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New BIR chief revokes Henares orders

By Prinz Magtulis (The Philippine Star) | Updated July 2, 2016 - 12:00am

MANILA, Philippines - The new commissioner of the Bureau of Internal Revenue (BIR) just gave taxpayers his welcome gifts.

True to his pronouncements, BIR commissioner Cesar Dulay suspended all tax probes, revoked two of his predecessor’s orders and restricted implementation of others issued last month on his first day yesterday.

“I just signed today three orders,” Dulay told The STAR in a phone interview. The orders will not be in effect until published.

Under Revenue Memorandum Order (RMO) 38-2016, the tax chief said he revoked two circulars issued by Kim Henares laying out tax investigation rules against property buyers and sellers.

Issued June 7 and 13, respectively, RMO 24- and 25-2016 stated that real estate purchasers and sellers may be investigated if they cannot prove financial capacity for owning their assets.

“I am recalling those orders as what I stated during our conference in Davao,” Dulay said, pertaining to the workshop with the business community last June 17.

Industry group Tax Management Association of the Philippines (TMAP), who opposed the rules, welcomed the news. “Is it Christmas today?” said president Benedict Tugonon.

Aside from this, Dulay also signed Revenue Memorandum Circular (RMC) 69-2016 that suspends all Henares’ orders from June 1 to 30, which TMAP had said was supposed to be a transition period.

“These are preventive reviews after listening to the players. Initially, only those in June will be covered, but I may consider others,” Dulay said.

Also issued was RMC 70-2016 that suspended all letters of authority (LOA) and instructing all revenue offices to provide him an inventory of these orders by July 16.

BIR gives LOA to taxpayers under investigation or audit.

“I will review them and will clear the valid ones, one by one,” Dulay said.

Sought for comment, Tugonon said he is “very happy” with Dulay’s “quick action” on their concerns. TMAP and Dulay met on the sidelines of the conference in Davao City.

In particular, TMAP had blasted Henares for issuing rules weeks before she stepped down last Thursday. The former BIR chief justified this, saying she was merely doing her job. “This is what we have been asking and advocating for. These rules and regulations are not consistent with the law which could tax compliance very difficult,” Tugonon said in a phone interview.
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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.
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