www.tmap.org.ph
Issue 5, May 2013
TMAP MONITOR TMAP Promotes Financial Literacy
Optimism is currently the prevailing sentiment on the Philippine economy. The Philippines has secured investment-grade credit rating from international rating agencies such as Fitch Ratings and Standard & Poor's. It has surpassed growth expectations despite the worldwide economic slowdown. The current domestic liquidity and continuing earnings growth contribute to a favourable investment environment for the working Filipino. The key in making good investment decisions is financial literacy. With this in mind, TMAP’s
general membership meeting for April 2013 focused on “Purpose-driven investments and tax implications”, with the tandem of Mr. Limuel Manuel from the Good Steward Financial Consulting and Ms. Rina Manuel, External Vice President of TMAP, as resource speakers. From the forum, members learned that investing should be aligned with an individual’s purpose, which may differ depending on his/her stage in life. Continued on page 3
BIR Releases New Guidelines for Determining Fair Market Value of Unlisted Shares for Tax Purposes The Bureau of Internal Revenue recently released Revenue Regulations No. (Rev. Regs.) 6-2013 dated April 11, 2013, which amended the definition of the fair market value (FMV) of unlisted shares as provided in Rev. Regs. 6-2008. Rev. Regs. 6-2013 was published on April 24, 2013.
Rev. Regs. 6-2008, as amended by Rev. Regs. 6-2013, now provides that in the case of shares of stock not listed and traded in the local stock exchanges, the value of the shares Continued on page 6
www.tmap.org.ph
Issue 5, May 2013
Highlights of the April GMM
Opening prayer led by TMAP Member Ms. Ana Maria Del Rosario of First Philippine Industrial Corp.
TMAP Members sing the National Anthem
Atty. Raymund Gallardo, VP for Internal Affairs delivered the Opening Remarks
Guest speaker Mr. Limuel Manuel discusses with co-speaker EVP Rina Manuel
Atty.Benedict Tugonon, TMAP Auditor and Director delivered the Closing Remarks
New Members Atty. Gay Christine CortesLopez and Atty. Enrique V. dela Cruz
2
www.tmap.org.ph
TMAP promotes Resources may be allocated for any of the following: emergency fund, debt, investment and protection. Before deciding on where to allocate resources, an individual must start from aspirations, which should be broken down into specific plans and objectives with a defined time horizon. The type of investment will depend on the time frame for objectives. For short-term objectives, treasury bills and money market instruments which are focused more on liquidity than returns are recommended. For medium to long-term
New TMAP Members Inducted Last April 2013 GMM
Issue 5, May 2013 objectives, bonds and equities may provide the desired returns. The decision on the type of investment depends on an individual’s risk profile; the key is in maintaining a diversified portfolio to even out the risks. Of course, for every income, there is a corresponding tax. Members were also reoriented on the tax rates that apply for the different financial instruments, to give them a glimpse of the real returns of the various investment products available and to assist them on financial planning.
the Senior Deputy Commissioner and Commissioner of the Bureau of Internal revenue. She also worked as Supervisor of Tax and Corporate Services of KPMG Manabat Sanagustin & Co as well as Labor Relations Officer at the HongKong & Shanghai Banking Corp. She was also an Associate Auditor of SGV from 1999 to 2002. Atty. Enrique V. dela Cruz is a Partner and Member of the Management Committee of Ponce Enrile Reyes & Manalastas Law Offices. He graduated from UST with a degree in Bachelor of Arts in Legal Management and Bachelor of Laws.
Atty. Gay Christine Cortes-Lopez is a Senior Associate of Buñag and Lotilla Law Offices. She will replace Atty. Jojo Buñag as official representative of the law office to TMAP. She’s a CPA Lawyer. She graduated from the University of San Carlos with a degree in Bachelor of Science in Accountancy and from the Ateneo de Davao University where she finished her law degree. Before joining Buñag and Lotilla in 2011, she has worked as Technical Asst. at the Office of
In 2005, he obtained his LLM degree major in International & Comparative Business Law (with Distinction) from the London Metropolitan University, and a single Masters Course in International Trade Law from the University College of London as a Chevening Scholar of the British Council. He also obtained a Masters in Public Management degree from the Ateneo School of Government. In 2002, he completed a postgraduate Fellowship in Public Policy from the John F. Kennedy School of Government, Harvard University.
3
www.tmap.org.ph
Issue 5, May 2013
Work Around Procedures for Online ATPs
to January 19, 2013 and those printed by printers which are not compliant with the RMO shall be valid until June 30, 2013.
The BIR has recently issued RMO 12-2013 prescribing the work-around guidelines and procedures in the processing of Authority to Print (ATP) in relation to Revenue Regulations No. 18-2012 on the on-line ATP system.
Taxpayers are required to submit on or before July 10, 2013 inventory listing/s of unused/expired receipts and surrender the same for destruction to the RDO where it is registered.
The RMO also provided sample formats of principal and supplementary receipts/invoices bearing the required basic information.
All new set/s of principal and supplementary receipts/invoices to be printed which are compliant with the requirements set forth under this Order shall have a validity period of five (5) years. All unused/expired/expiring ORs/SIs/CIs shall be surrendered for destruction on or before the 10th day after the validity period of the expired receipts/invoices.
It emphasized that the application for ATP shall be filed at the RDO/LT Office concerned where the Head Office is registered. All unused/unissued principal and supplementary receipts/invoices printed prior
29
May 02 06 08 09 13 14 15 26 26
DE LEON, Hector Jr. M. ORTEGA, Manuel L. LOJA, Magilyn T. CELICIOIUS-SY, Suzette A. BAUTISTA, Mariejo P. VILLACAMPA, Samuel F. CAGANDA, Antero Jose M. LANDRITO, Cristopher B. MANUEL, Rina Lorena
CARREON, Ronald
June 01 DIONISIO, Amelia E. 01 SARMIENTO, Marivic D. 04 BELLO, Terence Conrad H. 05 CRUZ, Noriel 05 GARCIA, Maria Paz A. 05 TEJADA, Benilda A. 09 LAPRES, Richard R. 12 NORA-MANALO, Maria Nora 12 ALCAZAR, Richard Anthony D. 16 TAN-CANONIGO, Janice Jade V. 19 DELA CRUZ, Enrique Jr. V. 19 OXALES, Agnes Le. Casabar 24 CARPIO, Ariel 24 MARCELO, Reynante M. 25 GERODIAS, Raul G. 26 ADVINCULA, Angelo Patrick F.
4
www.tmap.org.ph
TMAP Bingo Socials On May 25, 2013, TMAP members, their families and friends will again have a fun-filled day on the occasion of the 2013 TMAP Bingo Socials. The event will be held at the Zobel Dining Room, Makati Sports Club, L.P. Leviste cor. Gallardo Sts., Salcedo Village, Makati City. This once-a-year event, which started during the term of President Cris Guhit in 2009, allows TMAP members to kick back, relax and have fun while vying for the chance to win major prizes and lots of consolation prizes to be given away by TMAP.
TMAP 6th Golf Tournament
To raise funds and to sustain TMAP’s various projects, TMAP will hold its 6th TMAP Golf Cup on July 26, 2013 at the Ayala Greenfield Golf and Leisure Club. The tournament will give TMAP members and their friends from both the public and privates sectors the opportunity to enjoy a friendly round of golf while raising the necessary funds to support several good causes. Tournament registration opens at 6:30 A.M. and kicks off with a shotgun start at 8:00 A.M. In this regard, TMAP extends an invitation to members
Issue 5, May 2013
Bingo cards are available at P60.00 per card for the minor games from Games 1 to 6, and P110.00 per card for the major prizes from Games 7 to 10. Cash prizes at stake are as follows: • • • • •
Game 1: P1,000.00 Games 2 to 3: P2,000.00 per game Games 4 to 6: P3,000.00 per game Games 7 to 9: P3,500.00 per game Blackout: P15,000.00
Come one, come all and let’s have fun!
and friends to support the organization’s projects by attending and sponsoring the golf tournament. The following are the sponsorship packages and their benefits: Gold (P100,000), two Company banners displayed prominently at the venue, Company banner displayed at the 1st or 9th hole, and one four-player team; Silver (P50,000), Company banner displayed prominently at the venue, sole sponsorship of one hole (except 1st and 9th), and three tickets; and Bronze (P20,000), Company banner displayed prominently at the venue, joint sponsorship of one hole (except 1st and 9th), and one ticket. TMAP encourages its members and friends to attend the golf tournament. See you on July 26!
Join our Facebook page Tax Management Association of the Philippines (TMAP).
5
www.tmap.org.ph
Issue 5, May 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.
BIR Releases New of stock at the time of sale shall be their fair market value. In determining the value of the shares, the Adjusted Net Asset Method shall be used whereby all assets and liabilities are adjusted to fair market values. The net of adjusted asset minus the liability values is the indicated value of the equity. For this purpose, the appraised value of real property at the time of sale shall be the highest of: (1) The fair market value as determined by the Commissioner; or (2) The fair market value as shown in the schedule of valued fixed by the Provincial and City Assessors; or (3) The fair market value as determined by Independent Appraiser. There have been a number of issues raised in relation to the amended definition of FMV of
unlisted shares, which include, among others, the practicality of requiring an appraiser’s report every time unlisted shares are sold, whether the BIR can legally require an appraiser’s report given that Sec. 6(E) of the Tax Code prescribes only zonal value and FMV per tax declaration in determining the tax base for sales of realty, and the perceived vagueness of the amendatory regulations. Until the BIR clarifies the foregoing issues, taxpayers would be second guessing how the BIR intends to implement the new regulations.
Publications Committee: Leilah Yasmin E. Alpad Terence Conrad H. Bello Eleanor L. Roque 6