TAXMAN EYES BLOGGERS YOUTUBERS + DOLE URGED TO PROBE ALLEGED NON-PAYMENT OF CALL CENTER AGENTS SALARIES DURING COVID-19 CRISIS + FIRMS NOW PREFER HIRING PEOPLE WITH WORK-FROM-HOME SET-UPS: JOBSTREET
Other Relevant Tax Updates:
- Supreme Court (SC) Case Digest
- Court Of Tax Appeals (CTA) Case Digests
- Bureau Of Internal Revenue (BIR) further extends deadline for tax amnesty
- BIR circularizes the list of prescription drugs and medicines for diabetes, high-cholesterol and hypertension exempt from VAT beginning January 27, 2020
- BIR Circularizes Extension Of Deadline On Availment Of Tax Amnesty On Delinquencies
- Tax And Business-Related News [June 20-26]
I. SC CASE DIGEST
[SC MAY REMAND THE CASE TO CTA FOR FURTHER TRIAL IF BOTH PARTIES RAISED PROCEDURAL LAPSES] [SC WARRANTS RELAXATION OF PROCEDURAL RULES IF STRICT ADHERENCE THERETO WOULD ONLY FRUSTRATE RATHER THAN PROMOTE JUSTICE]
Kabalikat Para Sa Maunlad Na Buhay, Inc., a non-profit civic organization, and the CIR filed a Consolidated Petitions assailing the CTA En Banc’s Resolution which relied on Section 7, Rule 43 of the Rules of Court and dismissed both petitions outright for being procedurally defective. In ruling, the Court ruled that it is not novel for courts to brush aside technicalities in the interest of substantial justice. The Court recounted the long jurisprudence supporting consistently the relaxation of procedural rules if strict adherence thereto would only frustrate rather than promote justice. To warrant relaxation of the rules, the erring party must: (a) show reasonable cause justifying its noncompliance with the rules; (b) convince the Court that the outright dismissal of the Petition would defeat the administration of substantive justice; and (c) offer proof of at least a reasonable attempt at compliance therewith. The desired leniency cannot be accorded absent valid and compelling reasons for such a procedural lapse. The Court finds that the CTA En Banc erred when it refused to consider the sufficient rectification of the parties’ respective mistakes. The circumstances in the present case warrant the relaxation of procedural rules. Thus, the Consolidated Petitions are GRANTED. The case is REMANDED to the CTA En Banc for resolution on the merits of the case. [KABALIKAT PARA SA MAUNLAD NA BUHAY, INC. VS. COMMISSIONER OF INTERNAL REVENUE, GR NOS. 217530-31 AND 217536-37; COMMISSIONER OF INTERNAL REVENUE VS. KABALIKAT PARA SA MAUNLAD NA BUHAY, INC., GR NO. 217802, FEBRUARY 10, 2020]
II. CTA CASE DIGESTS
- Assessment notices must include specific date to settle; otherwise, the assessment is void;
- Prosecution failed to show proof of receipt resulting in acquittaland release of bond; prosecution must establish willful failure of the taxpayer to pay required tax to sustain conviction of offense;
- Receipt of registered letters and return receiptsdo not prove themselves that they are actually received by taxpayer;
- Three (3)-year prescriptive periodpertains to issuance of tax assessment and not to issuance of LOA;
- Absence of Letter of Authority (LOA)authorizing Revenue Officer (RO) to conduct tax audit will render the assessment void; compromise implies agreement, thus, one party cannot impose it upon the other;
- Assessment was cancelled due to absence of LOA, absence of facts and legal bases of assessment, and definite period to settle; taxpayer shall be informed in writing of the law and the factson which the assessment is made;
- Absence of LOAis a violation of the taxpayer’s right to due process;
- Refund of erroneously withheld Final Withholding Tax (FWT) on repair services rendered under RP-Japan tax treaty;withholding agent has a legal right to file a claim for refund provided it has the obligation to remit the same to the principal taxpayer;
- Requiring proof beyond reasonable doubtfinds basis not only in the due process of the constitution; right of the accused to be “presumed innocent until the contrary is proved”; failure to establish sufficient proof by plaintiff leads to acquittal of the accused
- Refund of input vat denied for failure to account zero-rated sales with inward remittance
- Bank-certified credit memo must be submitted to prove inward remittance of foreign currency for export sales;sales to Board of Investments (BOI)-registered enterprises were disallowed for vat zero rating because all BOI certificates show that the validity period do not cover subject sales
- Three (3)-year prescriptive perioddoes not apply to issuance of LOA but to issuance of tax assessment; 3-year prescriptive period shall be suspended when the taxpayer requests reinvestigationand the BIR grants the request; burden of proof that taxpayer’s request for reinvestigation had been actually granted rests upon the BIR
- Waivermust indicate the nature and amount of the tax due; formal assessment notice (fan) cannot be deemed as a valid assessment in the absence of a specific date to settle
ASSESSMENT NOTICES MUST INCLUDE SPECIFIC DATE TO SETTLE; OTHERWISE, THE ASSESSMENT IS VOID
Petitioner Clark Water Corporation filed a Petition for Review seeking cancellation of the assessment issued by the Respondent Commissioner of Internal Revenue (CIR). Respondent argued that income generated by Petitioner from its sales in customs territory must be subjected to VAT. On the other hand, Petitioner countered that it enjoys the preferential tax rate of 5% on its gross income, in lieu of all national and local taxes, and it did not breach the 30% statutory threshold since revenue from enterprises located outside of Clark Special Economic Zone territory constituted only 8.86% of Petitioner’s total revenue. In ruling, the Court did not touch upon the substantive aspect of the assessment but instead focused on the defective assessment notice for it failed to indicate the specific date to settle the assessment and the categorical statement on the demand to pay. Citing the Supreme Court case in Commissioner of Internal Revenue vs. Fitness By Design, disputed Final Assessment Notice was not a valid assessment because it did “not purport to be a demand for payment of tax due, which a final assessment notice should supposedly be. Thus, failure of the Respondent to indicate the definite date to settle renders the assessment void. Consequently, the Petition was GRANTED resulting in the CANCELLATION of the assessment. [CLARK WATER CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 9519, JUNE 20, 2020]
[PROSECUTION FAILED TO SHOW PROOF OF RECEIPT RESULTING IN ACQUITTAL AND RELEASE OF BOND] [PROSECUTION MUST ESTABLISH WILLFUL FAILURE OF THE TAXPAYER TO PAY REQUIRED TAX TO SUSTAIN CONVICTION OF OFFENSE]
The Prosecution filed a criminal case against Accused Robigie Corporation and Grace G. Sucksuphan for violation of Section 255, in relation to Section 256 of the 1997 Tax Code, for their alleged refusal and failure to pay deficiency internal revenue tax liabilities. In ruling, the Court ruled that assuming arguendo that the Court has jurisdiction to take cognizance of the case and that the Accused had been subjected to arraignment, the evidence presented by the Prosecution failed to prove the guilt of the Accused beyond reasonable doubt. To sustain a conviction for the offense of “Failure to Pay Tax” under the Tax Code, one of the elements is that the Prosecution must be able to establish beyond reasonable doubt that the taxpayer’s failure to pay the required tax is willful. With the glaring failure of the Prosecution to prove that Accused received the assessment notices, the Court finds that Accused’s refusal to pay the assessed deficiency taxes was justified. Stated differently, the failure of the Accused to pay the assessed internal revenue tax liabilities was not willful. Thus, the case was DISMISSED and the Accused were ACQUITTED of the offense charged. [PEOPLE OF THE PHILIPPINES VS. ROBIGIE CORPORATION AND GRACE G. SUCKSUPHAN, CTA CRIMINAL CASE NO. 0-639, JUNE 17, 2020]
RECEIPT OF REGISTERED LETTERS AND RETURN RECEIPTS DO NOT PROVE THEMSELVES THAT THEY ARE ACTUALLY RECEIVED BY TAXPAYER
Petitioner Ruben U. Yu filed a Petition for Review seeking cancellation of the assessment issued by the Respondent CIR. Petitioner maintained that he did not receive the Preliminary Assessment Notice (PAN) and that the signature indicated in the registry return receipt was not his. In ruling, the Court resolved that in case the taxpayer denies receipt of the assessment notices from the BIR, the latter has the burden to prove, by competent evidence, that the required notices were actually received by the taxpayer. In this case, the Respondent failed to prove actual receipt and it was the server who signed the Petitioner’s name on the registry return receipt. Thus, the Petition was GRANTED and the assessment was CANCELLED. [RUBEN U. YU VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 9595, JUNE 15, 2020]
THREE (3)-YEAR PRESCRIPTIVE PERIOD PERTAINS TO ISSUANCE OF TAX ASSESSMENT AND NOT TO ISSUANCE OF LOA
Petitioner Hemisphere-Leo Burnett, Inc. filed a Petition for Prohibition and Injunction with Prayer for the Issuance of Temporary Restraining Order and Writ of Preliminary Injunction seeking cancellation of the LOA issued by the Respondent CIR in 2017 covering the taxable year 2012. Petitioner argued that Respondents’ right to assess and collect taxes had already prescribed as of the date of the issuance of the subject LOA, since it was issued beyond the 3-year prescriptive period to make assessment under Section 203 of the 1997 Tax Code. In ruling, the Court discussed that what is being governed in the provisions of the Tax Code is the issuance of tax assessment and not the issuance of LOA. The Court distinguished a tax assessment from an LOA. Assessment is a written notice and demand made by the BIR on the taxpayer for the settlement of tax liability due that is definitely set and fixed. LOA gives notice to the taxpayer that it is under investigation for possible deficiency tax assessment; at the same time, it authorizes a designated RO to examine a taxpayer’s books and records. Cursory examination of the Tax Code would reveal that there is indeed no prescriptive period for the issuance of an LOA, unlike in the issuance of a tax assessment. Since the subject LOA is valid, the Petition was DENIED. [HEMISPHERE-LEO BURNETT, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CAESAR R. DULAY, OIC ASSISTANT COMMISSIONER OF LARGE TAXPAYERS SERVICE, THERESITA M. ANGELES, AND THE BUREAU OF INTERNAL REVENUE, CTA CASE NO. 9749, JUNE 3, 2020]
[ABSENCE OF LOA AUTHORIZING RO TO CONDUCT TAX AUDIT WILL RENDER THE ASSESSMENT VOID] [COMPROMISE IMPLIES AGREEMENT, THUS, ONE PARTY CANNOT IMPOSE IT UPON THE OTHER]
Petitioner Global Energy Supply Corporation filed a Petition for Review seeking cancellation of the assessment issued by the Respondent CIR. Petitioner argued that the assessment is void due to the absence of LOA authorizing RO to conduct examination. In ruling, the Court resolved that since no new LOA was issued for the RO’s authority and reassignment, and only a Memorandum of Assignment was issued pursuant to evidence presented, subject assessment is void. In addition, compromise penalty should not be imposed against Petitioner considering that a compromise implies agreement. One party cannot impose it upon the other since by its nature, compromise is consensual. Thus, the Petition was GRANTED. [GLOBAL ENERGY SUPPLY CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE No. 9673, JUNE 11, 2020]
[ASSESSMENT WAS CANCELLED DUE TO ABSENCE OF LOA, ABSENCE OF FACTS AND LEGAL BASES OF ASSESSMENT, AND DEFINITE PERIOD TO SETTLE] [TAXPAYER SHALL BE INFORMED IN WRITING OF THE LAW AND THE FACTS ON WHICH THE ASSESSMENT IS MADE]
Petitioner JED Marketing, Corporation filed a Petition for Review seeking cancellation of the assessment issued by the Respondent CIR. Petitioner argued that Respondent failed to provide a validly issued LOA, no factual basis of the alleged deficiency assessment, and the period to collect has already lapsed. In ruling, the Court resolved that the absence of LOA to conduct the audit renders the present assessment void. There must be a grant of authority before any RO can conduct an examination or assessment. In the present case, there is no showing that an LOA was issued, thus, the assessment is inescapably void. Taxpayer shall be informed in writing of the law and the facts on which the assessment is made; otherwise, the assessment shall be void. Moreover, to be valid, a tax assessment must not only contain a computation of tax liabilities, it must also include a demand upon the taxpayer for the settlement of a tax liability that is definitely set and fixed. Consequently, the Petition was GRANTED resulting in the CANCELLATION of the assessment. [JED MARKETING, CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 9687, JUNE 10, 2020]
ABSENCE OF LOA IS A VIOLATION OF THE TAXPAYER’S RIGHT TO DUE PROCESS
Plaintiff Republic of the Philippines filed a Complaint praying that Defendant Robiegie Corporation, a company engaged in the business of operating a drugstore, be ordered to pay the amount of deficiency taxes plus the 20% deficiency and delinquent interests per annum in accordance with Section 249 of the 1997 Tax Code. Defendant argued that: (1) the LOA was an invalid LOA, for it was re-assigned by way of Memorandum, and not duly signed by the CIR or his duly authorized representative; and (2) Chief of Assessment Section at the Assessment Division, BIR-Manila has no personal knowledge with regard to the investigation conducted by ROs. In ruling, the Court agreed with the Defendant. ROs must be authorized, through LOA, in order that the said officers may validly examine the books of accounts and other accounting records of taxpayer. In the absence of an LOA, the assessment issued by the BIR against taxpayer shall be void, since it is a violation of the taxpayer’s right to due process. In the present case, it is admitted that ROs named in the LOA were not the ones who actually examined the Defendant’s books of accounts and other accounting records and the Chief of Assessment Section was also not authorized through an LOA. Thus, the Complaint was DISMISSED. [REPUBLIC OF THE PHILIPPINES VS. ROBIGIE CORPORATION, CTA OC CASE NO. 023, JUNE 8, 2020]
[REFUND OF ERRONEOUSLY WITHHELD FWT ON REPAIR SERVICES RENDERED UNDER RP-JAPAN TAX TREATY] [WITHHOLDING AGENT HAS A LEGAL RIGHT TO FILE A CLAIM FOR REFUND PROVIDED IT HAS THE OBLIGATION TO REMIT THE SAME TO THE PRINCIPAL TAXPAYER]
Petitioner Toledo Power Company filed a Petition for Review seeking refund or issuance of Tax Credit Certificate (TCC) on alleged erroneously paid taxes arising from income payments made to a non-resident foreign corporation. Petitioner argued that pursuant to RP-Japan Tax Treaty, payment is exempt from tax under the business profits rule. Likewise, as withholding agent, it has personality to file the claim for refund. On the other hand, Respondent countered that the Petitioner is without any personality to claim for refund as the right belongs to the person to whom the tax is imposed by the statute. Petitioner also failed to file any Tax Treaty Ruling Application (TTRA) with the BIR’s International Tax Affairs Division (ITAD) before the transaction, as required under Revenue Memorandum Order (RMO) No. 72-10. In ruling, the Court resolved that a withholding agent has a legal right to file a claim for refund for two reasons. First, he is considered a ‘taxpayer’ under the Tax Code as he is personally liable for the withholding tax as well as for deficiency assessments, surcharges, and penalties, should the amount of tax withheld be finally found to be less than the amount that should have been withheld under the law. Second, as an agent of the taxpayer, his authority to file the necessary income tax return and to remit the tax withheld to the government impliedly includes the authority to file the necessary income tax return and to remit the tax withheld to the government impliedly includes the authority to file a claim for refund and to bring an action for recovery of such claim. It is however significant to add that while the withholding agent has the right to recover the taxes erroneously or illegally collected, he nevertheless has the obligation to remit the same to the principal taxpayer. Thus, the Petition was GRANTED. [TOLEDO POWER COMPANY VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 9465, JUNE 8, 2020]
[REQUIRING PROOF BEYOND REASONABLE DOUBT FINDS BASIS NOT ONLY IN THE DUE PROCESS OF THE CONSTITUTION] [RIGHT OF THE ACCUSED TO BE “PRESUMED INNOCENT UNTIL THE CONTRARY IS PROVED”] ]FAILURE TO ESTABLISH SUFFICIENT PROOF BY PLAINTIFF LEADS TO ACQUITTAL OF THE ACCUSED]
Accused Bonner Purpura Armada, the sole proprietor and owner of Jovick Trading, is charged for violation of Section 255 in relation to Sections 253 and 256 of the 1997 Tax Code, for failure to pay alleged deficiency taxes for taxable year 2007. Violation provided under Section 255 pertains to willful failure to file and pay any tax due or to supply correct and accurate information at the times required by law. However, the Court noted that both Sections 253 and 256 are inapplicable in the cases at bar since accused is indicted in his personal capacity as a sole proprietor. To sustain conviction, plaintiff should have established the following elements; (1) accused is a person required by law to pay tax; (2) accused failed to pay tax at the time required by law; and (3) failure to pay the tax was willful. In the course of appreciation of evidences presented, the Court properly established that the accused is a person required to pay taxes thru verification of his registration with the BIR. As to the 2nd element, since these cases stemmed from the assessment issued by BIR which reached its finality due to failure of the accused to protest the FAN, the prosecution should prove beyond reasonable doubt that accused failed to pay taxes within the time prescribed by law. Although the hands of the Court are tied in ruling on the validity of the assessment, it can peruse over the contents of the assessment notices. Upon careful review of FAN, it was noted that no deadline for payment was indicated. Due to this, it is impossible for the Court to construe that the accused failed to pay deficiency taxes. Owing to the absence of the 2nd element, there could not be any finding that accused wilfully failed to pay the deficiency taxes. Thus, the accused was ACQUITTED of the offences charged for failure of the prosecution to prove guilt beyond reasonable doubt. [PEOPLE OF THE PHILIPPINES VS. BONNER PURPURA ARMADA, CTA CRIMINAL CASE NOS. 0-617 AND 0-618, JUNE 8, 2020]
REFUND OF INPUT VAT DENIED FOR FAILURE TO ACCOUNT ZERO-RATED SALES WITH INWARD REMITTANCE
Petitioner Carmen Copper Corporation filed a Petition for Review seeking reversal of Court in Division’s earlier decision partially denying its claim for refund or issuance of TCC on alleged excess and unutilized input taxes attributable to its zero-rated sales. Petitioner argued that it complied with all the requisites for a valid claim. On the other hand, Respondent countered that the Petitioner failed to substantiate its administrative claim for refund. In ruling, the Court determined whether the Petitioner has complied with the legal requisites for entitlement of VAT refund. Scrutiny of documents revealed that Petitioner failed to support complete, adequate and accurate factual substantiation that there is a zero-rated or effectively zero-rated sales. Upon examination of the evidence presented, Petitioner did not provide a reconciliation of its reported zero-rated sales vis-a-vis schedule of inward remittances. Thus, the Court was unable to trace the sales invoice amounts to the certification of inward remittances, and, therefore, the Petitioner failed to establish whether the remittances actually correspond to the zero-rated sales for the period covered by the present claim. In sum, Petitioner failed to fulfill the essential requisite under the law for the successful prosecution of the present refund claim. Consequently, the Petition was DENIED for lack of merit. [CARMEN COPPER CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA EN BANC CASE NO. 9726, JUNE 5, 2020]
[BANK-CERTIFIED CREDIT MEMO MUST BE SUBMITTED TO PROVE INWARD REMITTANCE OF FOREIGN CURRENCY FOR EXPORT SALES] [SALES TO BOI-REGISTERED ENTERPRISES WERE DISALLOWED FOR VAT ZERO RATING BECAUSE ALL BOI CERTIFICATES SHOW THAT THE VALIDITY PERIOD DO NOT COVER SUBJECT SALES]
Petitioner Orica Philippines, Inc. filed a Petition for Review seeking refund or issuance of TCC representing its alleged unutilized input VAT attributable to export sales for the second quarter of fiscal year ended September 30, 2015. Respondent CIR claimed that Petitioner failed to comply with Section 112 and 113 of the 1997 Tax Code particularly on the non-submission of Certification from BOC stating that Petitioner did not file any similar claim covering the same period and non-submission of complete bank credit memos to prove inward remittance of foreign currency for export sales and dollar remittance reconciliation of export sales vis-à-vis actual dollar remittance. In ruling, the Court resolved that Petitioner was unsuccessful in sufficiently adducing supporting documents to prove that the foreign currency payments were inwardly remitted. Non-submission of bank-certified credit memo or the Certificate of Inward Remittance is fatal to its claim. It is crucial that the proof of inward remittance of the payments in foreign currency be traced back to the export sales to which it relates. In this case, the unequivocal reference between the subject export sales and the inward transmittal of payments is missing. In addition, sales to BOI-registered enterprises must be disallowed for VAT Zero rating. Scrutiny of BOI certificates from BOI-registered customers shows that the validity period of all the certificates does not cover the subject second quarter sales. Consequently, the Petition was DENIED. [ORICA PHILIPPINES, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 9647, JUNE 4, 2020]
[THREE (3)-YEAR PRESCRIPTIVE PERIOD DOES NOT APPLY TO ISSUANCE OF LOA BUT TO ISSUANCE OF TAX ASSESSMENT] [3-YEAR PRESCRIPTIVE PERIOD SHALL BE SUSPENDED WHEN THE TAXPAYER REQUESTS REINVESTIGATION AND THE BIR GRANTS THE REQUEST] [BURDEN OF PROOF THAT TAXPAYER’S REQUEST FOR REINVESTIGATION HAD BEEN ACTUALLY GRANTED RESTS UPON THE BIR]
Petitioner First Far East Development Corporation filed a Petition for Review seeking cancellation of the assessment issued by the Respondent CIR. Petitioner claimed that it did not receive the Notice of Hearing sent by Respondent which could prove that its request for reinvestigation was given due course. In the absence of any indication that Respondent gave due course to its request for reinvestigation, the prescriptive period for purposes of collection of taxes was not suspended; thus, the subject assessments already prescribed. In ruling, the Court resolved that the running of the 3-year prescriptive period shall be suspended when the taxpayer requests reinvestigation and the BIR grants the same. To prove the fact of mailing, it is essential to present the registry receipt and the registry return card issued by the Postmaster of the Bureau of Posts bearing the signature of the recipient taxpayer or it’s duly authorized representative signifying receipt of the subject mail. Having no other evidence on record to prove that the request for reinvestigation was granted, right of the BIR to collect has indeed prescribed. Thus, the Petition was GRANTED and the assessments were CANCELLED. [FIRST FAR EAST DEVELOPMENT CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 9678, JUNE 4, 2020]
[WAIVER MUST INDICATE THE NATURE AND AMOUNT OF THE TAX DUE] [FAN CANNOT BE DEEMED AS A VALID ASSESSMENT IN THE ABSENCE OF A SPECIFIC DATE TO SETTLE]
Petitioner Panay Electric Company, Inc. filed a Petition for Review seeking cancellation of the assessment issued by the Respondent CIR citing prescription as a ground. Respondent argued that the right to assess and collect has not yet prescribed since the Petitioner executed Waivers of Statute of Limitation. In ruling, the Court resolved that waivers extending the prescriptive period of tax assessments must be compliant with Revenue Memorandum Order (RMO) No. 20-90 and must indicate the nature and amount of the tax due. Upon checking the subject waivers, it did not indicate the kind and amount of taxes to be assessed or collected. Hence, the same did not effectively extend the prescriptive period to assess. Even granting the said waivers are valid, the subject assessment is still void since the Court noted that the FAN does not contain a definite due date for payment. FAN cannot be deemed as a valid assessment in the absence of a specific date or period within which the alleged tax liabilities must be settled or paid. It must be emphasized that the date certain for the payment of tax liabilities is indispensable in an assessment as it dictates the time when the penalties, surcharges, and interests begin to accrue. Consequently, the Petition was GRANTED and the undated FAN was CANCELLED and SET ASIDE. [PANAY ELECTRIC COMPANY, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 9523, JUNE 1, 2020]
III. BIR FURTHER EXTENDS DEADLINE FOR TAX AMNESTY
Revenue Regulations (RR) No. 15-2020, issued on June 19, 2020, further extends the availment of tax amnesty on delinquencies until December 31, 2020. The extension intends to give taxpayers ample time to settle their tax delinquencies while allowing the BIR to increase its collection from this new tax amnesty program. The regulations likewise provide deadlines for BIR offices to process the documentary requirements needed to avail of the tax amnesty. The Certificate of Delinquencies/Tax Liabilities must be issued or denied with legal and factual basis within three (3) working days from the submission date of the request. In addition, the completed amnesty application and return must be endorsed for payment by the BIR within one (1) working day from complete submission. This streamlining ensures the BIR’s prompt processing of tax amnesty applications.
IV.BIR CIRCULARIZES THE LIST OF PRESCRIPTION DRUGS AND MEDICINES FOR DIABETES, HIGH-CHOLESTEROL AND HYPERTENSION EXEMPT FROM VAT BEGINNING JANUARY 27, 2020
Revenue Memorandum Circular (RMC) No. 62-2020, issued on June 23, 2020, circularizes the “List of Prescription Drugs and Medicines for Diabetes, High-Cholesterol and Hypertension Exempt from VAT Beginning January 27, 2020” provided by the Food and Drug Administration of the Department of Health.
V. BIR CIRCULARIZES EXTENSION OF DEADLINE ON AVAILMENT OF TAX AMNESTY ON DELINQUENCIES
RMC No. 61-2020, issued on June 15, 2020, further extends the deadline of availment of the tax amnesty on delinquencies from June 22, 2020 to December 31, 2020.
VI. TAX AND BUSINESS-RELATED NEWS [JUNE 20-26]
- Nike reports $790 million loss as sales plunge on COVID-19 hit
- SEC shuts down head office for COVID19 disinfection
- DOF probing POGOs operating without paying taxes
- Many BPO firms expect growth this year despite COVID-19 disruptions
- Firms now prefer hiring people with work-from-home setups: Jobstreet
- Palace insists: POGOs with unpaid taxes prohibited from operating
- SEC wants independent directors to control exchanges’ board majority
- SEC upholds right to inspect corporate records
- DOLE expects 30-40 pct cut in remittances after COVID-19 displaces 400,000 OFWs
- Cebu Pacific to lay off workers as travel demand nosedives due to COVID-19
- DOLE expects 4 million more workers to lose jobs by end of 2020
- Only 2 firms settled taxes despite permission for POGOs to operate during lockdown: senator
- MRT-3 ops suspended for 4 weekends in July-Sept for rail works
- DOLE urged to probe alleged non-payment of call center agents’ salaries during COVID-19 crisis
- Taxman eyes bloggers, YouTubers
Nike reports $790 million loss as sales plunge on COVID-19 hit [ABS-CBN News, June 26, 2020]
Sports giant Nike reported a surprise loss Thursday as shutdowns due to COVID-19 prompted a big drop in revenues in spite of higher online sales.
SEC shuts down head office for COVID19 disinfection [Philippine Daily Inquirer, June 25, 2020]
The Securities and Exchange Commission (SEC) is suspending head office operations at the Philippine International Convention Center in Pasay City from June 26 to 30 to pave the way for disinfection of the premises after four workers tested positive for coronavirus (COVID-19).
Source: https://business.inquirer.net/300947/sec-shuts-down-head-office-for-covid19-disinfection#ixzz6QRodpyp1
DOF probing POGOs operating without paying taxes [Philippine Daily Inquirer, June 25, 2020]
The Department of Finance (DOF) is looking into reports that some Philippine offshore gaming operators (Pogos) had reopened despite their unpaid taxes, Secretary Carlos Dominguez III said on Wednesday.
Source: https://business.inquirer.net/300843/dof-probing-pogos-operating-without-paying-taxes#ixzz6QRosgt7g
Many BPO firms expect growth this year despite COVID-19 disruptions [ABS-CBN News, June 25, 2020]
A big part of the business process outsourcing (BPO) industry expects to expand this year despite the challenges posed by the COVID-19 pandemic.
Firms now prefer hiring people with work-from-home setups: Jobstreet [ABS-CBN News, June 25, 2020]
Online jobs portal Jobstreet.com said people who already have a work-from-home setup have an advantage in today’s career marketplace.
Palace insists: POGOs with unpaid taxes prohibited from operating [ABS-CBN News, June 25, 2020]
Malacañang on Thursday stood by its policy that Philippine Offshore Gaming Operators (POGOs) need to settle their taxes first before being allowed to operate.
SEC wants independent directors to control exchanges’ board majority [Philippine Daily Inquirer, June 24, 2020]
The Securities and Exchange Commission (SEC) plans to require local exchanges and other organized markets to reserve at least a majority of the corporate board seats for independent directors, citing the need to align with global best practices.
SEC upholds right to inspect corporate records [Philippine Daily Inquirer, June 24, 2020]
The Securities and Exchange Commission (SEC) is finalizing new guidelines to uphold the right of stakeholders to inspect corporate records in line with efforts to improve corporate governance and transparency.
Source: https://business.inquirer.net/300758/sec-upholds-right-to-inspect-corporate-records#ixzz6QRpI5gYj
DOLE expects 30-40 pct cut in remittances after COVID-19 displaces 400,000 OFWs [ABS-CBN News, June 24, 2020]
The Department of Labor and Employment (DOLE) on Wednesday said it expected overseas Filipino workers’ (OFW) remittances to be reduced by 30 to 40 percent this year as migrant workers continue to be displaced by the coronavirus pandemic.
Cebu Pacific to lay off workers as travel demand nosedives due to COVID-19 [ABS-CBN News, June 24, 2020]
Cebu Pacific, the country’s largest airline, confirmed on Wednesday that it would be implementing job cuts in the next two to three months as the COVID-19 pandemic has caused travel demand to plunge.
DOLE expects 4 million more workers to lose jobs by end of 2020 [ABS-CBN News, June 24, 2020]
Department of Labor and Employment (DOLE) Secretary Silvestre Bello III on Wednesday said about 4 million more workers may lose their jobs by the end of 2020 as the coronavirus disease 2019 (COVID-19) pandemic continues to affect businesses in the country.
Only 2 firms settled taxes despite permission for POGOs to operate during lockdown: senator [ABS-CBN News, June 23, 2020]
Only two Philippine Offshore Gaming Operator (POGO) firms have paid taxes despite the industry being allowed to resume operations during the coronavirus disease 2019 (COVID-19) lockdown, Sen. Joel Villanueva said Tuesday.
MRT-3 ops suspended for 4 weekends in July-Sept for rail works [ABS-CBN News, June 23, 2020]
The operations of the MRT-3 will be suspended for 4 weekends between July and September to fast-track the replacement of its rails that will push up the running speed of trains, the Department of Transportation (DOTr) said Tuesday.
DOLE urged to probe alleged non-payment of call center agents’ salaries during COVID-19 crisis [ABS-CBN News, June 22, 2020]
Sen. Imee Marcos on Monday urged the Department of Labor and Employment (DOLE) to investigate alleged labor violations in call centers, saying she received reports that several agents have not received their salaries during the coronavirus disease 2019 (COVID-19) pandemic
Taxman eyes bloggers, YouTubers [Philippine Daily Inquirer, June 2020]
A popular political blogger, whose site was launched in 2017 and has drawn 250,000 followers, used to earn an average of P15,000 to P25,000 monthly from Google ads and instant articles from Facebook.
Source: https://business.inquirer.net/300459/taxman-eyes-bloggers-youtubers#ixzz6QRprCDk7
If you wish to get a copy of the complete texts of the above issuances, send us an email thru taxseminars@dmdcpa.com.ph.
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