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Tag: Let’s Talk Tax

The rise of POGOs: A new landscape in e-casinos and sports...

With the increasing popularity of e-gaming, foreign online casino operators have expressed keen interest in expanding their business in the Philippines. In fact, the Philippine Amusement and Gaming Corporation (PAGCOR) expects Philippine Offshore Gaming Operators (POGOs) to account for additional revenue of P6 billion this year.

BIR letter notices: Not enough for a tax assessment

Imagine driving your car on a clear sunny afternoon, when suddenly, you are blocked and signaled to pull over by an apparent traffic enforcer in civilian clothing. To your surprise, he asks for your driver’s license and hands you a ticket for an alleged violation. Not recognizing his authority as a traffic enforcer, you refuse to give your license and question his right to apprehend you. However, he insists. Fortunately, this situation is not likely to happen; but if it does, you can expect it to be unpleasant.

The irrevocability rule and income tax credits carried over to the...

TWO weeks ago, I was given the opportunity to facilitate a seminar on handling Bureau of Internal Revenue (BIR) tax assessments. During the open forum, a participant shared her experience with the BIR’s “Project 2307” in which taxpayers are issued a letter to authorize BIR examiners to check the validity and completeness of creditable withholding taxes claimed in the taxpayers’ filed income tax returns (ITRs). Taxpayers normally targeted by this project are those who have resulting tax overpayment or excess creditable taxes on their ITRs. As the discussion shifted to excess creditable tax, another participant raised a question about the irrevocability rule, specifically the option ticked by the taxpayer on the annual income tax return about the preferred treatment for overpaid or excess creditable taxes.

Proposed amendments to the Corporation Code

THE buzz on the amendments to the tax laws has not wavered since last year. However, another important proposed change to our laws which deserves to be highlighted is the amendment of the Corporation Code. Senate Bill No. 1280 (SB 1280) “An Act Amending Batas Pambansa Blg. 68 or the Corporation Code of the Philippines,” has hurdled third reading at the Senate.

TRAIN TRAIN go away?

It always fascinates me whenever I hear my one-and-a-half-year-old daughter sings the famous children’s song “Rain, rain, go away, come again another day...” While her singing is an enchantment to my ears, it’s also sad because she cannot play outside because of the rain.

Tax reform: Single tax rate on investment income?

THE 50:30:20 rule is the most popular rule on how your income should be spent. According to various studies, you should reserve 50% of your income for essentials like rent, food and transportation, 30% for discretionary spending, and at least 20% for savings.

No derailing TRAIN as Package 2 moves forward

Taxation plays a vital role in the economic growth of a country. Taxes, apart from raising revenue to finance government expenditures, can influence the patterns of consumption, production and distribution. Taxes, therefore, affect the economy in various ways.

Taxpayer, are you surprised?

Plot 1: NEJ, the protagonist, heard unknown voices and odd footsteps. Convinced that her family’s house is haunted, she went to find a local priest, but failed. More antagonistic events ensued, and then the plot twist came: Grace and her two children are the ghosts, and the voices and odd footsteps they’ve been hearing are from living people. They only realized that they’ve been dead when they were being cast away by a séance hired by the new owners of the house.

What’s next after FDDA?

All things come to an end. The question is: when? As for everything else, we also seek closure in tax assessments. The decision to end the tax assessment sooner or later depends on us.

Withdrawing from the bank account of a deceased person

Matters relating to death are usually not a good topic to discuss. However, what is worse is not knowing what to do when one is faced with death-related situations, such as when the family of the deceased needs to pay the hospital bills or funeral expenses, or when funds are needed to transport or repatriate the deceased.

AMLA guidelines for lawyers, accountants, and certain service providers

A few years ago, the Philippine financial industry was under the media spotlight when a massive amount of stolen money entered the country and was then spent in large casinos. It cannot be denied that this incident had a negative impact on the Philippine banking system, as well as on the credibility of the implementation of anti-money laundering laws.

Don’t miss the de minimis

It has been more than six months since Republic Act (RA) No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, was passed. One of the major banners of the TRAIN law is to increase employee take-home pay. While the law has taken effect, however, many are of the view that it is anti-poor.

To withhold or not to withhold: That is the question

Congratulations! You are now on top! Welcome to the club!

Are dividends and interest subject to local business tax?

As the debate on adopting federalism in the Philippines heats up, the powers and limitations of local government units (LGUs) to tax is coming to the fore.

Benefiting through giving

A week ago, I was browsing through my social media feed and saw a post about kids crying and having fits on their first day at school. For a moment, I was suddenly reminded of how time flew by so quickly, so much that I almost failed to notice that we are already halfway through the year and that the school year has officially started. As I kept on browsing, I came across more posts about the school opening -- pictures of crowded or makeshift classrooms, rants on the insufficiency or absence of educational supplies and facilities -- the list goes on.

Doing business in the Philippines made easier

The World Bank’s Doing Business 2018 report reveals that the Philippines has slipped when it comes to the ease of doing business to 113th place from 99th place last year. 190 countries were surveyed in the report. Perhaps in response to this development, the government recently passed Republic Act (RA) No. 11032 or “The Ease of Doing Business and Efficient Government Service Delivery Act of 2018.” This new law, which aims to reduce processing time, cut bureaucratic red tape, and eliminate corrupt practices, enhances the decade-old Anti-Red Tape Act of 2007, which focused on streamlining and improving the current systems and procedures of government services.

Revisiting irrevocability rules on income tax

Tax filing season has just ended for taxpayers who use the calendar year as their accounting period. Taxpayers whose total income tax due exceeded...

Prima facie correctness of a tax assessment: When does it not...

Tax assessments by the Bureau of Internal Revenue (BIR) for alleged tax deficiencies are, in most cases, presumed correct; the taxpayer always bears the...

Refunding input VAT upon dissolution or change of VAT status

The legal provisions on refunding input value-added tax (VAT) upon dissolution of the company or upon the change of VAT status was unaffected by...

On TRAIN 2 — Are we excited to board?

It has been months since the Tax Reform for Acceleration and Inclusion (TRAIN) 1 took effect, on Jan. 1. There were mixed sentiments from...

BIR revised guidelines and procedures in registering new businesses

People today are more geared towards being entrepreneurs. With the availability and accessibility of different online platforms for business opportunities, people can have their...

The 25% surcharge for amended tax returns

Recently, the Bureau of Internal Revenue issued Revenue Memorandum Circular (RMC) No. 21-2018. It circularizes the imposition of 25% surcharge, in addition to the...

The 8% tax for self-employed individuals

Now that the tax filing deadline has passed, many taxpayers can breathe a sigh of relief. Taxpayers have gone through one of the most...

Taxpayer’s checklist for boarding the TRAIN

The much-awaited promise to the Filipino taxpayers and one of the government’s crown jewels, the Tax Reform for Acceleration and Inclusion (TRAIN), took effect...

Amendments on compensation tax

My employed friend recently requested me to compute her annual income tax due for the prior year 2017. Her gross compensation from her lone...

Withholding taxes made easier?

We are about to enter the fourth month of implementation of the TRAIN law and, to this day, taxpayers still have questions about withholding...

Status quo on VAT zero-rating of sales to PEZA entities

The Philippine Economic Zone Authority (PEZA) director-general announced that sales of goods and services to PEZA-registered entities shall continue to be subject to 0%...

Tax amnesty to widen the tax net

The term “tax net” refers to “the mechanism for ensuring that people and companies pay their taxes.” A wider tax net means better revenue...

‘Tap on a keyboard and make a living’

According to the October 2000 Awake! magazine article, “Is It Wise to Invest in the Stock Market?,” “the apparent ease of trading stocks online...

Revenue Regulations No. 08-2018 for individual taxpayers

The passage of Package 1 of the Tax Reform for Acceleration and Inclusion (TRAIN) law is considered by many a welcome change, particularly to...

Dealing with tax filing advisories

Since Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law took effect on Jan. 1, the implementation of certain...

Restoration of the Notice of Informal Conference

The start of the year has been good for taxpayers who are under investigation, as new tax rules introduced some changes that will benefit...

Taxpayers’ prayer on Philippine tax reforms

Dear Heavenly Father, We praise You, we glorify You, and we thank You for the countless blessings and guidance that You continuously provide us.  In...

Wish list for tax assessment

Everyone has a wish list. The Merriam-Webster Dictionary defines “wish list” as “a list of desired but often realistically unobtainable items.” I have my...

Hoping for the best on VAT refunds under TRAIN

One of the concerns of corporate taxpayers is how to optimize their assets, including input value-added tax (VAT), for day-to-day operations. When the input...

TRAIN upon death

For individual taxpayers, the offshoot of the approval (and line item veto) of Republic Act No. 10963 or the Tax Reform for Acceleration and...

A promising 2018 with VAT TRAIN

New Year, perhaps, is the most celebrated occasion around the globe. People stay awake to greet midnight, most often, with fireworks and loud noises...

Welcoming 2018 with TRAIN

THE TRAIN stayed on track and reached its destination in time to take effect yesterday, Jan. 1, as targeted.  Republic Act (RA) 10963, otherwise known...

Fewer tax returns to file under TRAIN

Giving gifts on special occasions like Christmas, Valentine’s, birthdays, etc., is a tradition.  Most of us have sent or received lots of Christmas gifts....

The people’s clamor — A loss for a loss

For a long time now, recovering from a loss as massive as being denied of their right to claim a refund for the creditable...

New Year reminders

The holidays are upon us! Homes, offices, shopping centers, and places of worship are adorned with sparkling decorations. Gifts for family, friends, and colleagues...

Year-ender list: Things to keep in mind

It’s that time of the year again —twenty-six days before Christmas. Every year, I look forward to the holiday season — when we have to...

Unintentional falsity not a false return

In one of the seminars I attended, a participant asked about the seemingly unbridled right of the Bureau of Internal Revenue (BIR) to assess...

Improving the quality of tax assessments

Recently, I had a meeting with a client regarding pending tax assessments. He was flying in from his office in another Asian country and...

To CAS or not to CAS?

Can you imagine an Information Technology (IT) company using manual books of account? The Philippines is seen as a hub of global services. In recent...