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Have you been audited by the BIR and your claimed expense was disallowed for improper or inadequate substantiation? Have you applied for a tax refund, and were denied due to an erroneous invoice or receipt? This is not unusual given the state of our tax documentation and compliance. With the advent of the government requirement to use electronic receipts and invoices, we can only hope that these long-running challenges become a thing of the past.

On May 10, 2022, the SC released its decision promulgated on 01 December 2021 on the petition for certiorari of the Department of Finance (DOF) and Bureau of Internal Revenue (BIR) seeking for annulment of an order of the Regional Trial Court (RTC) Branch 57 in Makati City that declared Revenue Regulations No. 4-2011 null and void.

In previous years, we have seen an evolution of the Philippine tax landscape under different administrations. The National internal Revenue Code or the Tax Reform Act of 1997 superseded the 1977 Tax Code. Electronic filings have also been introduced, including the Electronic Filing and Payment System (eFPS), eBIRForms System, and electronic certificate authorizing registration (eCAR), among others. We currently have this thrust on streamlining the processes and requirements of the BIR’s registration processes and other taxpayer transactions with the BIR. There are also significant tax reform laws which have been passed -- the Tax Reform for Acceleration and Inclusion (TRAIN) Law and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, among others.

Yesterday’s elections was a defining moment for all Filipinos as the electorate cast their votes to elect the next leaders of the country. Sovereignty operated once more as people voted for and elected the government officials and representatives that embody their aspirations and dreams. As representatives of the people, the power and authority of elected officials emanate from the people. Thus, whenever an elected official goes beyond the authority delegated to him, he acts without legitimacy, and such authority may be withdrawn.

Today, digital transformation continues to generate a big fuss among policymakers, government agencies, and sectoral leaders due to its societal impact. As digitalization disrupts society ever more profoundly, concern is growing on how it affects issues such as jobs, wages, inequality, health, resource efficiency and security. Nevertheless, we are all aware that it has a positive effect, especially in this time of pandemic.

For the past two years during this pandemic, many of us have been working from the comfort of our homes, enjoying the benefits of the work-from-home (WFH) arrangement and avoiding traffic and reducing transportation costs. However, such will come to an end for those working with Registered Business Enterprises (RBEs) of the Information Technology – Business Process Management (IT-BPM) sector, as they started their return to office mandate last April 1, 2022.

The Tax Code provides that a penalty equivalent to 25% of the tax due shall be imposed due to the taxpayer’s failure to file a tax return and pay the tax due on time. On top of that, an interest of 12% per annum is also imposed as a penalty.

Last month, the Philippines adopted the Ten-Point Policy Agenda on Economic Recovery to accelerate and sustain economic recovery from the COVID-19 pandemic through Executive Order (E.O.) No. 166. Among the principles laid down by E.O. No. 166 is the resumption of economic and social activities, removal of age-based restrictions on mobility, and the further expansion of public transport capacity.