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 7,500,000 which comprises a 30% under declaration of sales. a. What necessary action must be done by the company in relation to its discovery? b. 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? Justify your answer
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 7,500,000 which comprises a 30% under declaration of sales. a. What necessary action must be done by the company in relation to its discovery? b. 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? Justify your answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 7,500,000 which comprises a 30%
under declaration of sales.
a. What necessary action must be done by the
company in relation to its discovery?
b. 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? Justify your answer
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