www.tmap.org.ph
February 2015 Issue
TMAP MONITOR TMAP Holds Press Briefing
TMAP recognizes the importance of media in reaching out and engaging the tax-paying public on the many tax issues that affect them. Media’s increasing influence in shaping public sentiment can drum up public support of TMAP’s position on tax regulations and its efforts to institute the necessary tax reforms. TMAP invited its media partners to a briefing on February 20, 2015 at Tower Club, Makati to formally introduce its 2015 officers and Board of Directors and to share its insights on the
Promoting Foreign Investments in the Philippines Among TMAP’s Speakers in the February General Membership Meeting was Director Angelica M. Cayas, Head of the Board of Investments’ International Investments Promotion Service (IIPS). Director Cayas expounded on the following services offered by the IIPS: (Continued on page 3)
latest tax developments. TMAP President Terence Bello discussed TMAP’s 2015 theme of “Promoting Tax Fairness to Enhance National Competitiveness” and the influence of fairness of a tax regime on taxpayer compliance and investment decisions. TMAP Officers and Directors also shared insights on the proposed reduction of income tax rates and impact on foreign direct investments, pressing concerns on the controversial Revenue Memorandum Circular 54-2014 which may result in a largescale denial of pending VAT claims, and the proposed rationalization of incentives. Members of the media who participated in the briefing included: Jen Ambanta (Manila Standard Today), Ben de Vera (Inquirer), Paul Rotero (GMA NEWS), Karen Lema (Reuters), Chino Leyco (Maa Bulletin), David Cagahastin (Business Mirror), Mikla Flores (Business World), and Joann Villanueva (Philippine News Agency).
TMAP’s First Kapihan in 2015
TMAP will consolidate the comments gathered in the discussions and formally submit them to the Senate.
Projects in Enhancing Electronic Filing of Returns and Reducing the Cost of Tax Compliance
TMAP members held their first Kapihan for 2015 on March 2, 2015 at the Makati Sports Club. TMAP Vice-President for Internal Affairs Atty. Benedict R. Tugonon presided and facilitated the discussion. Among the Senate Bills discussed are the ones filed by: 1. Senator Cynthia Villar (Senate Bill No. 35 – The Investments and Incentives Code of the Philippines) 2. Senator Ralph G. Recto (Senate Bill No. 987 – An Act Harmonizing the Grant and Administration of Fiscal and Non-Fiscal Incentives, and for Other Purposes) 3. Senator Loren Legarda (Senate Bill No. 2048 – An Act Rationalizing the Grant and Administration of Fiscal Incentives for the Promotion of Investments and Growth and for Other Purposes)
In TMAP’s February General Membership Meeting, Mr. Alexander Kitain presented projects with the Bureau of Internal Revenue (BIR) on enhancing the electronic filing and payment system (EFPS), and reducing the cost of tax compliance. Mr. Kitain is a Harvard trained public administration professional and the Deputy Chief, Facilitating Public Investment Project of the Development Alternative, Inc. (DAI). Mr. Kitain mentioned the need to develop tax reform strategies - tax administration reforms in the short-term and medium-term, and comprehensive tax reform in the long-term. DAI’s key counterparts are the Department of Finance, Bureau of Internal Revenue, Department of Budget and Management, Bureau of Customs and the civil society organizations including TMAP. During the discussion, TMAP members shared various issues (system and procedural problems) (continued on page 3) 2
Projects in Enhancing Electronic Filing of Returns and Reducing the Cost of Tax Compliance (continued) encountered in filing their tax returns and payment of taxes through the BIR’s Electronic Filing and Payment System. On the reduction of tax compliance cost, Mr. Kitain mentioned the following improvements that could be done: -
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Simplify tax treaty application and determine whether there is a need to file a Tax Treaty Relief Application (TTRA) Simplify and shorten tax returns/ forms Review and reduce significantly the frequency of tax return filings (e.g. for VAT, to file quarterly VAT returns only, instead of monthly returns) Establish a taxpayer advocacy function within the BIR (which advocates on behalf of taxpayers) Reorganize the appeal process (e.g. appeal to an independent body) Make filing deadlines more flexible (giving the BIR authority to extend deadlines in extraordinary circumstances) Simplify and speed up tax refunds
Promoting Foreign Investments in the Philippines (continued) 1. Due Diligence Assistance – the BOI-IIPS provides information support by conducting investment briefing and even assisting the investors in business matching 2. Facilitates Business Registration – the BOI-IIPS has its own Investment Ombudsman that can assist investors in securing business registration on time 3. After Care Service – the BOI-IIPS provides assistance to investors on issues relating to their operations, including tax concerns In attracting foreign investments, the BOI-IIPS conducts investment promotion activities specifically outbound missions (promoting the Philippines abroad) and inbound missions (business delegates visiting the Philippines). The game plan for competitiveness includes the review of the Foreign Investments Negative List, ensuring sustainable growth in 2015 and beyond, and policy reforms to improve the business environment (e.g. fiscal incentives rationalization, amendment to the Retail Trade Liberalization Act, full entry of foreign banks, Customs Modernization and Tariff Act). 3
President’s Report – January and February TMAP Activities
Happy birthday to the following TMAP members who are celebrating their respective birthdays in March!
During the February 2015 General Membership Meeting, TMAP President Terence Bello summarized TMAP’s January and February activities, as follows: 1. TMAP submitted to the House of Representatives its income tax reform proposal. TMAP President Bello announced that its income tax proposal was adopted by Bayan Muna through House Bill No. 5401 2. TMAP attended Senate Ways and Means Committee Focus Group Discussions on tax reform 3. TMAP attended House Ways and Means Committee hearings on various income tax reform measures 4. TMAP President Bello guested at the TV program Serbisyo All Access 9TV 5. TMAP attended the BIR National Tax Campaign Kick-Off (Revenue Region No. 8) 6. TMAP met with FEU Dean Celito Macachor and discussed FEU’s collaboration for the 2015 Lingkod TMAP project 7. TMAP presented its 2015 programs to the Press
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Constantino, Ferdinand A. Del Rosario, Ana Maria S. Jurado-Benedicto, Rosario Flores, Florecita P. Navarro-Cruz, Hannah Bunag, Jose Mario Cortes-Lopez, Gay Christine Lim, Maria Lourdes P. Hernando, Ma. Josefina S. Medalla, Rolando V. Jr. Mijares, Martin Ignacio D. Abela, Walter Jr. L. Zialcita-Villapando, Madeline L. Monsod-Tormon, Menchie Sy, Shennan A. Banta, Jeri Alanz A. Cruz, Mary Evangeline A. Sebastian, Guillermo V.
Contact us Unit 1904, Cityland Herrera Tower Corner V. A. Rufino & Valero Streets Salcedo Village, Makati City Tel. No. 840-2325 Fax No. 346-8104 Website: www.tmap.org.ph E-mail: tax_map@yahoo.com
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