Partners for real change: Cultivating a culture of accountability and integrity

 Economy
Dec 072016
 

In an attempt to generate a greater sense of accountability among tax officials conducting investigations and to ensure an effective feedback mechanism for taxpayers, two new tax issuances were recently released — Revenue Memorandum Order Nos. 54-2016 and 61-2016.
Through RMO 54-2016, the Bureau of Internal Revenue (BIR) created a Special Disciplinary Committee for the purpose of investigating revenue officers over questionable tax audits and investigations. The committee was established for the expeditious investigation of revenue officers who failed the test of integrity, competence, and efficiency in the performance of their audit functions or in the conduct of tax investigations uncovered in the process of implementing Revenue Memorandum Circular (RMC) No. 70-2016. Readers may recall that RMC 70-2016 suspended all field audits and investigations including issuances of Letters of Authority subject to certain exceptions. Moreover, it ordered the inventory of existing tax investigations.

To lump payees in the alphalist or not: that is the question

 Economy
Sep 222014
 

AT THE start of the year, the Bureau of Internal Revenue (BIR) issued Revenue Regulations No. (RR) 1-2014 and Revenue Memorandum Circular No. (RMC) 5-2014, which tackled the submission of the alphabetical list (alphalist) of employees and list of payees on income payments subject to creditable and final withholding taxes of all withholding agents. These issuances require that complete names of payees be specified in the alphalists. Using words such as “various payees” and “PCD nominees” where income payments and taxes withheld are lumped into one single amount shall not be allowed and failure to follow such prescribed format shall disqualify the related expenses from being deductible for income tax purposes.

The right to due process in a tax assessment

 Economy
Mar 052014
 

THE BUREAU of Internal Revenue (BIR) has the gargantuan task of collecting P1.4 trillion in tax revenue for 2014. Consequently, various revenue issuances have been circulated to enhance tax compliance and intensify collection efforts. One such issuance is Revenue Memorandum Circular (RMC) No. 11-2014, clarifying certain issues arising from amendments introduced by Revenue Regulations No. 18-2013 on RR 12-99 relative to the tax assessment process. In fine-tuning policy interpretations, the RMC raises several points of interest.

Tax treatment of deposits, cash advances

 Economy
Feb 252013
 

THE BUREAU of Internal Revenue’s (BIR) new issuance, Revenue Memorandum Circular No. 16-2013 (RMC 16-2013) clarified the tax treatment of deposits/advances given by clients/customers to their suppliers/providers. This new issuance is an offshoot of RMC 89-2012, which involves cash advances given to General Professional Partnerships (GPPs). Unlike RMC 89-2012, RMC 16-2013 covers all taxpayers, other than GPPs, doing business in the Philippines. The latter details all the tax implications to and obligations of the taxpayer and the client for purposes of recording and documentation of the deposits/cash advance made.