by Manila Bulletin
Taxation is a very technical field, one that needs much studying, planning and forethought. As such, it would not be amiss for anybody to seek the advice of a well-respected accountant or tax lawyer—be it on a personal capacity or as the financial arm of a multinational company—particularly if the potential risk involved is substantial.
Atty. Benedicta Du-Baladad, managing partner of BDB Law—a law firm that combines the expertise of tax lawyers with certified accountants in one firm—asserts that there are certain things people need to remember in minimizing one’s exposure to taxes and fully maximizing one’s tax savings.
“There are actually two ways of minimizing one’s taxes: one is tax avoidance, which is lawful; while the other is tax evasion, which is unlawful. There is a clear but very thin dividing line between the two. When tax avoidance crosses the line of tax evasion, it becomes unlawful and criminal. Tax planners should be very careful not to cross this line,†explains Du-Baladad.
She said that with tax avoidance, taxpayers can advance the consummation of a transaction if a tax imposed on the transaction is applicable after a specified date in the future—this is lawful. Willfully under-declaring the sales or overstating one’s deductible expenses, however, is considered tax evasion and is highly illegal.
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Topic: Get the expertise of tax lawyers with certified accountants (Read 493 times)