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The Philippines’ tax system is mostly driven by supporting documents. The deductibility of allowable expenses and claiming of input value-added tax (VAT) rely heavily on valid official receipts and sales invoices. Hence, it is paramount for every business to ensure that the documents they issue are free from errors.
Non-profit organizations play a vital role in building healthy communities by providing critical services that contribute to economic stability and mobility. They serve as additional help aside from the programs and funds from the government. They may be considered the heart of the community. They work across multiple sectors to meet the vital needs and enhance the quality of life of the community. They have the unique ability to serve as a bridge in the community by leveraging resources and expertise to build collaborations between private and public entities, professionals, and volunteers to work together towards the common good.
Transfer Pricing (TP) compliance is still a relatively new idea for most of the taxpayers in the Philippines even though the Bureau of Internal Revenue (BIR) has issued the TP regulations in 2013 followed by series of issuances in 2019 until 2021.
At the onset of the pandemic, a plunge was seen in the number of enrollees especially in academic year 2020-2021, mainly due to pandemic-driven economic and social factors and a hesitancy to transition to the alternative modes of learning. Admittedly, private schools took a hit as students transferred to the public-school systems or stopped school altogether. Hopefully, academic year 2022-2023 could pose an increase in enrollees, though initial numbers from the Department of Education (DepEd) prove to be optimistic.
As taxpayers may know, all field audit and other field operations of the Bureau of Internal Revenue (BIR) covered by Letters of Authority relative to the examinations and verifications of taxpayers’ books of account, records, and other transactions have been ordered suspended until further notice, except for cases prescribing on or before October 31, 2022, and for other situations described in BIR Revenue Memorandum Circular (RMC) 77-2022. The suspension has remained up to the time of this writing. However, as per the RMC, the service of assessment notices, warrants, and seizure notices should still be effected.
Last week, I received a common inquiry from several clients – “Has the suspension of the tax audit been lifted?”. The reason is that these clients received assessment notices from the Bureau of Internal Revenue (BIR) such as the Notice of Discrepancy (NOD) and Preliminary Assessment Notice (PAN) that were personally served at their respective offices unexpectedly.
According to the National Mapping and Resource Information Authority (NAMRIA), the Philippines is made up of 7,641 islands contributing to the country’s vast natural resources. Despite the abundance of these resources, the country is still at the early stage of capitalizing on the use of these natural assets to produce renewable and sustainable energy. The limitation is caused mainly by the lack of investment due to the high cost of developing, producing, and sustaining renewable energy.
With the continuing improvements on information and technology, it is becoming easier and easier for taxpayers to transact business on a global scale. While this situation provides a number of opportunities to taxpayers, tax issues on tax administration appear to be an inevitable consequence of such. One of the main issues is the risk on possible shifting of revenues to a lower-taxing country.
