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August 2013
TMAP MONITOR TMAP 6th Golf Tournament Held
Golfers posing at Hole No. 1.
Overall champion – Mr Benjie Lerma receiving his trophy.
The much awaited 6th TMAP Golf Tournament was held last July 26, 2013 at the Ayala Greenfield Golf & Leisure Club in Calamba, Laguna.
supported the event as bronze sponsors.
More than 60 avid golfers participated at the tournament. This year’s winners were led by the Tournament Overall Champion, Mr. BENJIE LERMA.
The winners for the Men's Class A Division were: Champion - Mr. Orlan Bancoro 1st Runner-up - Mr. Joey Benedicto 2nd Runner-up - Mr. Richard Querido
Smart Communications, Inc. and Manila Electric Company are this year’s silver sponsors. Various other organizations and member firms
For the Men's Class B Division, the winners
Overall Champion in the Ladies' Division was Ms. Bernadette Baniqued.
Continued on page 3
Updates on RATE cases and TMAP Position Papers in July GMM For its July general membership meeting, TMAP invited the Department of Justice (DOJ) to provide an update of the Run After Tax Evaders (RATE) cases filed by the Bureau of Internal Revenue (BIR) with the DOJ.
investigate and/or prosecute individuals or entities involved in tax evasion and other criminal violations of the National Internal Revenue Code. RATE cases, with deficiency tax assessments of at least P1.0 million per year and tax type, are endorsed to the DOJ
The RATE program was initiated by the BIR to
Continued on page 3
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August 2013
Highlights of the Golf Cup
Loot bags for the golfers.
TMAP President Euney Mata Perez and BOD Members Lea Roque and Sherry Obiles-Baura pose with the golfers.
Atty. Carlo Baniqued receives his Nearest to the Pin Special Award ( Hole #3)
Overall Champion in the Ladies' Division Ms. Bernadette Baniqued
Men's Class A Champion - Mr. Orlan Bancoro awarded by TMAP Past President Atty. Leny Oxales.
BOD Members with Past President Atty. Leany Oxales
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Golf Cup From p. 1
were: Champion - Mr. Joel Javier 1st Runner-up - Mr. Frank Post 2nd Runner-up - Mr. Jun Caramat For the Men's Class C Division, the winners were: Champion - Mr. Cocoy Letua
July GMM From p. 1
for preliminary investigation and/or prosecution. After preliminary investigation, the DOJ files cases with the Court of Tax Appeals for those where probable cause has been established. Senior Assistant State Prosecutor Susan Dacanay disclosed that out of the approximately 180 cases that were filed before the DOJ since 2010, around 30 cases were filed with the Court of Tax Appeals and 30 cases were dismissed. Atty. Dacanay attributed the prolonged investigation period to the
Further extension for validity of ORs Various position papers and representations with the Bureau of Internal Revenue (BIR) must have finally worked as tax agency further extended the validity of unused/unissued principal and supplementary official receipts and invoices. The BIR, however, emphasized that receipts/invoices with Authority to Print (ATP) dated prior to January 1, 2011 will not be extended. These shall be valid until August 30, 2013.
August 2013 1st Runner-up - Mr. Seneca Francisco 2nd Runner-up - Mr. Roman Esguerra Special prizes were also awarded. Nearest to the Pin ( Hole #3) was awarded to Atty. Carlo Baniqued. The Longest Drive Prize (Hole #13) belonged to Mr. Robert Nazal and Ms. Bernadeth Baniqued. Finally, the Most Accurate Drive was awarded to Mr. Christopher Ferrareza.
volume of pleadings filed and lack of prior formal assessment by the BIR. Also during the July GMM, TMAP President Atty. Euney Mata-Perez apprised the members of the recent position papers filed with the BIR and advocacy efforts particularly on Revenue Regulations (RR) No. 12-2013 (deductibility of expenses), RR No. -2013 (fair market value of shares subject to sale), Revenue Memorandum Circular (RMC) No. 39-2013 (additional requirement in protests), and RMC Nos. 892012 and 1-2013 (advances and deposits).
Receipts/Invoices with ATP dated January 1, 2011 to January 17, 2013 shall be valid until October 31, 2013 provided the new ATP was issued on or before August 30, 2013. If the application for new ATP was filed after April 30, 2013, it shall be deemed to have been filed out of time and subject to P1,000 penalty. In case of principal and supplementary receipts/invoice which can be used until October 31, 2013, the term “valid until October 31, 2013 only� shall be stamped prominently on the face of the receipts or invoices (original and duplicate copies). Continued on page 4
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TMAP ASKS BIR TO DEFER AUGUST 30 DEADLINE FOR RECEIPTS USE The Tax Management Association of the Philippines (TMAP) filed with the Bureau of Internal Revenue (BIR) its request to further defer the August 30, 2013 deadline for the validity of unused receipts and invoices. Previously, the BIR acceded to the request of many business and taxpayer groups, including TMAP, to extend the deadline for another two (2) months from June 30, 2013 to August 30, 2013. In its letter filed last July 29, 2013, TMAP requested Commissioner of Internal Revenue (CIR) Kim Jacinto-Henares that the deadline be further moved to December 31, 2013. Alternately, TMAP also recommended a staggered deadline for the validity of unused receipts and invoices based on their date of printing, unless they are fully utilized before the end of the validity period. For example, TMAP proposed the following staggered deadlines for unused invoices/receipts: - Printing date before January 1, 2012: December 31, 2013 - Printing date from January 1 to December 31, 2012: June 30, 2014
August 2013
- Printing date from January 1, 2013 onwards: December 31, 2014 TMAP requested that the deadline be further deferred in light of serious concerns raised by many of its members and other taxpayers, which find the two-month period still inadequate for BIR-accredited printers to service ALL the printing requirements of registered taxpayers. Todate, there are only about 2,500 to 3,000 BIRaccredited printers nationwide, compared to millions of registered taxpayers nationwide. This situation would likely result in the failure of a substantial number of taxpayers to comply with the BIR receipting requirements, even if they are not at fault. TMAP also reiterated its request, which was made in its previous letter dated May 31, 2013, that taxpayers be given thirty (30) days, instead of the prescribed ten (10) days, from deadline within which could submit unused receipts or invoices for destruction at the BIR offices. The 10 dayperiod is considered very tight, especially for large taxpayers that have branches nationwide and are required to submit them to their respective head offices for BIR destruction.
Further Extension From p. 3
To ensure compliance with the new ATP/invoicing requirement, the BIR shall conduct tax compliance verification drive by matching the taxpayer's database against the ATPs issued as of January 18, 2013.
Moreover, a certified true copy of the ATP shall be included as attachment in any application for tax clearance. Hence, the non-submission of ATP shall be a ground for non-issuance of tax clearance.
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www.tmap.org.ph TMAP ASKS BIR TO CLARIFY NEW RULE ON RECEIPT OF PROTEST LETTERS The Tax Management Association of the Philippines (TMAP) filed with the Bureau of Internal Revenue (BIR) its request to clarify the rules under Revenue Memorandum Circular (RMC) No. 39-2013 dated April 4, 2013 regarding BIR internal procedures in the filing and reporting the receipt of protest letters from taxpayers. RMC 39-2013 required that revenue officials shall be primarily responsible in ensuring the preparation of a complete and accurate report on all protest letters that were filed by taxpayers in connection with tax assessments. The revenue officials are required to promptly submit to the Office of the Commissioner of Internal Revenue (CIR) a weekly report, which then becomes the basis for the preparation of a master database of all protest letters filed by taxpayers. In its letter filed last August 7, 2013 with CIR Kim Jacinto-Henares, TMAP recognized the wisdom and importance for the BIR of creating a complete and accurate database to efficiently manage and monitor all taxpayer protest letters. However, TMAP expressed its concern over a provision in the rules that would affect or prejudice taxpayers’ right to protest.
August 2013 TMAP noted under the rules that the failure of the concerned revenue officials to comply with the guidelines will render the protest “void and without force and effect.” Also, the rules provided that any protest allegedly filed with the BIR but not included in the database “shall be deemed as not officially filed with the Bureau and shall not be used as basis for the grant of any request for reinvestigation/reconsideration of any Final Assessment Notice or Final Decision on Disputed Assessment issued against the taxpayer.” With this, TMAP sees that the internal BIR rules effectively make it more burdensome for a taxpayer to file protests with the BIR since taxpayers are required to ensure that the protest is reported and recorded by the BIR officers and such requirement is not even stated in the law. TMAP also believes that any failure on the part of revenue officials to comply with the BIR internal guidelines, which is not within the taxpayer’s control, should not be detrimental to the taxpayer’s right to protest. As such, TMAP has requested the BIR to issue an RMC to clarify that the accountability for the recording and encoding of protests would solely be on the part of concerned revenue officials and that this should not affect the taxpayer.
Join our Facebook page Tax Management Association of the Philippines (TMAP).
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August 2013
The Tax Management Association of the Philippines, Inc. is a non-stock corporation founded on October 22, 1981 established primarily to professionalize tax practice and provide a channel by which the private sector may actively participate in the drafting of tax laws, rules and regulations.
rulings, regulations, issuances, decisions and policies through habitual seminars conducted by experts in government and in the private practice. The Association also conducts regular dialogues with pertinent government officials on policy issues affecting its members.
At present, TMAP has over 100 members most of whom belong to, or act as consultants for, the top 1,000 corporations. The Association has been instrumental in the development and promotion of reforms in the country’s tax laws and in tax administration by actively participating in public hearings and submitting position papers in connection with the passage of revenue laws, rules and regulations. TMAP raises the level of professionalism and technical competence among its members by keeping them abreast of the latest tax
TMAP has instilled and continues to instill among its members competence, professionalism and integrity in tax practice. TMAP believes that responsible tax practice is indispensable to the country’s economic growth and development.
More Golf Pics
Loot bags for all the golfers and attendees
TMAP IVP Atty. Raymund Gallardo delivered the closing remarks.
Publications Committee: Leilah Yasmin E. Alpad Terence Conrad H. Bello Eleanor L. Roque 6