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B I R M A G I C A L S P A C E N O R E N T

EMELINO T MAESTRO BELIEF AND CONVICTION

Unknown to many taxpayers, corporations, associations, partnerships, cooperatives and other organizations having common [1] owners and stockholders, [2] ofcers and employees, [3] external CPAs and counsels, and [4] principal placeof business are the immediate BIR audit candidates. Sharing commons is a RED FLAG for BIR to assume and presumethat something shy is cooking. ETM will take you to a tour.

OWNERS AND STOCKHOLDERS. The common owners and stockholders of multiple corporations usually decide

what will be the courses of action. Cash derived from sale of goods and services could be hidden as either capitalcontributions of interlocking owners and stockholders or charitable contribution by protable corporation to anothercorporation. Then, the recipient corporation either buy from this cash luxury vehicles and residential houses which are inthe sole disposal and use of the same owners and stockholders. The symptoms are very simple which is the increasing numbers of non stock non prot foundation having the same place of business toget her with its major sponsors.

OFFICERS AND EMPLOYEES. Using a foundation, the cash donation of protable corporation is also used topurchase vehicles and condos for the exclusive use of their common ofcers and employees. Since most of these commonofcers and employees are usually considered volunteers of the foundation, their use of vehicles and condos are not subjectto fringe benet tax due to the fact that an employee-employer relationship between them does not exist. Thus, depriving the State to collect the FBT if the protable corporation owned these vehicles and condos. Adding more salt to the wound,the donation made to the foundation is deductible in full from the gross sales of the protable corporation.

EXTERNAL AUDITORS AND COUNSELS. The most protable corporation shoulders the expenses not only forthe professional fees of CPAs and counsels serving the group but most importantly, the utilities such as telephone, waterand electricity bills, ofce supplies, furnitures and xtures, and salaries and employees are agreeably charged to its account.Thus, uncollected value added and income taxes due to improper or no allocation of expenses amount the group areseldom paid to the State.

PRINCIPAL PLACE OF BUSINESS. Finally, expenses related to rent, improvement, betterment of the ofce or placeof business is shouldered by the most protable corporation even thought the benet of using the same is commonly sharedby the group. Again, the income and value added tax payment are understated.

ETM ADVISES the ofcers and employees of all multiple corporations sharing commons to adopt legal measures thatis acceptable to the taste of laws because sooner, the BIR shall mandatorily allocate their revenues and expenses based on

gross sales, receipts or similarly situated taxpayers.

Attend the School for Tax Consultant so that promotion and protection of rights and privileges can be maximized.Thus, saving life, family and fortune. Call Cess 742 0382

Enroll at School for Tax Accountants so that no more guessing when doing an accounting. Call Len 439 3918

ASK@MAESTROTAXATION.ORG0922 801 0922

Remember ETM means TAX SHELTER and LIFESAVER.

Get 50% discount from ETM PF for reducing LN Tax Deciency Assessments; valid until July 16, 2011 only

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