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Corporate income tax cut to 30% to lift business, generate more jobs


[ Manila Bulletin Online ] December 1, 2008

By EDU LOPEZ


Socio-economic Planning Secretary Ralph Recto is confident that the reduction of corporate income tax from 35 percent to 30 percent next year would pave the way for more business and job opportunities despite the global financial crisis.


"Lowering corporate income tax will help the private sector retained their employees. That makes us more competitive in the long term for more businesses to invest in the country," said Recto.


Recto, concurrently National Economic and Development Authority Director General, urged the private sector to consider business expansion as a result of reduced corporate income tax. The government is identifying investments and jobs that are at risk and putting in place the necessary contingency measures.


NEDA’s National Planning Policy Staff director Dennis Arroyo identified lower corporate income tax among the mitigating factors against the damage of the global economic slump in 2009.


Income tax exemption of minimum wage earners, declining oil prices, the 20 percent increase in infrastructure spending, robust overseas Filipino workers money inflows and weaker peso that boosts consumption spending could also propel economic growth next year.


NEDA expects the country’s gross domestic product (GDP) would grow between 3.7 to 4.7 percent in 2009 from this year’s projected 4.6 percent growth due to the slowdown in the services sector.


The industry sector in the third quarter of 2008 outperformed the services for the first time since the fourth quarter of 1997 on the back of the robust growth of public construction and sustained demand for real estate by the OFWs and business process outsourcing (BPO) sectors that both helped push total construction.


Arroyo said the global financial crisis, the export crunch and the apparently higher interest rates are affecting the fourth-quarter economic growth.


The Development Budget Coordination Committee’s target for export growth has been revised to one to three percent in 2009 from a high of seven percent.


"It’s a big slowdown due to the global recession in the United States, European countries and even China which contributed to the slower growth rate for exports next year," Arroyo said. BPO and tourism would be the main drivers of the service export sector’s growth in 2009.

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Esquivias takes his Oath of Office as BIR Commissioner

October 29, 2008


Former revenuer Sixto S. Esquivias, IV, took his Oath of Office today as Commissioner of the Bureau of Internal Revenue (BIR) before Finance Secretary Margarito B. Teves in simple rites held at the BIR National Office in Diliman, Quezon City.


Commissioner Esquiviaswas appointed by President Gloria Macapagal-Arroyo to address the collection shortfall incurred this year. He replaced outgoing Commissioner Lilian B. Hefti after she resigned from office early this month for health reasons.


Commissioner Esquivias will assume office officially starting November 3, 2008.


Esquivias, 52, a CPA-Lawyer, is the fourth revenuer who rose from the ranks to be installed as Commissioner, the first three being Commissioner Misael P. Vera (1965-1975), Commissioner Beethoven L. Rualo (1998-2000), and Commissioner Lilian B. Hefti (2007-2008).


The new BIR Commissioner is married to Corazon Angeles with whom he has three (3) children, namely: Julius, Luis and Ma. Carmela. Esquivias, a family man, received his elementary and secondary education at the University of Santo Tomas (UST). He attained his degree in BSC Accounting at the Far Eastern University (FEU) and earned his Bachelor of Laws degree at the Ateneo de Manila University (ADMU) where he was a Dean’s Lister. He became a professor in taxation at the University of the Philippines (UP) and Manila Law School and later assumed the position of National Treasurer at the Integrated Bar of the Philippines (IBP).


In 1977, Esquivias entered BIR as a field examiner. He rose from the ranks through the years and served in progressively higher positions, the last of which was as Deputy Commissioner for Legal and Inspection Group in 1998. While at the Bureau, he had a hand in the passage of Republic Act 8424, otherwise known as the Comprehensive Tax Reform Act of 1997, as well as the Expanded Value-Added Tax Act of 2005. After 23 years in service, he retired in 2000 having already reached the highest point of his career at the BIR as Deputy Commissioner.


Since he left the BIR up until he was appointed Commissioner of Internal Revenue, Esquivias was managing partner of Esquivias, Cruz, Condo and Yabut Law Firm. He also served as consultant to Sen. Juan Ponce Enrile and former Sen. Ralph Recto on tax reform bills.


Esquivias was received with warm welcome by many officials and employees of the Bureau who expressed gladness for his return and wished him well.


Many believe and are confident that he can intensify the Bureau’s collection efforts and attain the revenue target of P845B this year, being an experienced and knowledgeable taxman.


Pls. refer to:

REYMARIE T. DE LA CRUZ

Chief, Taxpayer Information & Education Division

924-32-45

GMA Signs into Law Bill Expanding the Court of Tax Appeals

Posted: June 12, 2008
By Jay B. Rempillo

President Gloria Macapagal Arroyo this afternoon signed into law RA 9503 which expanded the organizational structure of the Court of Tax Appeals (CTA) through the creation of a third division of three CTA Justices at the En Banc Session Hall, New Building, Supreme Court, Manila.

Chief Justice Reynato S. Puno, Senate President Manuel B. Villar, Jr., House Speaker Prospero C. Nograles, CTA Presiding Justice Ernesto D. Acosta and the CTA Associate Justices, and the legislators who authored the bill were present to witness the event.

Under RA 9503 (An Act Enlarging the Organizational Structure of the Court of Tax Appeals, Amending for the Purpose Certain Sections of the Law Creating the Court of Tax Appeals, and for Other Purposes), the CTA may now sit en banc or in three Divisions, each consisting of three Justices.

“Five Justices shall constitute a quorum for sessions en banc and two Justices for sessions of a Division: Provided, That when the required quorum cannot be constituted due to any vacancy, disqualification, inhibition, disability, or any other lawful cause, the Presiding Justice shall designate any Justice of other Divisions of the Court to sit temporarily therein,” RA 9503 provides.

Established in 1954 pursuant to RA 1125, the CTA’s membership consisted only of a Presiding Justice and two Associate Justices, each of whom were appointed by the President. RA 1125 was subsequently amended by RA 9282 under which the CTA was made to sit en banc and in two divisions of three justices each.

At present, the members of the CTA are Presiding Justice Acosta and Associate Justices Juanito C. CastaƱeda, Jr., Lovell R. Bautista, Erlinda P. Uy, Caesar A. Casanova, and Olga Palanca-Enriquez. Presiding Justice Acosta chairs the 1st Division with Justices Bautista and Casanova as members, while Justice CastaƱeda chairs the 2nd Division with Justices Uy and Palanca-Enriquez as members.

Under the new RA, the CTA will be given a budget of PhP20M “necessary to carry out the provisions of this Act” to be taken from whatever source available in the National Treasury.

President Gloria Macapagal Arroyo (center) signs into law RA 9503 at the Supreme Court Session Hall. The law enlarged the Court of Tax Appeals’ membership from six to nine Justices. The CTA may now sit en banc or in three divisions with three Justices each. Witnessing the signing are (from left)Senator Edgardo J. Angara, Executive Secretary Eduardo R. Ermita, House Speaker Prospero C. Nograles, Vice President Noli L. De Castro, Senate President Manuel B. Villar, Chief Justice Reynato S. Puno, House Representatives Edcel C. Lagman and Ma. Amelita C. Villarosa, and CTA Presiding Justice Ernesto D. Acosta. (Caption by Bryan Dennis G. Tiojanco; Photo by Francisco S. Gutierrez.)

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[ source : www.supremcourt.gov.ph ]


BIR REGULATIONS and ISSUANCES on REAL ESTATE TRANSACTIONS





Revenue Memorandum Order No. 18-2009

[ June 3, 2009 ]


Circularizes the order dispensing the necessity of securing a ruling from the BIR as a requisite for the issuance of CAR/TCL on the conveyance of land and common areas by the real estate developer to the Condominium Corporation organized in accordance with the provisions of RA No. 4726 for the purpose of holding title to and managing and maintaining the land and the common areas for the benefit of the condominium unit owners, and prescribes the policies and guidelines to be observed in the issuance of CAR/TCL in respect thereto


Revenue Regulations No. 5-2009


Reverts the venue for the filing of returns and payment of Capital Gains Tax, Creditable Withholding Tax and Documentary Stamp Tax due on sale, transfer or exchange of real property of large taxpayers to the place where the property is located
(published in Manila Bulletin on May 16, 2009)


Revenue Memorandum Circular No. 58-2008


Clarifies the time within which to reckon the redemption period on the foreclosed asset and the period within which to pay Capital Gains Tax or Creditable Withholding Tax and Documentary Stamp Tax on the foreclosure of real estate mortgage by those governed by the General Banking Law of 2000 (Republic Act No. 8791), as well as the venue for the payment of these taxes. [ August 15, 2008 ]


Revenue Regulations No. 4-2008


Amends the venue for the payment of Capital Gains Tax, CreditableWithholding Tax and Documentary Stamp Taxes due on onerous transfers of real properties owned by taxpayers classified as large taxpayers


Revenue Memorandum Circular No. 72-2007


Circularizes the full text of Administrative Order No. 186 directing the City Assessor, Municipal Assessor and Provincial Assessor to annotate in all Tax Declarations the serial number of the CAR issued by the BIR


Revenue Memorandum Circular No. 76-2007


Prescribes the additional mandatory documentary requirements for one-time transactions involving transfers of real property


Revenue Memorandum Circular No. 27-2006


Publishes the full text of Executive Order No. 525 issued by the President of the Philippines entitled "Creating a Special Task Force to Investigate Irregularities Committed in Relation to the Payment of Taxes in Transfers of Titles of Real Properties and For Other Purposes."

Revenue Regulations No. 17-2003


Amends further pertinent provisions of RR Nos. 2-98, 8-98 and 13-99, as amended, by providing for additional transactions subject to Creditable Withholding Tax and re-establishing the policy that the Capital Gains Tax on the sale, exchange or other disposition of real property classified as capital assets shall be collected as a Final Withholding Tax

(published in Manila Bulletin on May 8, 2003)

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KNOWING YOUR BIR REGULATIONS AND ISSUANCES

Revenue Regulations (RRs)
are issuances signed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes

Revenue Memorandum Orders (RMOs) are issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.

Revenue Memorandum Rulings (RMRs) are rulings, opinions and interpretations of the Commissioner of Internal Revenue with respect to the provisions of the Tax Code and other tax laws, as applied to a specific set of facts, with or without established precedents, and which the Commissioner may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations. BIR Rulings, therefore, cannot contravene duly issued RMRs; otherwise, the Rulings are null and void ab initio

Revenue Memorandum Circular (RMCs) are issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.

Revenue Bulletins (RB) refer to periodic issuances, notices and official announcements of the Commissioner of Internal Revenue that consolidate the Bureau of Internal Revenue's position on certain specific issues of law or administration in relation to the provisions of the Tax Code, relevant tax laws and other issuances for the guidance of the public.

BIR Rulings are official position of the Bureau to queries raised by taxpayers and other stakeholders relative to clarification and interpretation of tax laws.