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THE global economy has had its fair share of a rollercoaster ride last year. The onset of the coronavirus disease 2019 (Covid-19) pandemic was swift and in a short span of time, economic projections took a turn for the worse. The effects of the Covid-19 pandemic left companies spinning in a downward spiral in an instant, all looking at a fast solution to keep operations up and running amid the imposition of health protocols and the necessity of employing remote transactions. The unforeseen impacts of the outbreak tested the resiliency of firms and their ability to adapt to changing situations.

Is your tax department acting as your active internal business partner? Or is it the usual compliance and transaction-based unit that most large corporations in the Philippines have?

IT IS the policy of the Philippine government to pursue a program of poverty eradication so that poor Filipino families shall be encouraged to undertake entrepreneurial activities to meet their minimum basic needs. In pursuing entrepreneurial activities, financing is needed to start, sustain and grow the business.

It is usual in the Philippines that the same tax law provision has been interpreted and implemented differently by different Commissioners of Internal Revenue (CIR). This is the case of the value-added tax (VAT) claim processing. Section 112 of the Tax Code provides that a taxpayer claiming excess input VAT for refund or tax credit must file the claim with the Bureau of Internal Revenue (BIR) within two years of the close of the taxable quarter during which the sales were made. In case of full or partial denial of the claim or failure of the BIR to act on it within a period of 120 days from receipt of the claim, a taxpayer may elevate its claim to the Court of Tax Appeals (CTA) within 30 days from receipt of the decision or upon expiration of the 120-day period.

The Department of Trade and Industry (DTI) and Go Negosyo, the advocacy arm of the Philippine Center for Entrepreneurship (PCE), in partnership with local chambers of commerce, have launched a laudable project to empower Micro and Small Enterprises (MSEs) by encouraging entrepreneurship in the country. Called the “Mentor Me Program,” it aims to help MSEs improve their entrepreneurship fundamentals to scale up and sustain their businesses by providing them with the needed skill sets by way of conceptual discussions and mentoring sessions.

It is a common practice among Filipinos to consult a doctor or go to the hospital only when the disease has reached a serious stage. This sometimes puts the patient at risk of being diagnosed only when the illness already requires intensive care, or worse, when it is too late to save the patient’s life.

In August 2015, the Cebu Chamber of Commerce and Industry (CCCI) together with the Financial Executives Institute of Cebu, Inc. (FINEX Cebu), the Confederation of Philippine Exporters Foundation (Cebu), Inc. (PHILEXPORT Cebu), and the Philippine Institute of Certified Public Accountants -- Cebu Chapter (PICPA -- Cebu) submitted a position paper to the Department of Finance (DoF) requesting amendments to the Bureau of Internal Revenue Importer Clearance Certificate (BIR-ICC) and BIR Customs Broker Clearance Certificate (BIR-BCC) requirements in relation to the accreditation of the importer and customs broker, respectively. To date, the petitioners have not received feedback from the DoF. Hence, I reprint below the significant parts of the position paper.