Client Advisory Letter (April-June 2009)

Client Advisory Letter (April-June 2009)
Download the April-June 2009 issue
View / print (252 KBytes, 12 pages, PDF)

Lead article - US Supreme Court will hear Sarbanes-Oxley challenge

The Supreme Court agreed to consider a challenge to the Sarbanes-Oxley Act of 2002, the centerpiece of the government’s response to the watershed accounting scandals at Enron and Worldcom.

BIR issuances
  • SEC approval of merger retroacts to effective date of merger for purposes of compliance with BIR reportorial requirements (DA (S40-007-2009) dated March 31, 2009)
  • Purchase cost and freight-in expenses form part of Cost of Goods SoldRealized FX losses and not otherwise compensated by insurance are deductible business expenses (DA(C-047) 179-2009 dated April 1, 2009)
  • Twelve percent VAT should be added to rental payments when lessor becomes VAT-registered (DA (VAT-036)207-2009 dated April 22, 2009
  • Bad debts written off need not be declared in the SALN for purposes of TAP availment (DA (C-075) 257-2009 dated May 27, 2009)
  • Cash rebates granted to dealers who take title over the goods are not subject to withholding tax (DA (C-076) 258-2009 dated May 27, 2009)
  • Cost reimbursements are not subject to VAT, income and withholding taxes (DA (C-077) 259-2009 dated May 27, 2009)
  • Taxability of property dividends (DA (C-086) 284-2009 dated June 8, 2009

Other issuances
Administrative issuances

  • Qualification of independent directors (SEC Memorandum Circular No. 9, series of 2009 dated June 24, 2009)
  • Resolution facilitating the registration and monitoring of corporations (SEC Memorandum Circular No. 7, series of 2009 dated June 19, 2009)
  • Scale of fines for non-compliance with the SEC financial reporting requirements (SEC Memorandum Circular No. 8, series of 2009 dated June 24, 2009)
  • Revised Corporate Code of Governance (SEC Memorandum Circular No. 6, series of 2009 dated June 22, 2009)

Executive issuances

  • Presidential Adviser on Revenue Enhancement (PARE) to investigate cases in the Large Taxpayers units of the BIR (Administrative Order No. 263 dated May 6, 2009)
  • Regulations on Renewable Energy Act (DOE Circular No. DC2009-05-0008 dated May 25, 2009)

Court decisions 

Court of Tax Appeals (CTA)

  • Conditions for tax deductibility of expenses (CTA Case No. 6385 dated December 12, 2008)
  • Refund denied for failure to present original copies of the subsequent periods’ VAT returns (CTA EB No. 441 dated April 30, 2009)
  • Assessment sent to the old address valid where the taxpayer failed to give written notice of the change in address to the BIR (CTA Case No. 7099 dated May 06, 2009)
  • SEC certificate of non-registration not enough to prove that a corporation is engaged in business outside of the Philippines or not doing business in the Philippines (CTA Case No. 7186 dated May 13, 2009)
  • RTC jurisdiction over protest against local business taxes (CTA EB No. 413 dated June 3, 2009)

Meet us

Transition of leadership