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March 20, 1:00-5:00 PM
Latest Tax Developments and How They Impact Your Business
Dr. Ruperto P. Somera
Important Note: All outlines may be modified without prior notice.
Pertinent Tax Developments / Revenue Memoranda and/or Regulations
Mandatory Enrolment to and Availment of the Electronic Filing Payment System (EFPS) Facility for
Selected Taxpayers
Expanding the Coverage of Taxpayers Required to File Returns and Pay Taxes through the
Electronic Filing and Payment System (EFPS) of the Bureau of Internal Revenue
Optional Standard Deduction (OSD) Allowed to Individuals and Corporations in Computing Their
Taxable Income
Determination of the Optional Standard Deduction (OSD) of General Professional Partnerships
(GPPS) and the Partners, as well as the Manner and Period for Making the Election to Claim OSD in
the Income Tax Returns
Submission of the Statement of Management Responsibility
Accreditation of Tax Practitioners/Agents as a Prerequisite to Their Practice or Representation
before the Bureau of Internal Revenue
Securing of Certified True Copies of Income Tax Returns and Audited Financial Statements
Revenue Regulation Relative to the Stamping of Income Tax Returns and the Attached Audited
Financial Statements, and the Number of Copies of Tax Returns to be Submitted and Filed
Maintenance, Retention, and Submission of Electronic Records
Implementing the Electronic Documentary Stamp Tax System to Replace the Documentary Stamp
Tax Electronic Imprinting Machine
Additional Criteria in the Determination of Top 20,000 Private Corporations, Including the Threshold
on Their Purchases of Agricultural Products, and Additional Transactions Subject to Creditable
Withholding Tax on Income Payments Made by the Top Five Thousand (5,000) Individual
Taxpayers Engaged in Trade/Business or Practice of Profession
Issuance of TIN Card and the Transfer of Registration
Revised Guidelines in the Requests for the Production of the Books of Accounts and/or Other
Records and Documents and in the Issuance of Subpoena Duces Tecum for Failure of Taxpayers to
Comply with the Requests
The Manual Issuance of Las and Tvns shall be Discontinued for All Investigating Offices Under the
Regional Offices, the Large Taxpayer Service (LTS), The Enforcement Service (ES), and the Various
Task Forces and Special Teams Authorized by the Commissioner of Internal Revenue to Conduct
Audit/Investigation
Enjoining the Strict Implementation of the Penalty Provisions for the Non-Submission of Quarterly
Summary Lists of Sales and Purchases
Minimum Wage Tax Exemption Revenue Regulation
An Act To Maximize the Contribution of Senior Citizens to Nation Building, Grant Benefits and
Special Privileges and for Other Purposes
Exchange of Information Regulation
Guidelines on Availment of the Fifteen Percent (15%) Preferential Income Tax Rate for Qualified
Filipino Personnel Employed by Regional or Area Headquarters (RHQS) and Regional Operating
Headquarters (ROHQS) of Multinational Companies
Late/Out-Of-District Filing of Tax Returns
Additional Procedural and/or Documentary Requirements in Connection With the Preparation and
Submission of Financial Statements Accompanying the Tax Returns
Guidelines Rules & Procedures in the Filing Of Confidential Information & the Investigation of Cases
Arising Therefrom
An Act Authorizing the Commissioner of Internal Revenue to Prescribe the Place for Payment of
Internal Revenue Taxes By Large Taxpayers and Prescribing the Coverage and Criteria for
Determining Large Taxpayers
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Audit of Tax Returns by RDOs
Tax Treatment of Income Earnings and Money Remittances of an Overseas Contract Worker (OCW)
or Overseas Filipino Worker (OFW)
Filing of Income Tax Return and/or Annual Information Return by Individuals, Including Estates and
Trusts
Suspension of the Implementation Of Revenue Regulations No. 2-2011
Regulations Providing for the Policies, Guidelines and Procedures on the Application for Change in
Accounting
Proper Allocation of Costs and Expenses Amongst Income Earnings of Banks and Other Financial
Institutions for Income Tax Reporting Purposes
Amendments with Respect to “De Minimis Benefits”
Policies in the Tax Treatment of Campaign Contributions and Expenditures
On Distilled Spirits
Amendment to Revenue Regulations No. 3-2011, Guidelines and Procedures on the Application for
Change in Accounting Period
Providing a Cost of Living Allowance in the National Capital Region and Clarifying Its Tax
Implications to Minimum Wage Earners Exempt from Income Tax Pursuant to Republic Act No.
9504
Amending Certain Provisions of Revenue Regulations No. 16-2005 as Amended by Revenue
Regulations No. 4-2007, Otherwise Known as the Consolidated Valued-Added Tax Regulations of
2005, As Amended
Amended Audit Criteria for Taxable Years 2009-2010
Revenue Regulations Defining Gross Receipts for Common Carrier’s Tax for International Carriers
Reportorial Requirement for Establishments Leasing or Renting Out Spaces for Commercial
Activities
Implementing the Tax Provisions of Republic Act No. 9856 Otherwise Known as “The Estate
Investment Trust Act of 2009”
Prescribing the Regulations Governing the Manner of the Issuance of Tax Credit Certificates, and
the Conditions for Their Use, Revalidation and Transfer
Amendment to Section 5 of Revenue Regulations No. 12-2010
Circularization of the Relevant Excerpts from the En Banc Supreme Court Decision in GR 193007, on
the Imposition of Value Added Tax on Toll Fees
Clarification of Issues Concerning the Imposition of Improperly Accumulated Earnings Tax Pursuant
to Section 29 of the Tax Code of 1997, in Relation to Revenue Regulations No. 2-2001
Clarifications on the Application of Expanded Withholding Tax on the Payments of Philippine Health
Insurance Corporation To Medical Practitioners and/or Hospitals Pertaining to PHIC Members’
Benefits
Value-Added Tax on Tollway Operators
New Income Tax Forms
Increasing the Amount of Threshold Amounts for Sale of Residential Lot, Sale of House and Lot,
Lease of Residential Unit and Sale or Lease of Goods or Properties or Performance of Services,
Amending Certain Provisions of Revenue Regulations No. 16-2005, as Amended Otherwise Known
as Consolidated VAT Regulations Of 2005
Implementing the Tax Provisions of Republic Act No. 9505, Otherwise Known as the “Personal
Equity and Retirement Account (PERA) Act of 2008”
Providing Penalties for Violation of the Requirement That Output Tax on the Sale of Good and
Services Should Be Separately Indicated in the Sales Invoice or Official Receipt
Latest Tax Developments of 2012
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March 21
Topic 1 (AM Technical Session): Year-End Tax Planning and Strategies
Atty. Victorino C. Mamalateo
Objectives of Year – End Tax Planning
Avoiding Improperly Accumulated Earnings Tax
Relief from Minimum Corporate Income Tax
Year End Strategies on Net Operating Loss Carry Over
Optimized Tax Deductions
Tax Strategies of Fringe Benefits
Withholding Tax Strategies
Value Added Tax Strategies
Compliance in Bookeeping Rules and Regulations
Strategies on Civil Remedies
March 21
Topic 2 (AM Technical Session): All About Value Added Tax (VAT):
A Comprehensive Discussion
Dr. Ruperto P. Somera, Phd, CPA, DBA
Definition of Value Added Tax
Accounting Entries for Sales of Services
Stages of VAT
Rates of VAT
Persons Liable To VAT
Requisites for Taxability of Sale of Goods or Properties
Types of Sale
VAT Coverage
Newly Vatable Transactions (Previously Exempt Under Sec. 109 or Zero-Rated)
Newly Vatable Services (Previously Subject To Percentage/Franchise Tax)
Excise Tax (Title VI)
Categories of VAT Exemptions
VAT-Exempt Transactions
Output Tax
Allowable Input Tax
Tax Credit Payment
VAT on Importation of Goods
Allowable Deduction from Gross Selling Price
Zero-Rated Sales
Zero-Rated Sales of Goods
Gross Receipts
Vat on the Sale of Services
Input Tax
Persons Who Can Avail of the Input Tax Credit
Input Tax on Depreciable Goods
Substantiation Requirements on Input Tax
Input Tax on Depreciable Goods
Creditable Input Tax
Transitional Input Tax Credits
Presumptive Input Tax Credits
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Final Withholding VAT on Government Purchases
Refunds or Tax Credits of Input Tax
Apportionment of Input Tax on Mixed Transactions
Substantiation of Input Tax Credits
Bookkeeping Requirements
Claims for Refund/Tax Credit Certificate of Input Tax
Sale of Real Properties
“Gross Selling Price”
Withholding of VAT on Government
Money Payments and Payments to Non-Residents
Transactions and Amounts that Are Subject to VAT
Revenue Memorandum Circular No. 39-2007
March 21
Topic 3 (AM Technical Session):
Expanded Withholding Tax and Allowable Deductions in
the Preparation of Corporate Income Tax
Nelson Soriano, CPA, MBA
Expanded Withholding Tax
Underlying Law and Regulations
Nature and Basic Principles of EWT
Withholding Agents
Exemptions from Withholding
Timing of Withholding
Effects of Failure to Withhold EWT
Remedies
EWT Base
Tax Credit Mechanism
Payments Subject to EWT
Administrative Requirements
Allowable Deductions
Expenses – General Requirements
Requisites for Deductibility, Limitations and Substantiation Requirements Entertainment, Amusement
and Recreation Expenses
Interest
Taxes
Bad Debts
Depreciation
Charitable and Other Contributions
Research and Development
Pension
Allocated Expenses by Head Office
Senior Citizen Discount
Standard Input Tax
Non-Deductible Expenses
Expenses – Remedies If Disallowed
Net Operating Loss Carry-Over (NOLCO)
Optional Standard Deduction (OSD)
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March 21
Topic 4 (AM Technical Session):
IFRS Standards on Deferred Income Tax
Dr. Rosalinda Evangelista, Phd, CPA
* Outline Not Available
March 21
Topic 5 (PM Technical Session):
Common Taxation Errors
Cristina Castueras-Yu, CPA, Licensed Customs Broker
Registration
Improper Timing and Venue of Filing and Payment of Registration Fee
Non-Registration Head Office, Branches, and Facilities Separately
Non-Registration of All Types of Internal Revenue Taxes Applicable to the Taxpayer
Non-Declaration of Any Update in Registration Information
Non-Filing of Authority to Print Receipts and Invoices
Filing Of Tax Returns (General)
Improper Timing of Filing and Payment of Tax Return
Failure to Use the Enhanced Tax Returns and Comply With Certain Filing Requirements
Incomplete Information in the Tax Returns and Other Required Attachments
Non-Filing of Required Attachments to Tax Returns
Improper Alphanumeric Tax Code (ATC) Used
Mathematical Errors
Failure to Indicate Position and Tax Identification Number (TIN) Of Signatories
Non-Filing of No-Payment Tax Returns
Failure to Elect Treatment of Any Excess Tax Credits (For Income Tax and VAT)
Effecting of Prior Period Adjustments in the Current Tax Returns
Income Tax
Computation of Tax
Failure to Assess Benefit of Availing Optional Standard Deduction (OSD) or Itemized Deductions
in the 1st Quarter
Non-Computation of Unallowable Interest Expense
Non-Computation of Unallowable Entertainment, Amusement, and Representation (EAR) Expense
Claiming of Expenses Not Yet Subjected To Withholding Taxes
Claiming of Expenses That Are Mere Provisions
Filing of Tax Return
Failure to Indicate Whether to Avail OSD or Itemized Deductions
Failure to Carry-Over Prior Year Excess Credits
Improper Presentation of Net Operating Loss Carry-Over (NOLCO) and Excess Minimum
Corporate Income Tax (MCIT) in the Return and in the Audited Financial Statements
Improperly Supported Creditable Withholding Taxes (CWT)
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Value Added Tax
Computation of Tax
Improper Timing of Subjecting Sales to Output VAT
Non-Subjecting of Other Income to Output VAT
Issuance of VAT ORs for Zero-Rated and/or VAT-Exempt Transactions
Non-Compliance with VAT Zero-Rating Requirements
Non-Compliance with Invoicing Requirements for Output VAT Purposes
Improper VAT Base Used (Issue On Sales Discount, Returns, Etc.)
Improper Timing of Claiming Input VAT on Purchases of Services
Failure to Satisfy Invoicing Requirements for Valid Claiming of Input VAT
Filing of Tax Return
Non-Filing of Summary List of Sales, Summary List of Purchases, and Summary List of
Importations
Non-Computation of Unallowable Input Tax Related to VAT-Exempt Sales
Non-Computation of Excess Input Tax Over Standard Input VAT (On Sales To Government)
Withholding Taxes
Improper Timing of Withholding
Non-Withholding of 1%/2% on All Other Purchases of Goods and Services Not Specifically
Enumerated in the Withholding Tax Regulations, In Case Of Large Taxpayers and Top 20,000
Corporations
Failure to Obtain Sworn Declaration Of Gross Income from Suppliers or Professional Services
Non-Withholding Of Expanded Withholding Tax (EWT) on Employee Reimbursements
Issue on Reimbursements of Broker’s Charges
Improper Use of Tax Treaty Rates for Final Withholding Tax (FWT) on Payments to Nonresidents
Improper Tax Table Used in Computing Withholding Tax on Wages (WTW)
Timing of Issuance of Employee Withholding Statements
Penalties
Interest
Surcharge
Compromise Penalties
Disallowance of Expenses as Deduction for Income Tax Purposes
Disallowance of Input Tax as Credit Against Output VAT
Non-Prescription of Taxable Years
March 21
Topic 6 (PM Technical Session):
Secrets and Strategies in Tax/Financial Auditing
Erick Pizarro, CPA
Administrative Requirements of the Bureau of Internal Revenue
Registration, Keeping of Books of Accounts
Issuance of Invoices and Receipts With Authority
Use of Cash Register Machines, POS Machines and Computerized Accounting System
Filing of Tax Returns and Payment of Taxes
Tax Audit and Third Party Information Verification Points
Tax Audit Programs, Audit Notices and Conduct Of Audits
Sources of Thirty Party Information Verification
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Administrative Remedies of Taxpayers
Effective Handling of Tax Audits
Judicial Remedies of Government in Taxation
March 21
Topic 7 (PM Technical Session):
Comprehensive Corporate Income Taxation
Dr. Ruperto P. Somera, Phd, CPA, DBA
Definition of Income Tax
Kinds of Income Tax
Requisites for Income to Be Taxable
Exclusions from Income
Tax on Corporation
Corporate Tax Rate
Rental Income
Branch Profit Remittances
Government-Owned or Controlled Corporation
Tax Treaty Relief Application
Educational Institutions
Income Tax Exemptions
Kinds of Income Tax Exemption
Express Income Tax Exemption
Emplied Income Tax Exemption
Constitutional Income Tax Exemptions
Organization, Corporation Exempt from Income Tax
Requirements for Exemption from Income Tax of Cemetery Company
Minimum Corporate Income Tax on Domestic Corporations
Revenue Regulation 12-2007
Minimum Corporate Income Tax (MCIT) on Domestic Corporations
Imposition of Improperly Accumulated Earnings Tax
Corporations Not Subject to IAET
Deductions from Gross Income
Revenue Regulation No. 16-2008
Revenue Regulation No. 2-2010
Determination of the Optional Standard Deduction for General Professional Partnerships (GPPS) and
Partners of GPPS
Business Expenses
Itemized Deduction
Guiding Principles
Cost of Goods Sold In Computing Gross Income
Revenue Regulations No. 10-2002
Reporting
Requisites for Deductability of Interest Expense
Interest
Taxes and Losses
Requisites for Deductibility (Rev. Reg. No. 12-77)
Net Operating Loss Carry Over (NOLCO)
Depreciation
Depletion
Research and Development Expenditures
Charitable and Other Contribution
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Items Not Deductible (Section 30)
Pension Plan
Requisites of a Reasonable Retirement Benefit Plan
Retirement Benefits, Pensions, Gratuities
Withholding Taxes
Person Required to Deduct & Withhold
Types of Withholding Taxes
Duties & Obligations of a Withholding Agent
Time of Withholding
Gross Compensation Income
R.A. 9504 Minimum Wage Tax Exemption Revenue Regulation No. 10-2008
Allowance of Personal Exemption For Individual Taxpayer
Requisites of Substituted Filing
Persons Not Qualified for Substituted Filing
Final Withholding Tax
Interest
Dividends
Expanded Withholding Tax
Persons Exempt From Creditable Withholding Tax
Income Payments Subject to Creditable Withholding Tax
Withholding Agent
Withholding Tax Rates
Revenue Regulations No. 2-2006: Mandatory Attachments of the Summary Alphalist of Withholding
Agents of Income Payments Subjected to Tax Withheld at Source (SAWT) to Tax Returns With
Claimed Tax Credits
Fringe Benefit Tax
March 21
Topic 8 (PM Technical Session): Taxpayer’s Rights and Remedies
Danilo Duncano, CPA – RDO 47 (Makati)
Strategies on Civil Remedies
Handling Tax Audit and Taxpayers’ Rights and Remedies
Statutory Basis of Assessment
Letters Of Authority (L.A.’S)
Priority Target In Taxpayers’ Audit
Industry Benchmarking
Pertinent Revenue Memoranda
Excluded from Audit and Investigation by the RDO’s
Power of the Commissioner to Obtain Information, etc.
Remedies During Audit
Guidelines on Revalidation of Letter of Authority
Informal Conference
Preliminary Assessment Notice
Formal Letter of Demand and Assessment Notice
Assessment of Income Tax
Formal Letter of Demand and Assessment Notice
Guidelines as to Finality of Assessments
Pertinent Memoranda and Revenue Regulations
Disputed Assessment
The Prescriptive Periods
Civil Remedies
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Remedies Available to the Taxpayer Under the Tax Code in Connection With the Collection of
Taxes
Remedies Available to the Government
Remedies for the Collection of Delinquent Taxes
Suspension of Running of Statute Of Limitations (Collection)
Authority of the Commissioner to Compromise, Abate and Refund or Credit Taxes
“Oplan Kandado”: Revenue Memorandum Order No. 3-2009
Tax Amnesty
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