preparing the company’s financial statements (FS) before these are audited by external auditors.
