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Tag: Let’s Talk Tax

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...

Let’s keep pace

“The scene of this world is changing. I can’t live in the past. Please help me to keep running because we’re moving fast…” The quote...

Is your company ready for tax reform?

Tax reform has been in the headlines lately. After almost two decades, we are about to see more concrete action towards the much-awaited comprehensive...

Understanding interest on intercompany foreign loans

Our fast-growing economy presents a wide array of opportunities for entrepreneurs. This is especially true with the unveiling of the “Dutertenomics” program by the...

The overlooked part: related party transactions

Time flies — in three months, we will bid 2017 goodbye. For us accountants, the end of the year means the start of busy...

Tax Reform for individuals: Fairer, but is it simpler?

Various portions of the Tax Code of 1997 will be deemed obsolete once the President approves the first package of the Tax Reform and...

How tax-healthy is your company?

I have been hearing interesting stories about how some taxpayers are too afraid of receiving tax assessment notices right at their doorsteps. A colleague of...

Handling your tax assessment: DIY or with a tax agent

It would not come as a surprise if many taxpayers receive tax assessments these days. If they are to stand a chance, it is...

Imposition of value-added tax on tax-free exchanges

Mergers and acquisitions have become popular business strategies for companies looking to expand into new markets or territories, to achieve economies of scale, to...

Like a basketball import, a bargain is not always a good...

Basketball-crazy Filipinos watched the Philippine Gilas team fall short during the recently-concluded 2017 FIBA Asia Championships in Lebanon. The all-Filipino line up fought with...