Why It’s Really Important to Put the Year “2020” than just “20”

This is really an important message that could save you lots of stress, time and money in the year 2020.

To minimize possible fraudulent transactions, when writing a date, particularly the year, you must put into practice writing “2020” instead of simply “20”. Why? Because any individual with a mind of a fraudster, can change a year “20” to any year by just adding “00” to “19” to it for his or her advantage. Example, a date January 1, 2020, which can be written as “1/1/20”, can be changed by a fraudster to 1/1/2019 by simply adding “19”.

With that, don’t write or accept documents with “20” as the year. Not to worry for a long time though, this will only happen in the year 2020.

Tax News: CTA Rejects BIR Appeal on Metro Rail Tax Assessment

THE Court of Tax Appeals (CTA) denied for lack of merit an appeal of the Bureau of Internal Revenue (BIR) seeking to overturn the cancellation of the P1.63-billion deficiency tax assessment against Metro Rail Transit Corp. (MRTC). Read more at BusinessWorld.

This means that the previous CTA decision, which canceled the tax liabilities of MRTC, remains in force despite filing of motion for reconsideration by the BIR.

Reminder: Inventory List Deadline

The above image is an inventory of our client, as we conduct the counting, in compliance with the Revenue Memorandum Circular No. 57-2015 (RMC No. 57-2015).

Lately, BIR has send letter to taxpayers regarding compliance with Inventory List submission. It’s a hit or miss letter aimed at no one. Some of our clients have receive that BIR letter even though they have just started their business, and others do not have any inventory at all. I think, the BIR is just making themselves more visible to taxpayers through those letters, which could help more compliance from taxpayers. Another possibility is, it could be a sign that BIR will be strictly implementing the said RMC, which non-compliance could trigger an LOA. Hence, Inventory List must not be taken for granted and must be submitted properly to avoid future problem.

This is due on January 30, 2020. More details of the RMC No. 57-2015 here: RMC No. 57-2015.

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Inventory List Submission Deadline

Tax Clearance Documentary Requirements

Sworn affidavit (annex A-1 for individual and Annex A-2 for non-individual taxpayer)
Photocopy of Certificate of Registration (COR) (BIR Form 2303)-certified true copy
Original copy of Delinquency Verification of No Tax Liability issued by the RDO/Collection Division having jurisdiction over the Head Office of the taxpayer not more than fifteen working days from the date of application. However, for taxpayers registered under the following district offices, the delinquency verification must be issued by the Regional Office-Collection Division:Revenue RegionRevenue District Office417A, 17B, 18, 19, 20, 21A, 22, 23A, 23B524, 25A, 25B, 26, 27629, 30, 31, 32,33,34728, 38, 39, 40, 41, 43A, 43B, 45, 46844, 47, 48, 49, 50, 51, 52, 53A, 53B954A, 54B, 55, 56, 57, 58, 59, 60, 61, 62, 63
Copy of the previous Tax Clearance issued, in case of renewal (original copy of the tax clearance if not yet expired and photocopy of the tax clearance if already expired).
Certification fee worth P 100.00 electronically filed and paid thru the eFPS using MC = Tax Code and MC200 = Alphanumeric Tax code(ATC). Attach BIR form 0605 and the eFPS bank confirmation receipt.
Two pieces of loose documentary stamps worth P 15.00 each (do not affix)
Letter request addressed to the Chief, Accounts Receivable Monitoring division and authorization letter.
Latest return filed (ex. 1601-C, 2550M, 1701) and/paid thru eFPS aside from payment for registration Fee.

Additional requirements if the taxpayer has an outstanding liability/ies, if applicable:
Copy of the Final Assessment Notice (FAN) and/or Final Decision on Disputed Assessment (FDDA) issued by the Commissioner or his duly designated representative;
2.Duly filed Notice of availment of Tax Amnesty Return (BIR Form No. 2116) and the corresponding Payment Form (BIR Form No. 0617) as proof of payment thereof, in case of availment of the Tax amnesty program (for First time Applicant);
Copy of the formal letter request and photocopy of application for Compromise Settlement or Application for Abatement or Cancellation of Tax Penalties and/or interest Under Revenue Regulations Nos. 13-2001 or 15-2006 (BIR form No. 2110) duly received by the concerned Revenue District Office;
Copy duly validated payment form (BIR 0605), official receipt issued by the Authorized Agent Bank (AAB) or Revenue Official Receipt (BIR Form 2524) issued by the Revenue Collection Officer, whichever is applicable, representing Payment Compromise/abatement offer;
Copy of the letter of protest, request for consideration and/or reinvestigation duly filed by the taxpayer with the concerned BIR office;
In case of installment payment, a copy of the approved letter request for installment payment;
Other documents as may be required by the concerned processing/approving office

Income Tax Return with Financial Statement
If verified with open tax cases (CMC-Collection Section), please submit the required returns to resolve the open case(s).

Letter must be in writing and contain the following information:
Name of the taxpayer
Telephone Number/Cellphone Number
Name of Procuring Government/Private Agency
Name of responsible Procuring Officer- telephone number/fax number, cellphone number

If applied/requested/claimed by representative:
Authorization letter indicating name of authorized representative
Photocopy of any valid ID of taxpayer & ID of authorized representative

If you need help, feel free to contact us.

De Minimis Benefits

As an employer, you might give benefits to your employees apart from their regular salaries and wages. These are called fringe benefits. However, there are fringe benefits that are relatively small in value and are not taxable. These are called “de minimis benefits.”  According to BIR Revenue Regulations No. 3-1998(C), the term “de minimis benefits” refers to facilities or privileges furnished or offered by an employer to his employees that are of relatively small value and are offered or furnished by the employer merely as a means of promoting the health, goodwill, contentment, or efficiency of his employees. (dacpa.ph)

Continue reading “De Minimis Benefits”


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