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 Php7.5M which comprises a 30% under declaration of sales.   What necessary action must be done by the company in relation to its discovery?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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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 Php7.5M which comprises a 30% under declaration of sales.

 

  1. What necessary action must be done by the company in relation to its discovery?
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