I might as well write my experiences down before I totally forget them… But then again, how can a newbie entrepreneur really forget her first time encounter with the dreaded Bureau?
I’ve heard them all before..the awful under-the-table stories, accounting books and ledgers, meetings with BIR personnel, negotiations, bribes…ugh… I was wondering how can I possibly enter this unknown world of taxes? How will we somehow make earnings considering it’s just our first year without fearing that the BIR will get everything from us? We have talked to many businessmen… according to them, whether you are honest or not, the BIR will still be there to get you… so their suggestion? Hide and Bribe… Ugh, again… How can I find it in me… in us.. to do a dishonest thing?
Despite my apprehensions, I cannot, of course, get away without it. It’s like a problem that I have no choice but to deal with head on. I consoled myself with the thought that it is not just me who will be facing such dilemma. Also, after my long and stressful experience acquiring tons of permits, I am firmly set on putting a closure to all these hassles! I just wanted to teach with my friends in our very own school!
So I swallowed my nervousness and put on a brave face as I entered the confines of the Bureau. I went in, talked to Information, then headed to room 101. I talked to this rather intimidating guy who seem to regard me like an ignorant fool. I brushed that impression off and decided to be the dumb newbie that they regard me to be… asking all sorts of questions and all. They gave me a list of requirements and forms that I need to fill up and then I left.
I return the next day, armed with all that was required of me. The same person reviewed my documents and came across my contract of lease. If you will be renting out a place for your business there is a separate tax for this- 1601 E. This is supposed to be deducted from the rent but of course I could not demand this from the owner so we just pay the 5% tax. Anyway, the BIR personnel said that my contract of lease is exactly one month late from the date that it was notarized by the lawyer. He said, I will be paying a huge penalty if I do not get it replaced. He suggested that I returned this to the lawyer and have the document altered. Now there are a lot of complications here. First, I do not think the lawyer would agree to such risk of altering a document he already initialed. Second, I have submitted the same contract of lease to other offices and this would result to inconsistencies. My other option is to have another contract of lease made and pay 500 but then again, it would differ from the other contracts I have given to the others. I spent about a week thinking, talking to people, and trying to resolve this issue. Until I decided what the heck… I will just pay the penalty, for all I care!
So I went to BIR again only to find out that the electricity was out and all employees went home already. Now this is just irritating because BIR was in San Fernando and I live in Angeles. The next day, I went there again and said I am filing and using my current Contract of Lease. The BIR person then processed my papers and advised me to go to their Assistant Deputy who thankfully was God sent! He was very kind as I explained that processing the business permit took a long time, hence, my contract of lease is a month late. He said that it is OK and he won’t ask me to pay any penalty. I was so relieved! I left his office beaming with pride and so my papers were processed and I was scheduled to attend the BIR Tax Seminar on the coming Friday.
Now, if there are some things that I still remember about the seminar, those would be- penalty, penalty, and more penalties! Gosh, it was like, “We will be keeping an eye… watch out or die!” I was pretty much freaked out as I incessantly jot down notes and posted reminders on my calendar. I did everything I was told… from having my receipts made to a suggested printing press to buying my books right there and then and having them signed. What made everything unbearable is the fact that I do not have any accounting background. It was crazy to be groping in the dark… confused and naive. I cannot do this… I cannot be an overnight accountant, let alone a bookkeeper. So, I packed everything and went home. I and my colleagues arranged for a meeting with a knowledgeable person. We decided to ask for her services just so we can have this load off our shoulders.
The important realization that we’ve had is that we, the four of us, cannot do it alone. Good thing we have a steady stream of supporters who are willing to work for us at a considerable and friendly fee… So far, despite the hurdles, everything is falling into their proper place! In business, there is so much to learn and discover! Overall, this has and always will be a joyous adventure… regardless!
Wow, that was a really great read! I’m going to bookmark your blog for sure