Client Advisory Letter (November-December 2008)

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Lead article: A Christmas message from the Chairman and Senior Partner
It is that time of the year again when reflections abound and reminiscing is the favorite pastime. It cannot be helped, it’s tradition.

BIR issuances
  • Increasing the top 10,000 private corporations to top 20,000 (RR No. 11-2008 dated August 15, 2008)
  • Implementing the optional standard deduction (OSD) of individuals and corporations in computing their taxable income (RR No. 16-2008 dated November 26, 2008/released December 18, 2008)
  • Director’s fees no longer subject to business tax (RMC No. 77-2008 dated November 24, 2008 but released/published on Dec. 9, 2008)
  • Guidelines and procedures in the issuance of TIN to SEC registrants (RMC No. 72-2008 dated November 3, 2008)
  • New limit on payments of internal revenue taxes thru RCOs (RMO No. 32-2008 dated October 3, 2008)
  • Monthly aggregated sales invoice deemed sufficient compliance with the invoicing requirements under the Tax Code (DA (TAR-005) 459-2008 dated November 24, 2008)
  • Transfer of shares in a domestic corporation among related non-resident foreign corporations (NRFCs) not subject to CGT (DA (C-105) 329-08) dated October 23, 2008)
  • Tax treatment of franchise fees (DA (C-101) 311-2008 dated October 17, 2008)
  • Purchase of vehicles by USAID subject to 0% VAT (DA-ITAD 096-08 dated November 7, 2008)
  • Exemption of business profits under the provisions of the Philippines-China tax treaty (DA-ITAD-083-08 dated October 29, 2008)

Other issuances
  • Office of the President (OP) : Contractual authority of Secretary of Energy involving mineral resources (Executive Order No. 751 dated September 15, 2008)
  • Department of Trade and Industry (DTI): Regulations on e-commerce transactions (Joint DTI-DOH-DA Administrative Order No.81 dated October 20, 2008)
  • Bureau of Customs (BOC): Accreditation of Information Validation Service Provider (IVSP) (Customs Administrative Order No. 7-2008 dated October 21, 2008)
  • BOC: Electronic lodgment of goods declarations (Customs Administrative Order No. 8-2008 dated October 20, 2008)

Court decisions
  • Supreme Court (SC): The right to claim refund of indirect taxes belongs to party statutorily liable for the tax (G.R. 171383 and 172379 dated November 14, 2008)
  • SC: Legality of the mode of acquiring documents from a taxpayer which became the basis of tax assessments (G.R. No. 177982 dated October 17, 2008)
  • Court of Tax Appeals (CTA): CTA has no jurisdiction where taxpayer failed to protest an assessment (CTA EB No. 217 dated November 28, 2008)
  • Legislative issuances: Proposed Simplified Net Income Taxation Scheme (SNITS) (H. B. No. 5521 by Representatives Javier, Nograles, Defensor (A); Susano; Codilla and Miraflores, per Committee Report No. 1512)

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