Benchmark meaning tagalog9/12/2023 ![]() There will be lesser funds to build roads, schools, infrastructure, lower wages that decreases morale which leads to poor government services. On the opposite, if all income earners will illegally reduce the amount of tax obligations, the government will have no funds on hand and will resort to availing private or foreign loans in order to govern the country. More people having jobs, means more people having money to spend which will directly or indirectly improve your business as well. These factors can help attracting more investors and jobs in the Philippines. If all income earners will pay the right amount of tax, the government can collect more money to support its objectives such as building roads, schools, better government salaries and improve government services. The taxes we pay will go to the government funds that will be used in developing and improving the government facilities and life of Filipinos, inside and outside our country. Paying the right amount of tax is a social responsibility to the country. Social Responsibility and Contribution to the Country ![]() On the other hand, fraudulent and inaccurate will create an impression that the company is not trustworthy to invest with. Maintaining a truthful and accurate accounting and tax records will boost confidence of investors. These investors will look into your financial and tax records to support their investment decisions. In order to grow your business, at some point, you will need people or institutions with money that are willing to invest in your company. You can use your good credit rating when getting a loan for additional funds for the expansion of your business or other purposes. The higher the income and tax you declare, the higher the credit rating. Paying the right amount of tax provides good credit rating to financial institutions and agencies. However, if you are diligently filing and paying the right amount of tax, it’s easy to produce accurate income tax return without any risk. The risk on producing an inaccurate tax return is high because if the agency verifies it to the BIR, it will cause big trouble. As such, they resort to preparing inaccurate income tax returns in order to produce the said requirements. ![]() Some taxpayers, who do not file the correct amount of tax, encounters problem when they need to generate an Income Tax Return for purposes of VISA and Loan applications. You will have more peace of mind and you can focus in growing your business. If you pay the right amount of tax, you can eliminate these stress and anxieties. Sometimes it can affect even your personal life which gives you sleepless nights and anxieties. Peace of Mindīeing audited by the BIR may cause high amount of stress especially to taxpayer who intentionally or illegally, decreases their tax payments. If you want to eliminate BIR Audit, start paying the right amount of taxes. On the other hand, the BIR do not audit taxpayers who pay taxes above the said benchmark. The BIR does benchmarking based on industries, and if the taxpayers tax payments falls below the said benchmark, there’s a high probability that the BIR will audit the said taxpayer to validate the deficiency.
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