Top Warning Signs Your Business Needs a Tax Health Check 

Think your business is tax-compliant? Think again. Many SMEs in the Philippines unknowingly face risks—missed filings, inaccurate deductions, outdated books—that can trigger BIR audits or steep penalties. 

A Tax Health Check is your preventive solution. It gives you a clear picture of your current tax compliance, flags potential risks, and helps you avoid costly issues before they escalate. 

Let’s break down the biggest red flags that signal it’s time to book a tax check-up—plus expert tips from our team at UNA Tax & Accounting Services. 

What is a Tax Health Check? 

A Tax Health Check is a professional diagnostic of your business’s tax position. Think of it as a check-up for your financial and compliance health. 

What it reviews: 

• Accuracy and timeliness of tax filings 
• VAT and withholding tax compliance 
• Proper documentation of expenses 
• Correct use of BIR forms and permits 
• Red flags that may trigger BIR audits 

Goal: Prevent penalties, disallowed deductions, and compliance issues before the BIR knocks on your door. 

7 Red Flags That Mean It’s Time for a Tax Health Check 

1. You’re Always Rushing to File 

Late filings lead to surcharges and missed deductions. 
Fix: Automate deadline reminders and update your books monthly. 

2. You Haven’t Reconciled Your Books in Months 

Outdated records? That’s a red flag for inaccurate reports. 

Fix: Use cloud tools like Xero or QuickBooks and schedule monthly reviews. 

3. You’re Unsure If You’re Withholding the Right Taxes 

EWT, Compensation, FWT—each has its own rate and rules. 
Fix: Double-check all BIR Form 2307s, 2316s, and your withholding schedules. 

4. You Don’t Know If You Should Be VAT-Registered 

If you’ve crossed ₱3M in annual sales, VAT registration is mandatory. 
Fix: Monitor your gross sales monthly and assess your VAT obligations. 

5. Your Deductible Expenses Are Poorly Documented 

No OR? No deduction. BIR will disallow expenses without proof. 
Fix: Secure official receipts for all major costs—especially rent, salaries, and utilities. 

6. You Haven’t Explored Tax Incentives 

You could be eligible for BOI, PEZA, or tax treaty benefits—and not know it. 
Fix: Ask a tax advisor if you qualify for available incentives or tax relief programs. 

7. You Recently Started or Restructured Your Business 

New setups often miss early registration steps or file the wrong forms. 
Fix: Do a post-registration check-up to make sure nothing was skipped. 

Real Risks Businesses Overlook (and How a Tax Health Check Helps) 

Case Study: When a Real Estate Firm Missed Quarterly Filings 

A mid-sized real estate business thought they were compliant—filing VAT monthly and withholding taxes. But during a BIR audit, it was discovered they missed two quarters of Income Tax Returns. 

Penalty cost: Over ₱200,000 
UNA’s Fix: 

• Identified gaps in their filing records 
• Filed the missing returns 
• Organized receipts and validated all deductions 

They avoided further charges and got back on track—fast. 

Key Benefits of Getting a Tax Health Check 

• Spot compliance gaps before the BIR does 
• Avoid penalties, back taxes, and audit triggers 
• Improve cash flow with smarter tax planning 
• Get peace of mind during permit renewals and loan applications 
• Build credibility with investors and regulators 

Let UNA Keep You #AheadWithUNA 

At UNA Tax & Accounting Services, we help SMEs across the Philippines stay audit-ready and compliant year-round. 

Our Tax Health Check Includes: 

• VAT & Withholding compliance review 
• Filing history & penalty risk analysis 
• Books of accounts reconciliation 
• Deduction and OR validation 
• Registration and BIR certificate check 

Book your FREE 15-minute Tax Health Check Consultation or email us at sales@una-acctg.com