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We’re nearly two years into the pandemic and another year is coming to an end. While businesses are expecting significant improvements in the results of their operations this year, they should also be mindful of various compliance requirements.

THEY say a small leak will sink a great ship. But this is not about leaks, nor anything related to sea vessels. It speaks about spending that, when not properly recorded and accounted for, can put a dent on savings over time. Personal money management does not require a sophisticated process and usually, sticking to an expenses plan and setting the right financial goals do the trick. However, for cost management intended for businesses, a different ball game is needed.

Article 5 of the Labor Code of the Philippines, as renumbered, and Presidential Decree No. 851 mandate every employer in the private sector to pay their rank-and-file employees with 13th month pay. To reiterate this responsibility, the Department of Labor and Employment (DOLE) has issued Labor Advisory No. 18, which emphasizes the guidelines on the payment of 13th month pay for calendar year 2021.

Christmas is fast approaching and the whole world is slowly emerging from the ravages of the pandemic. While most people are getting busy preparing their gifts and menus for Noche Buena, taxpayers are reminded of year-end tax compliance and other reporting requirements. To name a few: taxpayers need to comply with filing and submission of annual information returns and their attachments, books of account, and withholding tax certificates, as well as the filing of Requests for Confirmation (RFC) for income payments to nonresidents which were subjected to tax treaty rates or preferential rates.

The ongoing impact of the COVID-19 pandemic continues to pose an unprecedented amount of financial pressure on many businesses and increase in economic uncertainty for others. Nearly two years into this pandemic, economic forecasts suggest that some pressures are likely expected to ease along with the initial steps taken towards economic recovery. As we near the end of the calendar year, management of companies will have to re-assess how these economic conditions affect companies’ ability to continue as a going concern. Auditors, on the other hand, will have to practice enhanced professional skepticism in validating management’s representations on whether companies are indeed out of the woods or are still caught up in the downturn brought by the pandemic. Disclosures regarding going concern will be of utmost importance in providing transparent and relevant information to users of financial statements.

The Social Security System (SSS) signed Circular No. 2021-14 last October 29, 2021 which allows SSS member-borrowers to fully settle their outstanding loan balance, composed of principal and interest, with condonation of penalty.

As the Philippine economy steps on nascent recovery from the COVID-19 pandemic, the headline inflation remains high at 4.6% in October 2021 from 4.8% in September 2021. Except for June 2021, headline inflation rests well above the 2% to 4% target band of the Bangko Sentral ng Pilipinas (BSP). Could this high inflation just be transitory or the beginning of a longer-term problem? This is one the most important questions for the global economy now as central bankers and policymakers are divided.

A rise in election campaign spending is anticipated, albeit in more creative ways as we are still coping with the COVID-19 pandemic. According to the Philippine Center for Investigative Journalism (PCIJ), some P5.8 billion was spent during the 2016 polls, with major spending on ad placement in various media platforms — and that is assuming that there were no misstatements in the Statement of Contributions and Expenses submitted by the political candidates to the Commission on Elections (Comelec).