VAT audit program for TY 2015 onwards
Under the VAT audit program of the BIR for 2015 and thereafter, taxpayers will be selected based on two sets of criteria. Taxpayers that will be subject to the regular VAT audit will be selected based on the criteria under RMO 20-2012.
Limited audit for tax refunds
In this RMO, the BIR clarified that companies which have filed applications for tax refund/TCC shall still be subject to mandatory audit regardless of tax type. However, the Letter of Authority that will be issued shall cover only the specific tax type which is the subject of the application for refund/TCC.
Suspension of all audit activities now fully lifted
This Tax Alert is issued to inform all concerned that the suspension of all audit activities pursuant to RMC 70-2016 is now lifted. All field audits, filed operations, or any form of business visitation in execution of LOAs/eLAs/Audit notices, LNs, or Mission Orders can already be conducted starting today, September 1, 2016. This is to ensure that collection of correct taxes at the times prescribed by law are enforced by the bureau.
eFPS inaccessible from August 26 at 5:00 PM to August 30 at 6:00 AM
This Tax Alert is issued to inform all concerned on the alternative mode in filing all tax returns through eFPS from August 26 5:00 PM to August 30 6:00 AM. A scheduled maintenance will be conducted starting today, August 26 at 5:00 PM to August 30 at 6:00 AM. In line with this, taxpayers are advised to use the eBIRForms facility in efiling tax returns and pay either electronically (debit notes) or over-the-counter (cash or checks)
BIR resumes audit activities on RATE cases
This Tax Alert is issued to inform all concerned that suspension of BIR audit activities pursuant to RMC 70-2016 is now partially lifted. In line of this RMC, all field audits, operations, visitations pursuant to audit notices in the implementation of LOAs pertaining to Run After Tax Evader (RATE) cases shall be resumed in accordance with existing BIR rules and regulations This is taken to encourage voluntary compliance with internal revenue tax laws and to allow BIR to continuously investigate criminal violations of the tax code.
Proposal to impose filing fees on motions for reconsideration
The BIR has posted in its website an advisory requesting for comments on the following proposal. Proposal: 1. Imposition of a filing fee upon filing of a Motion for Reconsideration (MR) to the Commissioner on a full or partial denial of the protest to a FAN/FLD (final decision on disputed assessment or FDDA). Existing regulations on handling BIR assessments provide that If the protest to the FAN is denied, in whole or in part, by the Commissioner’s duly authorized representative, the taxpayer may either: (i) appeal to the Court of Tax Appeals (CTA) within thirty (30) days from date of receipt of the said decision; or (ii) elevate his protest through request for reconsideration to the Commissioner within thirty (30) days from date of receipt of the said decision. 2. Rate: 1/10 of 1% of the basic tax assessed subject of the MR 3. The MR shall not be given due course unless the filing fee is paid. 4. Legal basis: Administrative Order No. 31 (Oct 1, 2012) as implemented by DOF-DBM-NEDA joint Circular No. 1-2013 (Jan 30, 2013) which directs and authorizes heads of bureaus to rationalize their rates of fees and charges, increase their rates, and impose new fees and charges. The filing fee shall be part of an RMO that will be issued prescribing the rules in handling administrative appeals on disputed assessments.
Guidelines in establishing PERA
This Tax Alert is issued to inform all concerned on the guidelines and procedures in establishing Personal Equity and Retirement Account (PERA). Accreditation of PERA Administrators 1. The Audit Information, Tax Exemption and Incentives Division (AITEID) shall be the BIR’s PERA processing office. Applications for accreditation (BIR Form 1941) shall be accepted only PERA administrators who were issued a “Qualification Certificate” issued by the concerned Regulatory Authority (BSP, SEC or IC). 2. Certificate of Accreditation (BIR Form 2336) shall be issued to the PERA Administrator, and a copy to the RDO/LTS having jurisdiction over the PERA administrator, for monitoring and to ensure maintenance of a separate books of accounts for PERA contributions and related transactions. 3. Accreditation shall be valid until suspended or revoked for violations or non-compliance.
Issuance of tax exemption rulings to NSNP educational institutions
This Tax Alert is issued to put in proper context the nature and tax status of non-stock, non-profit educational institutions pursuant to the Constitutional provisions. The Philippine Constitution provides that all revenues and assets of NSNP educational institutions used actually, directly and exclusively for educational purposes shall be exempt from taxes and duties. This is further reiterated in Section 30 of the NIRC. There are only two requisites: (a) the school is non-stock and non-profit; and (b) the income is actually, directly and exclusively used for educational purposes
BIR lifts suspension of some June 2016 issuances
This Tax Alert is issued to inform all concerned that suspension of some revenue issuances as promulgated under Section 69-2016 is now partially lifted. The following issuances, among others, are now in effect: Issuance Number Title/Description of issuance REVENUE MEMORANDUM ORDERS (RMO) RMO No. 22-2016 Prescribing the policies and procedures for the Issuance of electronic Certificate Authorizing Registration (eCAR) http://www.grantthornton.com.ph/newsroom/technical-alerts/tax-alert/2016/Certificate-of-authorizing-registration-be-issued-only-through-electronic-system/ RMO No. 28- 2016 Authorizing the policies, guidelines and procedures in implementing the Memorandum of Understanding between the Home Development Mutual Funds and the BIR in electronic filing of tax returns thru eBIR Forms and issuance of eCAR RMO No. 30- 2016 Prescribing guidelines, policies and procedures for replacement of spoiled/bad order and factory defected internal revenue stamps under the Internal Revenue Stamps Integrated System (IRSIS) RMO No. 31- 2016 Amends RMO No. 13-2014 particularly on the public auction sale of absolutely forfeited and seized properties RMO No. 32- 2016 Further clarifying and amending certain policies, guidelines and procedures in the issuance of importer/broker clearance certificates relative to the accreditation as importer/customs broker RMO No. 33- 2016 Prescribing uniform procedures for the implementation of Internal Revenue Stamp Integrated System (IRSIS) RMO No. 34- 2016 Amending the prescribed format for the Notice of Denial that shall be prepared by concerned Regional Offices relative to Applications for Compromise Settlement and/or Abatement of Penalties
Clarifications on issues regarding RMC 70-2016
This Tax Alert is issued to clarify certain issued regarding RMC 7-2016 providing that all field audit and other operations of the BIR are suspended until further notice. The following are NOT SUSPENDED. 1. Audit of cases where there are deadlines imposed by law, such as processing of claims for refund. 2. Service of Assessment Notices (PAN, FAN, FLD, FDDA) for TY 2013 and prior years and Assessment Notices that have been signed as of June 30, 2016. 3. Processing of complaints by taxpayers/informers, which should be done under the "No contact with taxpayer" policy. 4. Sending of notices/reminders/follow-ups to stop-filer cases. 5. Issuance of collections letters, notice of seizure/levy for enforcement of collection of delinquent accounts. 6. Sending of letters to third parties (e. LRA, LTO, RD, Local Assessment office) for verification of property holdings of delinquent taxpayers. 7. Field audit and examinations for cases prescribing on or before Oct 31, 2016: • LOA covering all taxes for TY 2013 and prior years • LOA covering specific tax types prescribing on or before oct 31, prescriptive period reckoned depending on the tax types The following are SUSPENDED: 1. Implementation of Mission Orders issued prior to July 1, 2016