Integrated Reporting

In this issue

  • Integrated Reporting

Bureau of Internal Revenue (BIR)

  • Amendment of RR No. 2-98 on deductibility of expenses (RR No. 12-2013 dated 12 July 2013 as clarified by RMC No. 63-2013 dated 26 September 2013)
  • Guidelines on the issuance and revalidation of tax exemption rulings (TER)/certificates to qualified nonstock, non-profit corporations and associations (RMO No. 20-2013 dated 22 July 2013)
  • Detailed guidelines on the Electronic Official Register Book (eORB) System (RMO No. 23-2013 dated 23 July 2013)
  • “Tentative income tax returns” are final returns (RMC No. 50-2013 dated 15 July 2013)
  • Clarification on the validity of unused receipts/invoices printed prior to 18 January 2013 (RMC No. 52-2013 dated 13 August 2013)
  • Clarification on taxation of donations to homeowners’ associations (RMC No. 53-2013 dated 16 August 2013)
  • Validity of provisional accreditation granted to certain printers is extended until 31 December 2013 (RMC No. 54-2013 dated 15 August 2013)
  • Taxation of online business transactions (RMC No. 55-2013 dated 5 August 2013)
  • Unutilized input VAT cannot be claimed as outright deduction for income tax purposes (RMC No. 57-2013 dated 23 August 2013)
  • Amending the instances when PTC may be issued (RMC No. 58-2013 dated 30 August 2013)
  • Compensation of a General Manager is not deductible under 5% gross income tax regime (BIR Ruling No. 092-2013 dated 5 March 2013)
  • Access to proprietary information is know-how subject to tax as royalties (BIR Ruling No. ITAD 147-13 dated 24 May 2013)
  • Sale of goods by a foreign company to overseas customers but delivered by a Philippine toll manufacturer is subject to Philippine tax (BIR Ruling No. ITAD 169-13 dated 19 June 2013)

Court decisions

  • Failure to pay deficiency tax within the deadline indicated in the FAN is subject to delinquency interest (G.R. No. 197117 dated 10 April 2013)
  • Failure to strictly comply with administrative TTRA requirements should not deprive taxpayers of treaty benefits (GR No. 188550 dated 19 August 2013)
  • Forum shopping refers to the filing of multiple cases involving the same parties, causes of action and reliefs sought (CTA EB No. 852 dated 17 June 2013)
  • Waiver of the statute of limitations on assessment of taxes should be strictly construed against the government (CTA EB No. 889 dated 26 June 2013)
  • Higher interest of substantial justice prevails over technical rules of procedure (CTA EB No. 917 dated 25 June 2013)
  • Procedures on the execution of a waiver of the statute of limitation must be strictly complied (CTA EB No. 879 dated 17 June 2013)
  • A claim for refund or TCC of unutilized input tax is governed by Section 112, not Sections 204(C) and 229 of the NIRC which pertain to recovery of erroneously collected input tax (CTA Case No. 7951 dated 5 July 2013)
  • Presentation of the ITR of the succeeding year is not required for refund of CWT (CTA EB No. 897 dated 29 July 2013)
  • Under the LGC, the phrase “tax on businesses enjoying a franchise” refers to secondary or special franchise (CTA AC No. 94 dated 3 June 2013)
  • Sale to non-members of refined sugar is not subject to advance VAT only if the cooperative is the agricultural producer of the sugar cane (CTA EB No. 846 dated 5 June 2013)
  • Prescriptive periods for filing administrative and judicial claims for tax refund/Exception to the 120+30 day rule (CTA Case No. 8012 dated 26 June 2013)
  • Payment of royalties, as a condition of sale of imported goods, is subject to customs duties and VAT (CTA Case No. 7901 dated 24 June 2013)
  • A demand letter of the BIR, clearly resolving a protest on the disputed assessment, is deemed an FDDA (CTA Case No. 8491 dated 8 July 2013)
  • A tax exemption enjoyed by the buyer cannot be the basis of a claim for exemption from excise tax by the importer/manufacturer of the goods (CTA Case No. 8049 dated 11 July 2013)
  • Failure to comply with the 30-day period to appeal deprives the CTA of its jurisdiction to decide a case (CTA EB Case No. 915 dated 15 July 2013)
  • Application of net worth method to establish taxable income must follow required procedures (CTA Case No. 8187 dated 23 June 2013)
  • BIR Ruling No. DA-489-03 does not obliterate the 30-day period for filing an appeal (CTA EB No. 862 dated 26 June 2013)
  • To qualify for CWT refund, presentation of quarterly income tax returns is necessary (CTA EB No. 861 dated 5 June 2013)
  • Observance of the 180+30 days rule on tax assessment/investigation is mandatory and jurisdictional (CTA Case No. 8149 dated 24 June 2013)
  • Taxpayer has the burden of proving with sufficient documentary evidence that a business expense is deductible and not subject to income tax (CTA EB No. 911 dated 31 July 2013)
  • Certificates of registration with incentive-granting government agencies must be effective during the tax period of the excess input VAT claim (CTA Case Nos. 7898, 7980 and 8008 dated 24 July 2013)
  • Medical insurance expense is not subject to withholding tax on compensation if it satisfies certain conditions under the NIRC (CTA Case No. 8281 dated 25 July 2013)
  • Authority of provincial government to impose franchise tax shall not extend to territories covered by any city located in the province (CTA AC No. 92 dated 25 July 2013)

Executive issuances

  • Establishment of two separate rediscounting windows (BSP Circular No. 806 dated 15 August 2013)
  • Changes in the exporters’ dollar and yen rediscount facility (EDYRF) (BSP Circular No. 807 dated 15 August 2013)
  • Senior citizens priority lane in BSP-supervised financial institutions (BSIs) (BSP Circular No. 805 dated 18 August 2013)
  • New guidelines for managing IT risks for banks (BSP Circular No. 808 dated 22 August 2013)
  • Increase in the maximum foreign ownership for rural banks (BSP Circular No. 809 dated 23 August 2013)
  • New rules on the issuance of long-term negotiable certificates of time deposits (LTNCTDs) (BSP Circular No. 810 dated 30 August 2013)

Other issuances

  • Amended Insurance Code (RA No. 10607 approved 15 August 2013)

Meet us

  • Isla Lipana & Co. celebrates 91st anniversary with a leadership handover and “The Philippine Gems” launch