Audit the powerful, not the powerless

Title The Heyday of Fairness The Impact of Focused Audits on the Powerful, Not the Powerless

As a global tax policy expert and Chief Tax Advisor at Asian Consulting Group, I have witnessed firsthand the disproportionate burden audits can place on small businesses and entrepreneurs. President Ferdinand Marcos, Jr.'s recent directive to redirect the Bureau of Internal Revenue's (BIR) audit and enforcement efforts towards those implicated in the multibillion-peso flood-control scandal has brought a welcome sense of relief to many.

The Unfair Era of Audits

Prior to this shift, audits had become a major source of stress and uncertainty for small business owners. The constant threat of audits and penalties had created a culture of fear, making it difficult for entrepreneurs to innovate, expand, or even plan for the future. This era of unfair audits had taken its toll on the economy, stifling growth and innovation.

Power Dynamics in Audits

It is essential to recognize that power dynamics play a significant role in shaping the audit process. Those who are already powerful – whether due to wealth, influence, or political connections – have historically been able to navigate audits with ease, often leaving small businesses and entrepreneurs to bear the brunt.

The Devastating Consequences of Unfair Audits

Unfair audits can have devastating consequences for small businesses and entrepreneurs. The financial burdens of dealing with multiple audits and appeals can be crippling, forcing many to close their doors or drastically scale back operations. This not only harms individuals but also has a ripple effect on the economy, impacting jobs, innovation, and overall growth.

The Path Forward Fairness, Transparency, and Accountability

As we move forward in this new era of focused auditing, it is crucial that we prioritize fairness, transparency, and accountability. This means ensuring that audits are conducted in a way that is consistent, predictable, and free from political influence. It also requires providing support and resources to small businesses and entrepreneurs, helping them navigate the audit process with ease.

Conclusion

The heyday of unfair audits is behind us, but it is essential that we learn from this experience and work towards creating a more equitable system. By focusing on those who are powerful and well-connected, rather than the powerless, we can foster an environment where innovation, growth, and success are possible for all businesses – big or small.

Keywords Audit, Fairness, Transparency, Small Business, Entrepreneurship, Power Dynamics, Economy, Innovation

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.