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Author Topic: Need a second opinion regarding ITR filings  (Read 4706 times)

superfunkibey

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Need a second opinion regarding ITR filings
« on: April 22, 2015, 10:18:53 am »
Hello people,

I hope I can get another opinion so I can better understand.  At the moment I am a sole proprietor engaged in a small food business, it is Vat registered and I pay all the appropriate taxes.

I am also the owner of a piece of property which I am renting out, this is located in another city and I also have a business permit for it.

My dilemma is this.

My current CPA has advised me not to declare my rental income on my ITR as this will adversely affect the taxes I will have to pay on my business.  He gave the example of increasing my business renewal payment as the gross rental will be added to my annual sales. 

He said something like because I cannot file separate ITR's

Is this correct?  I want to do the right thing but am conflicted if doing so will negatively impact my financial situation.

I hope for your sound advise.  Thank You

superfunkibey

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Re: Need a second opinion regarding ITR filings
« Reply #1 on: April 22, 2015, 10:25:53 am »
Sorry for the multiple posts.  Crazy error. Please moderators delete the duplicates.

Ladylhin

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Re: Need a second opinion regarding ITR filings
« Reply #2 on: April 22, 2015, 12:46:38 pm »
 do the right thing..declare your rental income,that would be the effect of it.as your income came up,so your taxes are.. if the bir found it, much bigger penalty will be imposed upon you..

superfunkibey

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Re: Need a second opinion regarding ITR filings
« Reply #3 on: April 23, 2015, 08:43:39 pm »
Hello,

Sorry if my post wasn't clear.  My concern isn't that my income taxes will go up, that's understood.

The issue is that by declaring a higher income, the amounts I pay for my food business tax will also go up, even when the additional income is in no way related to my food business.  QC business tax is based on yearly gross.

This is how my CPA explained it and it struck me as really dumb and unfair and BIR should address this and not make things more convoluted and imbalanced.

superfunkibey

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Re: Need a second opinion regarding ITR filings
« Reply #4 on: April 30, 2015, 08:00:14 am »
Nothing?  Seems this forums dead already.

TaxGadget

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Re: Need a second opinion regarding ITR filings
« Reply #5 on: October 03, 2015, 09:48:49 am »
It wont affect your business tax for your food business. When you declare it you should indicate separately your food business income separate from your rental income. With that they will just make the appropriate business tax for your businesses separately. If your business is both located at QC then you will have a separate business tax for each and not combined.

Your accountant is wrong by the way.

 

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