Client Advisory Letter (February 2009)

Know the latest in Philippine Taxation
 Download the February 2009 issue
View / print (216 KBytes, 8 pages)


Lead article - Government and the global CEO: redefining success
This is a condensed report published by PwC’s Public Sector Research Centre (www.psrc-pwc.com), which gives insights and research into best practice in government and the public sector.

BIR issuances
  • BIR revokes recent VAT rulings issued to HMOs; clarifies its VAT liability (RMC Nos. 2 and 6-2009 dated January 15 and January 27, 2009)
  • BIR’s Oplan Kandado (RMO No. 3-2009 dated January 15, 2009)
  • Intensification of the collection of taxes not paid by EFPS taxpayers (RMO NO. 4-2009 dated January 9, 2009)
  • Tax consequences of liquidating dividends (DA(C-142) 455-2008 dated November 21, 2008)
  • Use of functional currency other than Philippine Peso (DA (TAR-004) 458-2008 dated November 24, 2008)


Other issuances
  • Department of Energy (DOE): Mandating a minimum of 2% biodiesel blend (B2) and 5% bioethanol (Department Circular No. DC2009-02-0002 dated February 5, 2009)
  • Intellectual Property Office (IPO): Guidelines on access to photocopying of trademark records (BOT Memorandum Circular No. 2, s.2009 dated February 12, 2009)
  • Department of Justice (DOJ): Foreign Equity Limitation of PAGCOR-licensed casino/gambling operators (DOJ Opinion No. 1, s. 2009 dated December 18, 2008)
  • Application of 60% Filipino ownership requirement to VASPs (DOJ Opinion No. 2, s. 2009 dated January 12, 2009)

Court decisions
  • Supreme Court (SC) : Legal and factual bases of the assessment must be stated in the FAN; preliminary letter and audit working papers not sufficient compliance with the requirement (G.R. No. 166387 dated January 19, 2009)
  • Court of Tax Appeals (CTA): Prescriptive period for deficiency VAT assessment counted from filing of the quarterly VAT Returns; Interest income on intercompany loans subject to VAT (CTA EB No. 367 dated January 29, 2009)