BIR NEW POLICIES & GUIDELINES ON SERVICE OF ASSESSMENT NOTICE + PEZA BACKS PROPOSAL TO USE GROSS INCOME EARNINGS AS TAX BASE + PROPERTY STOCKS TAKE HIT AS POGO ISSUES HEAT UP
Relevant Highlights:
- BIR New Policies & Guidelines On Service Of Assessment Notice
- BIR Updates The Requirements For Lifting Collection Enforcement Notices Such As Warrant Of Garnishment, Notice Of Tax Lien, Notice Of Levy & Notice Of Encumbrance
- Tax & Business-Related News [August 21-26]
I. BIR NEW POLICIES & GUIDELINES ON SERVICE OF ASSESSMENT NOTICE
Revenue Memorandum Order (RMO) No. 40-2019, dated July 30, 2019, prescribes the procedures for the proper service of assessment notice. Accordingly, the assessment notice shall be served to the taxpayer through personal delivery at his registered or known address or wherever he may be found. Substituted service or by mail may suffice, if personal service is not possible. If there is refusal or no person is found in the party’s registered or known address, the Revenue Officers (ROs) concerned shall bring a barangay official and two (2) disinterested witnesses. Such facts shall be contained in the bottom portion of the assessment notice. Personal service shall be completed upon actual delivery of the assessment notice. Service by registered mail is complete upon actual receipt or after five (5) days from the date of receipt of the first notice of the postmaster, whichever date is earlier. Service by ordinary mail is complete upon the expiration of ten (10) days after mailing.
II. BIR UPDATES THE REQUIREMENTS FOR LIFTING COLLECTION ENFORCEMENT NOTICES SUCH AS WARRANT OF GARNISHMENT, NOTICE OF TAX LIEN, NOTICE OF LEVY & NOTICE OF ENCUMBRANCE
Revenue Memorandum Order (RMO) No. 41-2019, dated June 4, 2019, updates the procedures in the issuance of the Notice of Lifting of Collection Enforcements. Specifically, the order prescribes additional instances and documentary requirements to lift BIR collection enforcement notices.
Instances and considerations for the lifting of BIR collection enforcements include:
- Full payment of the unpaid tax liabilities delinquency penalties
- Acceptance of the full payment of the taxpayer’s offer for compromise
- Full payment of the basic tax due and subsequent approval of the abatement of penalties
- Issuance Authority to Cancel Assessment (ATCA)
- BIR’s right to assess and/or collect has already prescribed
- Taxpayer set-up of escrow account in favor of the BIR in the amount not less than his tax liability
- Full destruction of the improvement of property subject to the lien due to fortuitous events
- Issuance of court’s final and executory order for the lifting thereof
- Seized property is no longer owned by the delinquent taxpayer due to disposal prior to its seizure/lien/issuance of notice of encumbrance
- Account garnished is for the salaries of government employees
- Meritorious instances, provided that the interest of the government is not jeopardized, but with prior approval by the Commissioner
- All other cases considered meritorious over which the Commissioner, in the interest of justice and pursuant to the doctrine of “parens patriae” may exercise his discretionary power to directly order the lifting regardless of the above enumerated procedures.
III. TAX & BUSINESS-RELATED NEWS [AUGUST 21-26]
- PEZA backs proposal to use gross income earnings as tax base
- POGO crackdown to affect businesses
- SEC issues memorandum on unfair debt collection practices
- SSS to run after erring employers
- DMCI shares down on POGO ban call
- No Chinese-run POGOs in the Philippines, Pagcor exec tells House
- Property stocks take hit as POGO issues heat up
- Local bourse down on POGO ban call
- Tax reforms to make P52B for health care next year
- Bill for civilian gov’t workers’ pay hike to be sent to House in September
- Higher contribution rate jacks up SSS H1 net income by 446% to P15.3B
- Pagcor revenue from Pogo seen hitting P8B in 2019
- Amid CITIRA issues, exporters readying exit plans — PEZA
- Tax perks are earned – PEZA
- PEZA seeks status quo on tax perks
PEZA backs proposal to use gross income earnings as tax base [Philippine Star, August 26, 2019]
The Philippine Economic Zone Authority (PEZA) expressed support to President Duterte’s push for using gross income earnings (GIE) as tax base of companies which is seen more
advantageous for tax collection.
POGO crackdown to affect businesses [Philippine Star, August 26, 2019]
Clothing retail, food and other commercial businesses that have benefitted from the growing offshore gaming industry in the country are likely to take a hit from the ongoing crackdown on the controversial sector, analysts told The STAR.
Source:https://www.philstar.com/business/2019/08/26/1946430/pogo-crackdown-affect-businesses
SEC issues memorandum on unfair debt collection practices [Philippine Star, August 26, 2019]
The Securities and Exchange Commission (SEC) has issued a memorandum circular preventing unfair debt collection practices such as the use of insults or profane language, violent threats or false representation.
SSS to run after erring employers [Philippine Star, August 26, 2019]
State-run Social Security System (SSS) said the government would run after erring employers who continue to snub the Contribution Penalty Condonation Program (CPCP) scheduled to end early next month.
Source: https://www.philstar.com/business/2019/08/26/1946419/sss-run-after-erring-employers
DMCI shares down on POGO ban call [Manila Times, August 26, 2019]
The property sector dropped sharply last week following China’s call to ban the operations of Philippine online gambling operator (POGO), and listed DMCI Holdings, Inc. was not spared despite positive developments in its property and energy units.
Source: https://www.manilatimes.net/dmci-shares-down-on-pogo-ban-call/605922/
No Chinese-run POGOs in the Philippines, Pagcor exec tells House [Philippine Star, August 24, 2019]
There are no Chinese-run Philippine offshore gaming operations (POGOs) in the country, an official of the Philippine Amusement and Gaming Corp. (Pagcor) told congressmen yesterday.
Property stocks take hit as POGO issues heat up [Philippine Star, August 23, 2019]
Property companies, affected by the controversies surrounding the Philippine Offshore Gaming Co. (POGO), dragged the index lower yesterday.
Source: https://www.philstar.com/business/2019/08/23/1945697/property-stocks-take-hit-pogo-issues-heat-up#pVWv73xsZshyJbCM.99
Local bourse down on POGO ban call [Manila Times, August 23, 2019]
Philippine offshore gaming operators (POGOs) possibly withdrawing their real estate investments in the country following China’s call to ban their operations here dragged the stock market on Thursday.
Source: https://www.manilatimes.net/local-bourse-down-on-pogo-ban-call/604533/
Tax reforms to make P52B for health care next year [Philippine Daily Inquirer, August 23, 2019]
Additional revenues to be collected from tax reforms so far implemented should reach P195.5 billion next year, a portion of which would be spent on the implementation of the universal health care program, a Department of Finance (DOF) official said.
Source: https://business.inquirer.net/277314/tax-reforms-to-make-p52b-for-health-care-next-year#ixzz5xPvayGrF
Bill for civilian gov’t workers’ pay hike to be sent to House in September [Philippine Daily Inquirer, August 22, 2019]
The bill containing the proposed salary standardization law (SSL) 5 that will again raise civilian government workers’ salary next year will be submitted to the Lower House in September, Acting Budget Secretary Wendel E. Avisado said Thursday.
Source: https://business.inquirer.net/277291/bill-for-civilian-govt-workers-pay-hike-to-be-sent-to-house-in-september#ixzz5xPw6eU9a
Higher contribution rate jacks up SSS H1 net income by 446% to P15.3B [Philippine Daily Inquirer, August 22, 2019]
The first-half net income of state-run pension fund Social Security System (SSS) jumped 446 percent to P15.3 billion as the faster rise in revenue boosted by the higher contribution rate since April outpaced the increase in expenses, including bigger pension benefits to retirees.
Source: https://business.inquirer.net/277249/higher-contribution-rate-jacks-up-sss-h1-net-income-by-446-to-p15-3b#ixzz5xPwJxUJE
Pagcor revenue from Pogo seen hitting P8B in 2019 [Philippine Daily Inquirer, August 22, 2019]
Despite the controversy surrounding the industry, the government still expects to see increased revenues from the online gaming industry—resources that were previously nonexistent before the activity was legalized in 2016, according to the chief of the country’s casino regulator.
Source: https://business.inquirer.net/277243/pagcor-revenue-from-pogo-seen-hitting-p8b-in-2019#ixzz5xPwUx3Nc
Amid CITIRA issues, exporters readying exit plans — PEZA [Philippine Daily Inquirer, August 22, 2019]
Japanese firm Cebu Mitsumi Inc. has dropped its plan to expand operations in the Philippines, opting instead to invest in Cambodia, due to concerns on the proposed changes in the incentives regime being pushed under the second package of the government’s tax reform program, the Philippine Economic Zone Authority (PEZA) said.
Source: https://www.philstar.com/business/2019/08/22/1945426/amid-citira-issues-exporters-readying-exit-plans-peza#vqxPKbjrri1DI7bY.99
Tax perks are earned – PEZA [Manila Times, August 21, 2019]
The Philippine Economic Zone Authority (PEZA) on Tuesday clarified that conditions are imposed for firms to enjoy the incentives such as Gross Income Earned (GIE), zero value-added tax (VAT) rating for local purchases, and tax and duty free importation.
Source: https://www.manilatimes.net/tax-perks-are-earned-peza/603540/
PEZA seeks status quo on tax perks [Philippine Daily Inquirer, August 21, 2019]
The Philippine Economic Zone Authority (PEZA) yesterday defended the need to maintain the status quo in providing tax perks to locators to encourage investments and promote ease of doing business, as well as avoid possible corruption and leakages.
Source: https://www.philstar.com/business/2019/08/21/1945084/peza-seeks-status-quo-tax-perks#v4ywY28AlQ0Pwjeo.99
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