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Issue 7, July 2013
TMAP MONITOR TMAP Attends BIR-Performance Governance System Multi-Sector Governance Coalition the community and its processes thus heightening transparency and accountability. The following are the members of the BIR-PGS MSGC who will act as an oversight body to encourage and assist the BIR in realizing its vision and strategic direction: • • •
Upon the invitation of BIR Commissioner Kim S. JacintoHenares, TMAP, through President Euney Marie J. MataPerez, attended the meeting of the BIR-Performance Governance System (BIR-PGS) Multi-Sector Governance Coalition (MSGC) on June 14, 2013. The MSGC was created to assist in the implementation of the BIR-PGS. The MSGC is composed of external stakeholders responsible in ensuring that strategies of public organizations and institutions are responsive to the needs of
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Makati Business Club Management Association of the Philippines Philippine Institute of Certified Public Accountants Tax Management Association of the Philippines Kapisanan ng mga Brodkaster ng Pilipinas Millennium Challenge Account – Philippines Ateneo School of Governance Jesse M. Robredo Institute of Governance De La Salle University
The June 14, 2013 meeting served as an introduction of all MSGC members to BIR officials and the presentation of the MSGC roles and responsibilities.
TMAP and Ateneo Law School Sign MOA On June 26, 2013, TMAP signed a Memorandum of Agreement with the Ateneo de Manila Law School to establish a mutually beneficial partnership and cooperation towards the attainment of the following goals, among others: •
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Improvement of the quality of tax education. TMAP and Ateneo shall jointly undertake tax seminars, symposiums, forums and round table discussions. Development of the most updated and complete tax library in the Philippines. TMAP shall contribute to updating and provisioning of the tax section of the Ateneo Law Library through donations of books and
materials needed in tax practice. Ateneo shall allow the members of TMAP access to the Tax Section of the Ateneo Law Library, subject to existing rules and regulations of the Ateneo Law Library or as may be agreed upon between the Parties. •
Joint undertaking of researches on law and tax reforms. TMAP shall sponsor or fund researches on law and tax reforms that will help improve the tax laws and policies, tax practice and tax administration in the Philippines. (Continued on page 2)
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Issue 7, July 2013
TMAP and Ateneo Law School Sign MOA (Continued) •
Establish an institutional presence of TMAP at the Ateneo and improve the awareness of the students of the existence and extent of tax practice in the Philippines.
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Development of a tax curriculum for post-graduate studies. TMAP shall assist Ateneo in the development of a tax curriculum for a taxation track in the Masters of Law program of the Ateneo.
The signatories for the MOA were Atty. Euney Marie J. Mata-Perez (President, TMAP) and Atty. Sedfrey Candelaria (Dean, Ateneo Law School), as witnessed by Atty. Florecita Flores (Adviser Emeritus, TMAP), and Atty. Benedict Tugonon (Chairperson of the Professional Development Committee, TMAP). The MOA with Ateneo is in line with TMAP’s objectives of promoting the development of tax management as a field of study, specialization and practice, and providing advisory and assistance on the conduct of tax studies and research. Ateneo de Manila Law School is a premier law school in the Philippines, a Catholic and Jesuit institution situated within the larger Ateneo de Manila University. Since its opening in 1936, its graduates are among the past and present legal and tax practitioners serving the country as individual practitioners, in-house counsels of various corporations, or as part of partnerships engaged in the practice of law and accountancy in the Philippines.
BIR Issues Reporting Guidelines on Filing of Protests On May 7, 2013, the BIR released Revenue Memorandum Circular (RMC) No. 39-2013, which set forth guidelines on the receipt of protest letters and similar correspondence and the preparation of weekly reports on all protests filed. Under the RMC, “all letters of protest, requests for reinvestigation/reconsideration and similar correspondences shall only be filed by the taxpayers or their duly authorized representatives, in person or through registered mail with return card, with the Office of the concerned Regional Director, Assistant Commissioner – Large Taxpayers Service and Assistant Commissioner – Enforcement Service who signed the Preliminary Assessment Notice, Final Assessment Notice and Formal Letters of Demand.” The RMC adds that the above-mentioned revenue officials shall be primarily responsible in ensuring the preparation of a complete/accurate report on all protest letters that were filed with their respective offices and the prompt submission thereof to the Commissioner of Internal Revenue every Monday of each week in hard and soft copies. The weekly report from different BIR offices will then be the basis for the preparation of a master database of all protest letters filed. As per the RMC, the objectives of the guidelines are to “avoid the conduct of re-investigation cases, to prevent undue accumulation of delinquent accounts, and to obviate premature collection enforcement actions against taxpayers. (Continued on page 4)
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Equities Outlook in June GMM To update its members on the outlook for the Philippine equities market, TMAP invited Mr. Philip Hagedorn, Investment Director for Equities of Maybank ATR KimEng Capital Partners Inc.-Trust, to be the guest speaker during the fifth general membership meeting on June 26, 2013. Mr. Hagedorn discussed recent trends of the Philippine macroeconomic indicators, particularly the performance of the Philippine Stock Exchange Index, which reached an alltime high of 7,403 in May but is now hovering at the 6,000plus level. The members learned that the recent drop in the index was not a reversal of the recent economic gains but a mere correction and impact of external factors. The market correction even provides a buying opportunity for long-term investors, as the sound macroeconomic fundamentals of the country will continue to support the financial markets. Mr. Hagedorn recommended investment in the infrastructure, consumption, resources and property sectors, focusing on companies with strong revenue/earnings performance and not on speculative stock price movements.
Issue 7, July 2013 The first session dealt with "Customs Audit- common issues and practical concerns" with Attys. Alex M. Gaticales and Agaton O. Uvero as panel members. "Taxpayers record-keeping systems are designed for BIR compliance and not for customs compliance. This is the reason why taxpayers encounter difficulty during a customs audit," Atty. Uvero explained. "Generally, the records are available but they are not accessible." he further emphasized.
The second session was entitled "Navigating through the recent local government tax issues from different LGUs" and the panelists were Attys. Florecita P. Flores and Leny C. Oxales. Atty. Oxales discussed the basic principles and some recent jurisprudence on local taxation. Atty. Flores shared her vast experience in local taxation and reminded the taxpayers that they should always refer to the law to address actions of the local government units which are beyond their taxation powers.
TMAP holds 2nd Quarter Tax Seminar More than a hundred TMAP members attended the Second Quarter Tax Seminar held on June 26, 2013 at the Mandarin Oriental Hotel. Abandoning the boring and monotonous lecture type seminars, this year's Quarterly Tax Seminar uses the interactive panel discussion mode for imparting tax developments to its members. The discussions were divided into three sessions.
The third session was on "Recent issues affecting sales or transfers of shares of stock". Ms. Miriam Aguila of the BIR discussed the BIR regulations affecting transfer of shares of stocks and TMAP President, Atty. Euney Mata-Perez discussed the concerns of the taxpayers. Atty. Perez highlighted issues relating to cost, timing, scope of the appraisal and difficulty to value some assets. She also highlighted that the new requirements impede transactions, discourage inflow of capital and increases the difficulty to get tax clearances. "We encourage the members to send us or inform us of any topic of interest that they want us to include in the quarterly tax seminars," Atty. Benedict Tugonon, Chairman of the TMAP Professional Development Committee, informed the attendees.
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Issue 7, July 2013
BIR Issues Reporting Guidelines on Filing of Protests (Continued) The filing and reporting guidelines were issued after it was observed that assessments that have become final and executory were still allowed to be referred to the concerned investigating office for reinvestigation. Some taxpayers, however, allege that they filed their protest letters with other offices of the BIR before the prescribed deadline but said letters failed to reach the concerned Regional Assessment Divisions before preparation of the Monthly Summary of Taxes Assessed – Unprotested. While the filing and reporting guidelines appear to be reasonable given the objectives stated in the RMC, taxpayers have expressed concern over a provision in the RMC stating that the failure of the concerned revenue officials to comply with the guidelines will render the protest “void and without force and effect.” The RMC further declares that an administrative 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 FAN or [Final Decision on Disputed Assessment] issued against the taxpayer.” Thus it appears that the failure of concerned revenue officials to include a taxpayer’s protest in BIR’s database, whether intentionally or by mere inadvertence, will result in the complete disregard of the administrative protest. A taxpayer’s failure to file a timely protest has severe repercussions. Under Section 228 of the National Internal Revenue Code of 1997, failure of the taxpayer to file a timely protest will render the assessment final and executory.
Happy birthday to the following TMAP members who are celebrating their respective birthdays in July! JULY 02 Fulvio Dawilan 03 Leonides Balmeo 05 Jocelyn Lajara-Lapira 06 Eranio Punsalan 10 Reynaldo Geronimo 11 Oscar Ventanilla 12 Redentor Caguioa 19 Remigio Iringan, Jr. 21 Shernan Balilo 21 Winnie Lardizabal-Morales 26 Christiane Alonzo 26 Joseph Deabanico 27 Louise Paula Ty 29 Mariano Celis II 30 Herminigildo Murakami
TMAP Publications Committee Leilah Yasmin E. Alpad Eleanor L. Roque Terence Conrad H. Bello
Contact us
The remedy given to taxpayers under Section 228 to dispute final assessments (administratively and judicially) can be negated by the simple expedient of excluding the protest letter in the BIR database. In such cases, taxpayer may be placed at the mercy of unscrupulous BIR officers.
Unit 1904, Cityland Herrera Tower Corner V. A. Rufino & Valero Streets Salcedo Village, Makati City
In the meantime, while the issues involving the RMC are unresolved, it may be prudent for taxpayers to ensure that protest letters and similar correspondence are filed with the correct BIR office and stamped received by the BIR clearly showing the date of filing.
Fax No. 753-1346
Tel. No. 845-1938 / 840-2325
Website: www.tmap.org.ph E-mail: tax_map@yahoo.com
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