Reducing over deductions of taxes withheld projects through effective system of coordination

• Main Author: Mitra, Jordan Jefferson G.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Taxation; Tax deductions; Assistco Energy and Industrial Corporation
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5329
• Institution: De La Salle University

Assistco Energy and Industrial Corporation (AEIC) is an industrial company engaged in the manufacturing of refractory materials and services on the installation of supplied products. In this company, I work as an Internal Auditor and the Head of Project Accountants. Starting from the year 2012 until 2015 the company reports shows that AEIC was suffering from the yearly significant amount of over deductions of taxes withheld from project site employees. This over deductions of taxes withheld became the liability of the Company every year that was paid and distributed to the project site employees in the form of tax refund. The main objective of this study is to improve the coordination of the Project Accountant and their activities. In this study, the spirals of action research as the research design was used as the methodology and the conceptual framework used was Henry Mintzbergs Prime Coordinating Mechanisms. In Cycle 1 of the action research, the issue of lack of coordination among the Project Accountants and their activities was addressed by establishing coordinating mechanisms such as enhancing communication, assigning a coordinator, setting goals, and role clarification. Although positive changes transpired in the coordination of the Project Accountants, the set monthly target for over deductions of taxes with held projects was not achieved. This was because the monthly updates on the change of civil status of the project site employees was not coordinated. This had an impact on the movement of the project site employees personal and additional exemptions necessary for the computation of their taxes withheld. As such, in Cycle 2 of the action research, the succeeding intervention was the coordination of monthly updates on the change of civil status of the project site employees from the HR Supervisor.