November 13, 2013
Dear fellow TMAP Members:
We hope all is well with you.
We have all been deeply moved and troubled by
the tragedy that our country and our fellowmen
have been going through because of typhoon
Yolanda. The occasion, of course, calls for us
to do our part in helping the victims. Thus, we
would like to inform you that your Board of
Directors has approved the donation of a total
amount of Php100,000 from the Association’s
funds to support the victims. As of yesterday,
we have disbursed funds to the following groups:
Philippine National Red
PLDT-TV 5 Foundation
Aboitiz Foundation, Inc.
Caritas Manila Inc.
We have also been working with one our
directors, Atty. Benedict Tugonon, who hails
from Ormoc City, to transport goods there. His
family is safe, but not necessarily spared from
the brunt of the tragedy.
There are still some excess funds which we are
planning to donate to some groups which may have
direct access to Samar or other less-attended-to
areas. If you have suggestions as to whom we
shall donate the funds, please let us know.
We would also like to inform you that your Board
has decided that we should still celebrate
Christmas together at our Christmas party
scheduled on December 4, 2013. We agreed,
however, to simplify the party, scale down
costs, and donate the savings.
We continue to pray for our countrymen -- that
they will be able to receive the help that they
badly need and eventually rebuild their lives.
We all know that there are important lessons to
be learned from this tragedy, and that there is
so much to be done. Thus, we will continue to do
what we can to help, in whatever small way,
whether as an Association or in our personal
In any case, if you have any suggestions, please
feel free to let us know.
Thank you very much.
Euney Marie J. Mata-Perez
to Yolanda Victims
one way or another, every Filipino was affected
when the strongest tropical cyclone for the year
(Yolanda or International codename: Haiyan) hit
the Philippine territory on November 8, 2013.
Super Typhoon Yolanda left a trail of
devastation mainly in the Visayas region, which
directly affected the lives of at least 9.8
million people based on the report of the
National Disaster Risk Reduction and Management
Council as of November 16, 2013.
Social Media Activism
With all the talks about the Napoles Scam and
the horrendous amount of taxpayers’ money that
were allegedly siphoned through bogus NGOs, TMAP
members were naturally interested on what is
being done to run after the perpetrators of the
scheme and how social media activism helped
galvanize the Filipino netizens.
Guests social media activists Ms. Peachy
Rallonza-Bretana and Atty. Michelle Estor
discussed their experience and lessons learned
with TMAP members during the October GMM held
last 23 October 2013.
School Partnership Projects Underway
On June 26, 2013, TMAP signed a Memorandum of
Agreement with the Ateneo Law School to
establish a mutually beneficial partnership and
cooperation towards the attainment of the
following goals, among others: (1) improve the
quality of tax education by jointly undertaking
seminars, symposia, forums and round table
discussions; (2) develop and update a tax
library with TMAP selecting and donating books
and materials needed in tax practice; and (3)
establish an institutional presence of TMAP in
the Ateneo and improve the awareness of students
on the extent of tax practice in the
New Member's Corner
TMAP welcomed two new members into its fold
during the October GMM. They are:
Mary Rose V. Pascual
Salvador and Associates and
Mary Elizabeth M. Belmonte
Salvador and Associates
|LATEST TAX UPDATES
BIR Issues New Rules on
Income Payment Deductibility and Record
The BIR recently released regulations outlining
new rules relative to the requirements for
deductibility of certain income payments and the
retention of books of accounts and other
In Revenue Regulations No. (“RR”) 12-2013, which
amends Sec. 2.58.5 of RR 2-98, the BIR strictly
implements the deductibility requirements under
Sec. 34(K) of the National Internal Revenue Code
of 1997 (“1997 NIRC”). Under the said Sec.
34(K), any income payment which is otherwise
deductible shall be allowed as a deduction only
if it is shown that the income tax required to
be withheld has been paid to the BIR.
RR 12-2013 provides further, however, that no
deduction will be allowed notwithstanding
payment of withholding tax at the time of audit
investigation or reinvestigation/reconsideration
in cases where no withholding was previously
made. This means that even if the taxpayer
settles the deficiency withholding tax in the
course of a tax investigation, the underlying
income payment would still not be allowed as a
deduction. Prior to RR 12-2013, a taxpayer is
allowed to claim as deductible expense where no
withholding of tax was made if the
taxpayer/withholding agent pays the tax
including the interest and penalties incident to
the failure to withhold the tax at the time of
the audit investigation.
Specifically, the following provisions of Sec.
2.58.5 of RR 2-98, which cured the
non-withholding, were deleted: (a) the payee
reported the income and pays the tax due thereon
and the withholding agent pays the tax including
the interest incident to the failure to withhold
the tax, and surcharges, if applicable, at the
time of the audit investigation or
reinvestigation/reconsideration; (b) the
recipient/payee failed to report the income on
the due date thereof, but the withholding
agent/taxpayer pays the tax, including the
interest incident to the failure to withhold the
tax, and surcharges if applicable, at the time
of the audit/investigation or reinvestigation;
(c) the withholding agent erroneously under
withheld the tax but pays the difference between
the correct amount of tax withheld, including
the interest, incident to such error, and
surcharges, if applicable, at the time of the
reinvestigation/reconsideration; and (d) items
or deduction representing return of capital such
as those pertaining to purchases of raw
materials forming part of finished product or
purchases of goods for resale, shall be allowed
as deductions upon the withholding agent’s
payment of the basic withholding tax and
penalties incident to the non-withholding or
On other hand, in RR 17-2013 dated September 27,
2013, the BIR now requires taxpayers to keep
their books of accounts and accounting records
for a longer period of 10 years instead of the
previous rule of three years.
The BIR explained that while Sec. 203 of the
1997 NIRC -- which sets a period of three years
for the government to assess internal revenue
taxes -- implies that records of the taxpayer
must be preserved for a period of three years,
the law allows certain exceptions. Thus,
according to the BIR, Sec. 222, for instance,
states that the three-year prescriptive period
may be extended to 10 years in case of a false
or fraudulent return with intent to evade tax or
of failure to file a return, reckoned from the
discovery of the falsity, fraud or omission.
The three-year period may also be waived if both
the BIR Commissioner and the taxpayer agree in
writing that it be extended. Likewise, if there
is a pending case, protest or claim for tax
credit or refund of taxes and the books and
records concerned are material to the case,
these documents should be kept until the case is
resolved, the BIR said.
The BIR concluded that “it is in the best
interest of both the government and the
taxpayers that books of accounts and accounting
records are retained for a longer period of 10
04 JONGKO, Catherine
06 BERTULFO-CARISMA, Susan
07 SANTIAGO, Willie G.
11 TAM-YAP, Teresa R.
13 PO, Pepito E.
13 SORIANO, Sarah C.
15 BAGA, Jewel M.
17 ANGELES, Jocelyn Angelita C.
19 GUERZON, Benjamin E.
21 CALMA, Renato G.
21 DELA PAZ, Cynthia L.
22 LIM, Roque A.
23 JAPITANA, Benito J.
26 SISON, Mildo Flor C.
29 ROQUE, Eleanor L.
04 YUSON-LAYUG, Laura Victoria A.
04 LERMA-FERRER, Maria Angeli O.
04 MINIOZA, Marivic F.
04 PAR, Benigno Jr. G.
04 RAMOS, Romeo S.
05 FRANCISCO, Emma C.
07 REYES, Fidela Francisca T.
10 EMPALMADO, Nelson D.
10 BLANCO-LATORRE, Rizza
12 MARTINEZ, Hector A.
12 QUINGQUING, Roger B.
15 ZARA, Clark Vincent M.
16 YNGSON, Manuel D.
17 VILLALUZ, Ma. Victoria A.
18 BANCORO, Adrian V.
24 ESPANO, Ma. Victoria C.
27 ZAMORA, Primitivo
27 BISDA, Patricia B.
28 TAN-TORRES, Joel L.
29 ZARATE, Karthyrn A.
30 YEE, Andro M.
03 ROQUEL, Edward L.
15 GARCIA, Ramon F.
15 UBERITA, Taryn F.
16 YABUT, Oliver
19 MORALES, Virgilio V.
21 ACOSTA, Ernesto D.
21 LIPANA, Tomasa
23 LLANTE, Mary Ruth L.
28 GALLARDO, Raymund S.
29 MACEDA, Dorothy T.
29 CABIGON, Ma. Theresa
30 ANDRADA, Rizalina P.
Bureau of Internal Revenue |
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Court of Tax Appeals |
Department of Finance |
Bureau of Local
Government Finance |
Securities and Exchange
Bangko Sentral ng Pilipinas |
National Tax Research Center
November 20, 2013
Mandarin Hotel Ballroom
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November 20, 2013
Mandarin Hotel Ballroom
Click here for more details
December 4, 2013
The Residences at Greenbelt Makati
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