Presented by:
CYNTHIA E. OMERES
Revenue Officer
RR No. 19, Assessment Division
1
Change in Accounting
Period
(Sec. 46 of NIRC, RR 3-2011 and
RR 9-2011)
2
Original Accounting Period (Calendar Year / Fiscal Year)
Taxpayer other than
INDIVIDUAL
Change accounting
period to
FISCAL YEAR
CALENDAR
YEAR
ANOTHER
FISCAL
YEAR
1.
Letter Request addressed to the RDO / LT
Office having jurisdiction over the place of
business of the taxpayer;
2.
Duly filled-up BIR Form No. 1905;
3.
Certified true copy of the SEC approved
Amended By-Laws showing the change in
accounting period;
4
4.
5.
Sworn certification of “ non-forum
shopping” stating that such request has
not been filed or previously acted upon by
the BIR-National Office, signed by the
taxpayer
or
duly
authorized
representative; and
A sworn undertaking by a Responsible
Officer of the Taxpayer. (Annex A of RR 3-2011)
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 The
request for approval of the
change in accounting period should
be filed at anytime not less than
sixty (60) days prior to the
beginning of the proposed new
accounting period
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To
the BIR, Revenue District Office
or Large Taxpayers Office having
jurisdiction over the place of
business of the taxpayer
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Stamping of Income Tax
Returns and Attachments
(RMO 6-2010, RMO 13-2010 and
RMO 13-2011)
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

The ITR shall be stamped “Received”
on the space provided for in the three
(3) copies of the returns;
Any tax return in excess of three (3)
shall not be received;
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

The attachments to the ITR shall also
be stamped “Received”;
The attached Financial Statements shall
also be stamped “Received” but only
the Audit Certificate, Balance Sheet and
Income Statement;
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
In the case of Corporations, and other
Juridical persons, an extra two (2)
copies of the Audit Certificate, Balance
Sheet and Income Statement shall be
stamped “Received” for filing with the
SEC.
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VAT Reporting
-Standard Format(RMC 17-2011)
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Add Your Title
Requirements of Lessors
(RR 12-2011 and
RR 15-2011)
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To
Ensure that the person intending to
lease
their
commercial
spaces,
buildings and establishments is a BIRregistered taxpayer, which should have
the following:
 TIN;
 BIR Certificate of Registration; and
 Duly registered receipts and invoices.
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



To submit the following information,
under oath, in hard and soft copies:
Building / space layout of the entire area being
leased with proper unit/space, address or
reference;
Certified true copy of Contract of Lease per tenant;
and
The Lessee Information Statement.
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17
18

Every 31st of January starting the
current year (for tenants as of
December 31st of the previous year) and
31st of July starting from the current
year.
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Failure to submit;
 Submitted falsified information; and
 Knowingly
transact with not duly
registered taxpayers.

A penalty of not less that P 10,000.00
and Imprisonment of not less that one
(1) year but not more that ten (10) years
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Income Tax Returns
-New Forms(RMC 57-2011/RR 19-2011)
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



Income tax filing covering and starting with
calendar year 2011, which are due for filing
on or before April 15, 2012 the following
revised forms are to be used:
BIR Form 1700 version November 2011
BIR Form 1701 version November 2011
BIR Form 1702 version November 2011
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All juridical entities following fiscal year of
reporting are required to use the new BIR
Form 1702 starting with those covered by
fiscal year ending January 31, 2012.
 Disclosures
on
the
Supplemental
Information portion of BIR Form 1700 and
1701 will be “OPTIONAL” for calendar year
2011 and will be “MANDATORY” for calendar
year 2012.

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


BIR Form 1700 RMC-2011-57-1700 nov
2011.pdf
BIR Form 1701 RMC-2011-57-1701 nov
2011.pdf
BIR Form 1702 RMC-2011-57-1702 nov
2011.pdf
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Statement of Management
Responsibility
(RR 3-2010)
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
1)
2)
The Management is responsible for the
following:
Information and representations contained in the
ITR and the attached FS; and
All other tax returns filed for the reporting
period.
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
1)
2)
The Management affirms the following:
That attached FS and ITR are in accordance with
the books and records;
That the ITR has been prepared in accordance
with the provisions of the NIRC;
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
3)
4)
The Management affirms the following:
That any disparity of figures between the ITR and
FS has been reported as reconciling items and
maintained in the books; and
That all applicable tax returns has been filed and
the taxes shown thereon has been paid.
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Taxpayer or Both Spouses, in case of
Individual.
 In case of a Juridical entities:

President/Managing Partner
 Chief Executive Officer or its equivalent
 Chief Financial Officer or its equivalent


In case of a Foreign Corporation, the
local manager shall be the signatory.
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Preparation & Submission
of Financial Statements
Accompanying
The Tax Returns
(Sec. 6(H) & Sec. 244 of the NIRC;
RR 21-2002; RR 7-2007; RR 8-2007)
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Shall state the accounts therein in a very
descriptive fashion;
 The account titles must be specific and not
control accounts;
 Must conform to standards promulgated by
the FRSC of the Philippines;
 Must conform to the rules and requirements
of regulatory agencies such as the SEC, BSP,
IC and etc.

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a)
b)
Balance Sheet
Income Statement / Profit & Loss Statement
I.
Sales/Revenues
II.
Cost of Goods Sold / Cost of Services
III. Selling & Administrative Expenses
IV. Financial Expenses (if any)
V.
Other Income
VI. Other Expenses
Note:
Items I, IV, V & VI – should be fully explained in the
Notes to the Financial Statements
Items II & III – should be supported with schedules
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c)
Statement of Changes in Equity showing either:
 All changes in equity
 Changes in equity, other than those arising
from transactions with equity holders acting in
their capacity as equity holders
d)
Statement of Cash Flow
e)
Notes (comprising a summary of significant
accounting policies & other explanatory notes)
f)
Schedules attached to the afore-cited statements
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Financial
Accounting
Tax
Accounting
Reconcile
maintain books & records, recording & presentation shall be done
in a manner that it will be understood by the
examiners/auditors of the BIR


To reflect in its books of accounts the
adopted/accepted
year-end
adjusting
entries; and
Be made available to the investigating
officers of the BIR upon audit, the working
papers prepared pertinent to the
adjustments made.
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
To maintain and preserve copies of the
audited and certified Financial Statements
for a period of three (3) years from the due
date of filing the ITR or the actual filing
thereof whichever comes later.
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
Any independent CPAs who, in his capacity
as external auditor, willfully falsifies any
report or statement, shall be dealt with in
accordance with Sec. 257 of the Tax Code, as
amended, shall be subject to the applicable
penalty provisions of RR 11-2006.
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The end
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