BIR RESUMES ENFORCEMENT ACTIVITIES + BIR KEEPS JUNE 15 DEADLINE FOR TAX FILING + MASSIVE US LAYOFFS CONTINUE EVEN AS BUSINESSES REOPEN
Other Relevant Tax Updates:
- Bureau of Internal Revenue (BIR) resumes enforcement activities that were restricted under Enhanced Community Quarantine (ECQ)
- BIR reiterates responsibilities of Authorized Agent Bank (AAB) to accept Annual Income Tax Return (AITR) until June 15, 2020
- BIR amends procedures on cash conversion of Tax Credit Certificate (TCC)
- BIR updates internal procedures relative to acceptance of property donations in favor of BIR
- BIR circularizes the updated list of accredited microfinance Non-Governmental Organizations (NGOs)
- BIR circularizes presidential issuance which eliminates overregulation to promote efficiency
- Tax and business-related news [June 6-12]
I. BIR RESUMES ENFORCEMENT ACTIVITIES THAT WERE RESTRICTED UNDER ECQ
BIR Operations Memorandum No. 27-2020, issued on June 8, 2020, directs all concerned revenue officials and employees to resume the enforcement activities that were restricted under ECQ. Enforcement activities include field audit and service of Letters of Authority, assessment notices, and Subpoena Duces Tecum.
II. BIR REITERATES RESPONSIBILITIES OF AAB TO ACCEPT AITR UNTIL JUNE 15, 2020
Bank Bulletin No. 2020-08, dated June 10, 2020, directs AABs to accept AITR for calendar year 2019 until June 15, 2020, Monday, since June 14, 2020 falls on a weekend, to extend banking hours until 5:00 p.m. and to accept the tax payments from taxpayers who are already within the bank’s premises by the close of the said extended banking hour.
III. BIR AMENDS PROCEDURES ON CASH CONVERSION OF TCC
Revenue Regulations (RR) No. 14-2020, issued on May 28, 2020, amends pertinent provisions on cash conversion of unutilized TCC under RR No. 5-2000. Any TCC which remains unutilized for more than one (1) year at any given interval of time during its validity shall be converted into cash with prior written notice by the BIR, subject to the availability of funds and in accordance with the procedural requirements that will be issued by the BIR for this purpose.
IV. BIR UPDATES INTERNAL PROCEDURES RELATIVE TO ACCEPTANCE OF PROPERTY DONATIONS IN FAVOR OF BIR
Revenue Memorandum Order (RMO) No. 15-2020, issued on June 3, 2020, updates the procedures in the acceptance of property donations to the BIR pursuant to Revenue Delegation Authority Order (RDAO) No. 4-2010, as amended by RDAO No. 4-2019. Upon receipt of communication from the donor signifying its desire to donate property to the BIR, the user or intended beneficiary, through the Assistant Commissioner or the Regional Director concerned shall follow the procedures in the acceptance of property donations specified in the RMO. The signatory to the Deed of Donation for Real Properties, and other assets above Php 12 Million should be the Commissioner of Internal Revenue. Otherwise, signatory thereon is the concerned Deputy Commissioner.
V. BIR CIRCULARIZES THE UPDATED LIST OF ACCREDITED MICROFINANCE NGOs
Revenue Memorandum Circular No. 58-2020, issued on June 9, 2020, circularizes the Updated List of Microfinance NGOs accredited by Microfinance NGO Regulatory Council (MNRC) as of May 26, 2020. Under the Implementing Rules and Regulations of Republic Act No. 10693 (Microfinance NGO Act), a Certificate of Accreditation shall be valid for a period of three (3) years from the date of issuance, unless earlier revoked by the MNRC.
VI. BIR CIRCULARIZES PRESIDENTIAL ISSUANCE WHICH ELIMINATES OVERREGULATION TO PROMOTE EFFICIENCY
Revenue Memorandum Circular (RCM) No. 51-2020, issued on May 27, 2020, circularizes Administrative Order No. 23 which prescribes the elimination of overregulation to promote efficiency of government processes and Executive Order No. 105 which prescribes the creation of a national task force to prevent the entry of animal-borne diseases, contain and control the transmission thereof, and address issues relating thereto.
VII. TAX AND BUSINESS-RELATED NEWS [JUNE 6-12]
- Tax memo aims to ‘remind,’ not ‘go after’ online sellers, says DOF
- Massive US layoffs continue even as businesses reopen
- Palace approves 12 new ecozones
- BIR tells online sellers: Register, pay taxes
- Secure travel documents before flying: PAL, Cebu Pacific tell passengers
- BIR: Issuing temporary receipts no longer allowed during GCQ
- SEC asks corporations to boost cybersecurity
- Thailand approves VAT for foreign digital platforms
- BIR keeps June 15 deadline for tax filing
- SSS members who lost jobs can get up to P20,000 aid
- Over 2,000 companies declared permanent closure, redundancy or retrenchment: DOLE
- Tax reform more important than new anti-terror bill: Financial executives group
- Due to ECQ bans, tax collections from ‘sin’ products continue slide in May
- Bayanihan loan relief to cost gov’t P470M in foregone taxes — think tank
- SEC agrees, dual citizens are ‘100 percent Filipino’
Tax memo aims to ‘remind,’ not ‘go after’ online sellers, says DOF [ABS-CBN News, June 12, 2020]
The Department of Finance said Friday it was not running after small sellers when the tax bureau issued a memorandum reminding those who transact online to register and pay for taxes.
Massive US layoffs continue even as businesses reopen [ABS-CBN News, June 12, 2020]
Total US layoffs caused by the coronavirus pandemic reached 44.2 million even as businesses try to reopen, and analysts warn of continuing damage to the world’s largest economy as COVID-19 shows few signs of abating.
Palace approves 12 new ecozones [Philippine Daily Inquirer, June 11, 2020]
Malacañang has approved a dozen new economic zones worth P6.4 billion in the middle of a pandemic, according to data from the Philippine Economic Zone Authority (Peza).
BIR tells online sellers: Register, pay taxes [ANS-CBN News, June 11, 2020] Online sellers should settle their taxes and register with the Bureau of Internal Revenue, it said Wednesday as e-commerce exploded during the coronavirus pandemic.
Secure travel documents before flying: PAL, Cebu Pacific tell passengers [ABS-CBN News, June 11, 2020]
Passengers may be barred from boarding their flights if they lack documents that local governments require as precaution against the coronavirus pandemic, Cebu Pacific and Philippine Airlines said Wednesday.
BIR: Issuing temporary receipts no longer allowed during GCQ [Philippine Daily Inquirer, June 10, 2020]
As most parts of the country shifted to a less-restrictive general community quarantine (GCQ) to resume the majority of business activities, establishments will no longer be allowed to issue temporary receipts, the Bureau of Internal Revenue (BIR) said.
SEC asks corporations to boost cybersecurity [Philippine Daily Inquirer, June 10, 2020]
“Digital transformation benefits businesses, allowing them to improve their productivity and realize greater efficiencies, but not without risks,” SEC chair Emilio Aquino said.
Thailand approves VAT for foreign digital platforms [Philippine Daily Inquirer, June 10, 2020]
The Cabinet has approved a draft bill that will levy VAT on international digital platforms, expecting the measure to net additional annual revenue of Bt3 billion ($96 million).
BIR keeps June 15 deadline for tax filing [ABS-CBN News, June 10, 2020]
The Bureau of Internal Revenue said Wednesday it would keep the June 15 deadline for filing of income tax returns to help fund the government’s battle against the coronavirus pandemic.
SSS members who lost jobs can get up to P20,000 aid [Philippine Daily Inquirer, June 9, 2020]
Contributing members of the Social Security System (SSS) who lost their jobs due to the COVID-19 pandemic can get as much as P20,000 in cash benefit.
Over 2,000 companies declared permanent closure, redundancy or retrenchment: DOLE [ABS-CBN News, June 9, 2020]
Nearly 70,000 Filipinos have lost their jobs after thousands of businesses here in the country ceased their operations due to the impact of the COVID-19 pandemic. But an employer’s group warns companies who will declare bankruptcy may be unable to pay workers’ separation benefits.
Tax reform more important than new anti-terror bill: Financial executives group [ABS-CBN News, June 9, 2020]
A group of financial executives on Monday said it opposes the enactment of the Anti-Terrorism Act (ATA), and called on Congress to prioritize the passage of the corporate tax reform bill instead.
Due to ECQ bans, tax collections from ‘sin’ products continue slide in May [Philippine Daily Inquirer, June 8, 2020]
Collections from “sin” taxes continued to slide in May amid the liquor ban and restricted deliveries of cigarettes during the extended COVID-19 quarantine.
Bayanihan loan relief to cost gov’t P470M in foregone taxes — think tank [Philippine Daily Inquirer, June 8, 2020]
The loan relief extended under the Bayanihan to Heal as One Act which exempted payment of documentary stamp tax (DST) is expected to further weaken tax collection just when the government needed more money for COVID-19 response, the state-run think tank National Tax Research Center (NTRC) said.
SEC agrees, dual citizens are ‘100 percent Filipino’ [ABS-CBN News, June 8, 2020]
The Securities and Exchange Commission shares the view of the Justice Department that dual citizens are also “100 percent Filipino, its commissioner said Monday before a House hearing on ABS-CBN Corp’s franchise.
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