ed its Annual Income Tax Return for the taxable year 2018 on April 15, 2019 together with its required attachments such as the Audited Annual Financial Statements. On March 17, 2020, the company’s accountant discovered an error for excluding a sales amounting to Php7.5M which comprises a 30% under declaration of sales.   What necessary action must be done by the company in relation to its discovery? Assume that the company was subjected to a BIR audit or was issued a Letter of Authority (LOA) prior to the amendment of its Annual Income Tax Return, is the comp

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A corporation filed its Annual Income Tax Return for the taxable year 2018 on April 15, 2019

together with its required attachments such as the Audited Annual Financial Statements. On

March 17, 2020, the company’s accountant discovered an error for excluding a sales

amounting to Php7.5M which comprises a 30% under declaration of sales.

 

  1. What necessary action must be done by the company in relation to its discovery?
  2. Assume that the company was subjected to a BIR audit or was issued a Letter of Authority (LOA) prior to the amendment of its Annual Income Tax Return, is the company allowed to make any amendment?
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