Tax Notes

[dhonz]

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Individual taxpayers may claim up to 40% deductions from gross sales/receipts without any Official Receipts (OR) to present.

Implementing Regulations on OPTIONAL STANDARD DEDUCTION (OSD):

BIR issued RR16-2008 to implement the provisions of RA 9504 pertaining to Optional Standard Deduction (OSD). read full txt... ftp://ftp.bir.gov.ph/webadmin1/pdf/4...%2016-2008.pdf


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For Affordable Accounting & Bookkeeping Services, call or txt Jalyn 0922-2228612
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[dhonz]

BIR extends deadline for submission of BIR Form No. 1604-CF.

The Bureau of Internal Revenue (BIR) thru Revenue Memorandum Circular (RMC) No. 4-2009 extended the deadline for the filing of the Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes (BIR Form No.1604-CF) together with its attachment, the Alphabetical List (Alphalists) of Employees, to February 27, 2009.

full txt... ftp://ftp.bir.gov.ph/webadmin1/pdf/pr01feb0209.pdf


__________________________________________________ ___________________________________
For Affordable Accounting & Bookkeeping Services, call or txt Jalyn 0922-2228612
__________________________________________________ ___________________________________


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[vincedin]

2010 Income Tax Return (ITR) filing reminders:

1. Optional Standard Deduction (OSD) or itemized deductions . For taxable year 2009, taxpayers have the option to claim deductions using the OSD or itemized deductions. The option must be signified by checking the appropriate box in their ITR. However, in Revenue Memorandum Circular No. 16-2010, the BIR required that type of deduction adopted in their first quarter ITR should be the same as in their final ITR for taxable year 2009.

Any taxpayer who fails to indicate his choice in his first quarterly ITR shall be considered as having availed of the itemized deductions option for the taxable year.

2. Filing of ITR and financial statements (FS) – Authorized Agent Banks (AABs) are mandated to accept photocopies, electronic/computer-generated BIR forms/returns in lieu of the officially printed forms provided they are originally filled up and signed by the taxpayer or duly authorized representative.

ITRs may be filed with an AAB outside the jurisdiction of the RDO where the taxpayer is registered from April 5 up to April 15, 2010. No penalty for wrong venue filing shall be imposed for the out-of-district filing of tax return.

Only three copies of the returns will be stamped received by the AAB. The financial statements to the ITR shall be stamped received only on the page of the audit certificate, the balance sheet, and the income statement.
Firms registered with PEZA, BOI, and other incentive-giving agencies are now required to file their ITRs and pay their tax due thereon electronically pursuant to RR 01-2010 which took effect on February 07, 2010.

3. Submission of “statement of management responsibility” – A statement of management responsibility should accompany the ITR to be filed by the taxpayers. This should be duly signed by the individual taxpayer, president, or managing partner, and the CEO/CFO or their equivalent, or any officer performing similar functions.

4. Submission of AAB/BIR-stamped FS with the SEC. Per agreement with the BIR, the SEC shall require submission of only one original and 2 photocopies of the BIR-stamped audited FS with external auditor’s certification, balance sheet and income statement. For companies whose fiscal year ends on December 31, 2009, the BIR-stamped audited FS should be filed in accordance with the following schedule:

Last numerical digit of
SEC registration/license...............Filing Dates

1, 2, 3.....................................April 19 - 23
4, 5.........................................April 26 - 29
6, 7, 8......................................May 3 – 7
9, 0 .........................................May 11 - 14

[C.P.A.]

Billionaire Caught in His Own Real Estate Transactions

MR. MACARIO LIM GAW, JR. deliberately misclassified the sale of the 10 lots as a sale of "capital
assets" when these are undoubtedly sales of ordinary assets and paid only the 6%
Capital Gains Tax (CGT) amounting to P9,111,801.69 (2007) and P418,746,021.11
(200 to evade the payment of the 32% Income Tax and the 12% VAT due to sale
of lands classified as ordinary assets.

read full txt... ftp://ftp.bir.gov.ph/webadmin1/pdf/pr101aug2610.pdf

[C.P.A.]

BIR Files “First” Tax Evasion Charges against a Security
and Investigation Agency

Amidst mounting complaints against security agencies coming from their own security
guards for alleged tax violations particularly non-remittance of withholding taxes, the
Bureau of Internal Revenue (BIR) today filed with the Department of Justice charges against
a security and investigation agency for various acts committed in 2007, 2008 and 2009
constituting violations of the Tax Code to wit: willful attempt to evade or defeat taxes;
willful failure to supply correct and accurate information; and willful failure to file income tax
returns, VAT returns, expanded withholding tax returns, annual information return of
income taxes withheld on compensation and final withholding taxes, and annual information
return of creditable income taxes withheld on income payments exempt from withholding.
Charged under the BIR’s Run After Tax Evaders (RATE) program were ICON SECURITY AND
INVESTIGATION AGENCY, INC. (ICON) and its responsible corporate officers - Larry R.
Bayona (Chairman/President), Lorena Z. Canlas (Treasurer), and Jaison Z. Zapata
(Corporate Secretary). Icon is a domestic corporation with registered business address at
No. 77 Alabu Realty Building, Corregidor and David Sts., Quezon City, but per recent
information, it now holds office at the Ground Floor, Holiday Plaza Building, Libertad St.,
Pasay City.
Investigation conducted revealed that Icon reported a Service Fee Income of only
P270,000.00 in 2007. However, Icon indicated a Service Fee Income in 2007 of
P2,173,500.00 in its 2008 Comparative Financial Statement. The same document shows
that Icon earned Service Fee Income amounting to P26,730,220.01 in 2008. Despite the
enormous increase in its earnings, BIR records disclosed that Icon did not file any return in
the same year. Digging further, BIR investigators found out that Icon reported at least
twelve (12) clients in its 2009 and 2010 Monthly Disposition Reports filed with the PNP
SAGSD and in spite of that, it likewise failed to file any return with the BIR for the said
taxable years.
Initial assessment based on available records and third party information pegged the tax
liability of Icon at P7,824,183.84.
The case against Icon and its responsible corporate officers is the first case against a
security agency and the eighth (8th) filed under the RATE program of the BIR under the
leadership of Commissioner Kim S. Jacinto-Henares. It is likewise the first RATE case of
Revenue Region No. 7, Quezon City. (reytdlc)

[vincedin]

Revenue Memorandum Order No. 36-2011 amends certain provisions of RMO No. 26-2011 re: guidelines in the tax treatment of separation benefits received by officials and employees on account of their separation from employment due to death, sickness or other physical disability and the issuance of Certificate of Tax Exemption from Income Tax and from the Withholding Tax.

more ftp://ftp.bir.gov.ph/webadmin1/pdf/6...%2036-2011.pdf