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Day 1 – November 26
*Note that all delegates may attend both plenary sessions. A book is included as a reference for the Tax
Incentives lecture in Day 1.
Plenary Session 1: Problems, Issues, and Solutions in Tax Audit and Investigations
Dr. Ruperto P. Somera
November 26, 8:00-12:00 NN
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Statutory Basis of Assessment
Priority Target in Taxpayers’ Audit
Industry Benchmarking
Revenue Memorandum No. 3-2010
Revenue Memorandum Order No. 22-2011
Exclusions from Audit And Investigation By The Rdo’s
Requirements of LA
Tax Verification Notices
Revenue Memorandum Circular No. 62-2010
Power of the Commissioner to Obtain Information
Revenue Regulation
No. 10-2010
Revenue Merandum Order No. 45-2010
Remedies During Audit
Revenue Memorandum Order No. 38-88
Guidelines on Revalidation of Letter of Authority
Notice of Informal Conference
Preliminary Assessment Notice
Revenue Regulations No. 12-99
Preliminary Assessment Notice (Pan)
Formal Letter of Demand And Assessment Notice
Assessment of Income Tax
Authority to Make Assessments
Effect of Assessments
Revenue Regulations No. 12-99
Formal Letter of Demand And Assessment Notice
Summary of Assessment Cycle
Guidelines As to Finality Of Assessments
Revenue Regulations No. 12-99
Disputed Assessment
Effect of Failure to Appeal on Time
Definition and Nature of Surcharge
Definition of Delinquency
Effect of Partial Protest
Requisites for a Valid Waiver Under Rmo 20-90
Civil Remedies
Remedies Available to the Taxpayer Under the Tax Code in Connection with the
Collection of Taxes
Remedies Available to the Government
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Remedies for the Collection of Delinquent Taxes
Definition of Distraint
Definition of Levy (on Real Property)
How Levy is Effected
Definition of Forfeiture
Definition of Tax Alien
Distraint of Personal Property
Levy on Real Property
Garnishment
Suspension of Running of Statute of Limitations (Collection)
Authority of the Commissioner to Compromise, Abate and Refund or Credit
Taxes
Minimum Compromise Settlement
Tax Credit or Refund of Taxes
Forfeiture Of Cash Refund
Power of the Commissioner to Make Assessments
Failure to Submit Required Returns, Statements, Reports and Other Documents
Amendment of Return
Fraudulent Return
Failure to File Certain Information Returns
Exceptions as to Period of Limitation of Assessment and Collection of Taxes
Oplan Kandado
Power of the Commissioner to Suspend the Business Operations of a Taxpayer
Tax Amnesty
Plenary Session 2: Tax Incentives
Mr. Danilo A. Duncano
November 26, 2012, 1:00 – 5:00 PM
1.
Anti-Red Tape Act of 2007
B. Tax Differentials and Tax Incentives (Special Laws and Relevant BIR Issuances)
Cooperatives
Mircrofinance services of NGOs
Barangay Micro Business Enterprise
Senior Citizens
Magna Carta for Persons with Disabilities
Jewelry Industry
Tax Incentives under the Labor Code
PERA
Adopting a Public School
Philippine Normal University
Philippine Overseas Shipping
PAGCOR
Tourism Industry
Bases Conversion and Development Act of 1992 (BCDA)
Special Economic Zones (Freeport Zones)
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Cagayan and Zamboanga Special Economic Zone
Aurora Special Economic Zone
Board of Investments Related Laws/Issuances
Philippine Deposit Insurance Corporation
National Commission for Culture and Arts
Home Development Mutual Fund Law of 2009
Socialized Housing
Real Estate Investment Trust (REIT)
Special Purpose Vehicle (SPV)
Power Sector Assets and Management Corporation (PSALM)
2. Relevant Tax Code Provisions
Marginal Income Earners/Employees/Self-Employment
Educational Institutions
40% OSD
VAT Zero Rating & Exemptions
3.
a. Recap of Pinoytax eClinic Wellness Strategy
b. Recap of Main Pinoytax References
I kNOw TAX?! Exemptions, Exclusions and Reductions Handbook
Pinoytax website - kNOw TAX?! Exemptions, Exclusions and Reductions eBook
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Closure
Day 2 – November 27
*Note that a delegate may attend only 1 morning and 1 afternoon breakout session of their choice.
Break-out Session 1 (Morning): Managing Tax Risk
Dr. Ruperto P. Somera
November 27, 2012, 8:00 – 12:00 NN
Introduction to Risk Management
Tax Risk Problems
Solutions to Tax Risk Problems
Managing Tax Risks
Preventive Measures in Tax Risk Problems
Control Year End Tax Risk Strategies
Managing Tax Risk in Tax Compliance
Basic Tax Compliance
Tax Management in the Filing of Returns
Withholding Tax Requirements
VAT Requirements
Tax Risks in Tax Audit or Tax Investigations
Managing Tax Rights in the Collection of Delinquent Accounts
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Break-out Session 2 (Morning): Updates on Taxpayers’ Rights and Remedies
Atty. Victorino C. Mamalateo
November 27, 2012, 8:00 – 12:00 NN
What a Taxpayer Need to Know About the BIR Organizational Structure and its Audit
Jurisdiction
Understanding the BIR Tax Audit Program
Relevant Information About Audit Notices to Examine Books
What the BIR Looks for in an Audit & Common Pitfalls of Taxpayers
Understanding BIR's Bases of Assessment
Assessment Processes
BIR's Collection Enforcement
Remedies of the Taxpayer
Recent Developments
Break-out Session 3 (Morning): Tax Planning, Strategies, and Techniques for Yearend Tax Closing
Atty. Froilyn D. Pagayatan
November 27, 2012, 8:00 – 12:00 NN
I. Year End Tax Planning and Strategies
1) Objectives of Year – End Tax Planning
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General Approach and Strategies in Tax Planning
Specific Year End Tax Planning Options And Strategies
2) Avoiding Improperly Accumulated Earnings Tax
3) Relief from Minimum Corporate Income Tax
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Minimum Income Tax on Domestic Corporations
Minimum Corporate Income Tax (MCIT) on Resident Foreign Corporations
4) Year End Strategies on Net Operating Loss Carry Over
5) Optimized Tax Deductions
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Revenue Regulations
Persons Covered
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Determination of the Amount of Optional Standard Deductions for Individuals
Determination of the Amount of Optional Standard Deduction for Corporations
Determination of the Optional Standard Deduction for General Professional
Partnership (GPPs) and Partners of GPPs
Other Implications of the Optional Standard Deduction
Itemized Deduction
Maximized Deductible Expenses Allocation of Expenses
Revenue Related Transactions
Method of Recording
Requirements for Deductability
Reporting
Requisites for Deductability of Interest Expense
Taxes
Losses
Bad Debts
Depreciation
Research and Development Expenditures
Charitable and Other Contributions
Retirement Benefit/Separation Pay
6) Tax Strategies of Fringe Benefits
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Special Treatment of Fringe Benefit
Computation of Grossed-Up Monetary Value
7) Withholding Tax Strategies
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Types of Withholding Taxes
Tax Due = Tax Withheld
Withholding Tax Returns
Pertinent Revenue Regulations and Memoranda
8) Value Added Tax Strategies
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Requirements on Input Tax
Substantiation Requirements on Input Tax
Allocation of Input Taxes Between VAT Taxable and VAT Non-Taxable Operations
Procedures for Claiming Refunds or Tax Credits
9) Compliance in Bookeeping Rules and Regulations
10) Strategies on Civil Remedies
11) Handling Tax Audit and Taxpayers’ Rights and Remedies
11.1) Statutory Basis of Assessment
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Letters of Authority (L.A.’S)
Priority Target in Taxpayers’ Audit
Industry Benchmarking
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Pertinent Revenue Memoranda
Excluded from Audit and Investigation by the RDO’s
Power of the Commissioner to Obtain Information, Etc.
11. 2) Remedies During Audit
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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
11. 3) 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
11. 4) Tax Amnesty
Break-out Session 1 (Afternoon): Tax Exclusions and Reductions
Mr. Danilo Duncano
November 27, 2012, 1:00 – 5:00 PM
*I. Exemptions and Exclusions from Income Tax
A. Marginal Income
B. Earners/Employees/Self-Employed Individuals
C. NGOs and GOCCs
D. Educational Institutions
E. Tax exempt sale of real properties
F. Tax exempt Exchange of Properties
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G. Improperly accumulated earnings tax vs. Dividend Tax
H. 40% OSD
II. Transactions Exempt from Estate and Donor’s Tax
III. Tax exempt acquisitions and transmissions
Compliance requirements
IV. VAT Zero Rating and VAT Exemptions
V. Transactions Exempt from Other Percentage Taxes, Excise Taxes and DST
Compliance requirements and audit rulings
Break-out Session 2 (Afternoon): The Latest on Expanded Withholding Taxes and
Allowable Deductions
Mr. Enrico Pizarro
November 27, 2012, 1:00 – 5:00 PM
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
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Senior Citizen Discount
Standard Input Tax
Non-Deductible Expenses
Expenses – Remedies If Disallowed
Net Operating Loss Carry-Over (NOLCO)
Optional Standard Deduction (OSD)
Latest Issuances
Break-out Session 3 (Afternoon): Estate Planning and Wealth Management in
Relation to Taxation
Dr. Ruperto P. Somera
November 27, 2012, 1:00 – 5:00 PM
The Importance of Estate Planning
Types of Assets and Their Value
Transfer of Properties of an Individual
Estate Taxation
Objectives of Estate Planning
Is it a Need?
Determining Taxable Net Estate
Composition of Gross Estate
Estates Classification
Deductions Allowed to the Estate
Considerations to Determine Whether Transfer was in Contemplation of Death
Judicial Expenses
Attachments to Estate Tax Return
Penalties
Devices of Estate Planning
Consequences of a Person Dies without a Will
Trusts
The Importance of Life Insurance
Insurance Exclusions from the Gross Estate
Donations
Computation on Taxable Gifts
Allowable Deductions from Gross Gifts
Tax-free Reorganizations
Exchange of Real Property to Shares of Stock
Wealth Management
***NOTHING FOLLOWS***