Orientation Seminar for Tax
Agents and Practitioners
Susan D. Tusoy, cpa, mps
Asst. Chief, Assessment Division
It is impossible to begin to learn that which
one thinks one already knows.
- Epictetus
REGISTRATION OF
BOOKS OF ACCOUNTS
Registration of Manual Books of
Accounts (RMC 82-2008)
Registration Procedures:
1. Manual books of accounts previously
registered
– whose pages are not yet fully exhausted
can still be used in the succeeding years
without the need of re-registering or restamping
– the portions pertaining to a particular year
should be properly labelled or marked by
the taxpayer.
Registration of Manual Books of
Accounts (RMC 82-2008) cont...
2. The registration of a new set of manual
books of accounts shall only be at the
time when the pages of the previously
registered books have all been already
exhausted.
• Not necessary to register new set of manual books
of accounts each and every year.
Registration of Manual Books of
Accounts (RMC 82-2008) cont...
3. other deadlines
•
Jan. 30 of the ff year (RMO 29-2002) applies only
to computerized books of accounts and not to
manual books of accounts
•
The “15 days after the end of the calendar year”
(RMC 13-82) refers to loose-leaf books of accounts
and not to manual books of accounts
Registration of Manual Books of
Accounts (RMC 82-2008) cont...
4. Newly registered taxpayers shall present
the Manual Books of Accounts before
use to the RDOs where the place of
business is located or concerned office
under the Large Taxpayer Service for
approval and registration.
Registration of Manual Books of
Accounts (RMC 82-2008) cont...
5. Subsidiary manual books of accounts to
be used by taxpayers, in addition to the
manual books of accounts, shall be
registered before use, following the same
rules.
6. TSS personnel has no authority to
examine whether the previously
registered books are complete and/or
updated prior to its approval.
On CAS – (RMO 29-2002)
The requirement of binding and stamping of
computerized books of accounts and/or
receipts and invoices are no longer
necessary, provided that:
1. Soft copy of the CAS in text file format
shall be made available in the ff mode:
– In CD-ROM (read only) properly labelled
– Electronically archived information
In case the TP has no capability to submit in CDROM form, procedures under the manual system
shall prevail
On CAS – (RMO 29-2002) con’t...
2. A duly notarized certification in the form of
an affidavait ascertaining/attesting the
accuracy of the ff shall be submitted to the
RDO within 30 days from the close of the
taxable year:
–
–
The number of receipts and invoice used during the
year; and
Soft copy in CD-ROM duly stamped “registered” and
signed by authorized official or the archived books of
accounts
On Loose Leaf (RMC 13-82)
• TP should be required to bind the loose
leaf forms within 15 days after the end of
the taxable year
Taxpayers’ Responsibility for
Representations Made in their
Behalf by Their Tax Agents
(RMC 82-2007)
Taxpayers’ Responsibility for Representations Made
in their Behalf by Their Tax Agents (RMC 82-2007)
• The contents and representations of the
tax returns and information statements
remain the responsibility of the taxpayers
in their capacity as the principals;
• The taxpayers are under strict obligation to
check, verify, and validate the
– Authenticity
– Correctness and
– Validity of the returns/information filed with the
BIR
Taxpayers’ Responsibility for Representations Made in
their Behalf by Their Tax Agents (RMC 82-2007)
• Any findings, errors, violations or infractions
noted therein as a result of such verification
and authentication procedures shall render
both the taxpayer and his/its tax agent civilly,
administratively and criminally liable, pursuant
to existing rules and regulations.
Submission of the Statement of Management
Responsibility (RR 3-2010)
• Since the Annual ITR is primarily the
responsibility of the management of the
taxpayer, this shall be accompanied by a
Statement of Management’s
Responsibility;
• All taxpayers required to file annual
income tax return shall required to submit
a Statement of Management’s
Responsibility.
SHOW CAUSE LETTER TO
ERRING CPAs
Memo No. OPM No. 10-08-001
Show Cause Letter to “Erring CPAs”
Memo No. OPM No. 10-08-001
-In its bid to improve tax compliance, the BIR
has started writing “show cause letters” to
CPAs who issued unqualified opinions in
the audit reports of their clients’ F/S where
there were validated and verified
misstatements in said statements.
Show Cause Letter to “Erring CPAs”
• While their responsibility is limited to that of
expressing an opinion on the financial
statements, the BIR believes that had they
undertook the generally required audit
procedures they could have easily
uncovered probable big understatements.
Show Cause Letter to “Erring CPAs”
• The CPAs concerned were given ten (10)
days from receipt of the show cause letter
to explain in writing the findings of the BIR.
• Erring CPAs may face suspension or
revocation of their accreditation and
possibly their license to practice.
ANNUAL INVENTORY LIST
Revenue Memorandum Circular No. 2-84
Annual Inventory List (RMC 2-84)
• Please be reminded on the submission of
Annual Inventory List of stocks-in-trade,
raw materials, goods in process, supplies
and other goods
– Quantity
– Description
– Unit cost
– Total cost
– Method of costing or valuing their inventory
Annual Inventory List (RMC 2-84)
• Deadline
– Beg. Inventory shall be submitted within 10
days after starting the business
– Subsequent inventory list shall be submitted
not later than 30 days after the close of the
calendar year or accounting period
ADDITIONAL REQUIREMENTS
IN THE PREPARATION AND
SUBMISSION OF FINANCIAL
STATEMENTS
Revenue Regulations No. 15-2010
Additional Requirements in the
Preparation and Submission of F/S
• RR 15-2010 (amending RR 21-02)
• The notes of f/s shall include info on taxes,
duties and license fees paid or accrued
during the taxable year
1. The amount of VAT Output tax and the
account title and amount/s upon which the
same was based,
Additional Requirements in the
Preparation and Submission of F/S
2. The amount of VAT Input taxes claimed broken
down into:
a. Beginning of the year
b. Current year’s domestic purchases/
payments
–
–
–
–
–
–
Goods for resale/manufacture or further processing
Goods other than for resale or manufacture
Capital goods subject to amortization
Capital goods not subject to amortization
Services lodged under cost of goods sold
Services lodged under other accounts
Additional Requirements in the
Preparation and Submission of F/S
c. Claims for tax credit/refund and other
adjustments; and
d. Balance at the end of the year.
3. The landed cost of imports/customs duties/
tariff fees
4. The amount of excise tax
5. DST on loan instruments, shares of stock, etc.
6. All taxes (local or nat’l) including real estate
taxes, licence and permit fees accounts both
under Cost of Sales and Opex accounts
Additional Requirements in the
Preparation and Submission of F/S
7. The amount of withholding taxes categorized
into:
- Tax on compensation and benefits
- Creditable withholding taxes
- Final withholding taxes
8. Periods covered and amount/s of deficiency
tax assessments, whether protested or not
9. Tax cases, and amounts involved, under
preliminary investigation, litigation and/or
prosecution in courts or bodies outside the
BIR
TAXABILITY OF
AGRICULTURAL CONTRACT
GROWERS
Revenue Memorandum Circular No. 97-2010
Taxability of Agricultural Contract
Growers (RMC 97-2010)
• Toll processing services confirmed as
VAT exempt pertain only services to clients
from which growing of animals were
contracted.
• Preparing and packaging hogs/chicken
ready for delivery after producing or
growing them can be said to be within the
purview of agricultural contract growing.
Taxability of Agricultural Contract
Growers (RMC 97-2010)
• If such an activity is done independently of
growing poultry, livestock, or other
agricultural and marine food products, the
same can be considered as VAT taxable
services not covered by agricultural
contract growing.
GUIDELINES AND
PROCEDURES IN THE
TREATMENT OF UNSERVED
LNs, LAs and TVNs
Revenue Memorandum Circular No. 98-2010
Unserved LNs, LAs, and TVNs
(RMC 98-2010)
• Every effort shall be made to serve LNs,
LAs, and TVNs
• ROs must obtain appropriate certifications
from any two of the ff org./offices:
–
–
–
–
–
–
Barangay Office
Municipal/City Gov’t. Business Permit/Licensing Office
DTI
SEC
MERALCO
PLDT
Unserved LNs, LAs, and TVNs
(RMC 98-2010)
• In the event that any two of the above
offices certify that concerned TP does not
appear in their records, the TP shall be
given “Cannot be Located” (CBL) status in
the records of the Bureau
• Names of TP shall be submitted to AITEID
for publication
– TP is given 15 days to communicate with the
Bureau
Unserved LNs, LAs, and TVNs
(RMC 98-2010)
• The concerned BIR office shall
recommend the cancellation of registration
and invoicing privileges
• The assessment for the tax due shall be
made as follows:
– In case of LNs, assess def. taxes based on
discrepancies per LN
- In case of LAs/TVNs – assess def. tax based on best
evidence obtainable
*shall be posted in the BIR website
Unserved LNs, LAs, and TVNs
(RMC 98-2010)
• A list of TPs with CBL status whose
registration and invoicing privileges have
been recommended for cancellation shall
be published in the BIR website and in 2
newspapers of general circulation
– Purchases made from them shall not be allowed as
deduction for IT purposes
– Input taxes from such TP shall be disallowed for VAT
purposes
*it shall not deter the BIR from pursuing legal remedies
Electronic Filing and Payment
System (eFPS)
What is eFPS?
• eFPS stands for Electronic Filing and
Payment System, and it refers to the
system developed and maintained by the
BIR for electronically filing tax returns,
including attachments, if any, and paying
taxes due thereon, specifically through the
internet.
What is e-Filing?
• e-Filing is the process of electronically
filing returns including attachments, if any,
specifically through the internet.
What is e-Payment?
• e-Payment is the process of electronically
paying a tax liability through the internet
banking facilities of Authorized Agent
Banks (AABs).
What are its objectives?
• paperless tax filing
• can pay their taxes online through the
convenience of an internet-banking
• taxpayers can file and pay for their taxes
anytime, anywhere as long as he or she is using
a computer with an internet connection.
What are the benefits of the system?
• Convenient to use - it is quick and simple
to use, as well as secure
• Interactive - information exchange is
immediate and online
• Self-validating - errors are minimized
• Fast - response or acknowledgment time is
quicker than manual filing
What are the benefits of the
system?
• Readily available – it is available 24 / 7
including holidays
• Secure - return and payment transactions
are more secure, as all data transmission
is encrypted
• Cost effective - processing cost of returns
and payments is minimized (e.g. receiving,
pre-processing, encoding, error-handling
and storage)
Coverage
•
•
•
•
•
•
•
Large Taxpayers
Volunteering Taxpayer
Top Twenty Thousand Companies
Top 5,000 Individual Taxpayers
Local Government Units
Bidder/s
Bank Borrower/s
Coverage
•
•
•
•
Stock Broker/s
10 Million Paid Up Capital
CAS(Computerized Accounting System
Volunteering Large & Non-Large
Taxpayers registered with the Integrated
Tax System and with e-mail account and
internet access; and
• Volunteering BIR National Office
employees
REVENUE OFFICERS’
ACTIVITY REPORT
RMO 25-94
RO’s Activity Report (RMO 25-94)
• Log Sheet must be properly accomplished
and attached to docket
Name of Taxpayer :
Period Covered of Audit:
Letter of Authority No.:
Date Issued
REVENUE OFFICER'S ACTIVITY REPORT
DATE
ACTIVITY
Prepared by:
NO. OF
HOURS
NAME AND DESIGNATION OF
PERSON/S CONTACTED/TAP
ACCREDITATION NO.
Noted by:
For more information
Visit our website at
www.bir.gov.ph
You can download a copy of this
presentation at:
www.susantusoy.weebly.com
It's what you learn after
you know it all that
counts.
- John Wooden