TMAP-Home BACK UP ARTICLES

Connect with us

CALENDAR OF EVENTS

GENERAL MEMBERSHIP MEETING

August 30, 2018

Makati Diamond Residences

11:30 AM to 1:30 PM

Guest Speaker : Secretary Benjamin E. Diokno of the Department of Budget and Management

ANNUAL AOTCA CONFERENCE

September 12, 2018
Ulaanbaatar, Mongolia
Registration and details:
info@aotca2018mongolia.com

PRESS RELEASES

MEMBER'S CORNER

TAX MANAGEMENT ASSOCIATION OF THE PHILIPPINES, INC.

LATEST NEWS

New TMAP Members Inducted During the January GMM

The Tax Management Association of the Philippines (TMAP) welcomed five new members of the organization who also took their oath during the induction ceremonies of new officers and directors and first General Membership Meeting held at the Makati Diamond Residences in Legaspi Village, Makati City last January 28, 2016.

A Day with Press for TMAP

The Tax Management Association of the Philippines, Inc. (TMAP) hosted a Press Lunch held at the Tower Club which is located in Philamlife Tower along Paseo de Roxas in Makati City last February 4, 2016.

TMAP Welcomes New Officers and Directors

The Tax Management Association of the Philippines, Inc. (TMAP) welcomed its new set of officers, directors and committee chairpersons who took their oath during the induction ceremonies and first General Membership Meeting held at the Makati Diamond Residences in Legaspi Village, Makati City last January 28, 2016.

Presidentiables and Other Candidates Urged to Enact Tax Reform within First 100 Days of Administration

The Tax Management Association of the Philippines (TMAP) is calling on all presidential

candidates to certify tax reform as urgent and commit to enact a holistic tax reform measure within the first 100 days of their presidency. TMAP is likewise calling on all candidates for Senate and Lower House seats to support and enact the needed tax reform measure.

New TMAP Members During the January GMM

Atty. Ramon Enrique B. Ramirez is presently the Legal Manager for Tax of the Global Corporate Legal Affairs Team of International Container Terminal Services, Inc. (ICTSI). He joined ICTSI in October 2014. ICTSI will now have two members, Atty. Ramirez and Mr. Benjamin Gorospe III. He graduated from the University of the Philippines (UP) College of Law in 2006. His undergraduate course was Bachelor of Arts in Public Administration also from UP. After graduation, he joined SGV where he held the positions of Tax Senior Associate and then Tax Manager from 2006 to 2014.

Mr. Christian Oliver M. Mataverde or Chris is the Managing Partner of SMF Accounting & Management Services Co. He’s a CPA. He graduated from Polytechnic University of the Philippines with a degree in Bachelor of Science in Accountancy. Before putting up his own accounting firm, he worked for consultancy firms in the Philippines. Then he worked for a Gaming Ship as Ship Head Accountant in the Palm Beach Casino Line. After that, he joined the Auditing Firm of A.F. Paredes & Co. in New Jersey, USA.

Atty. Charito R. Villena is presently the Head for Tax of Philex Mining Corporation. She’s a CPA-Lawyer. She finished Bachelor of Science in Business Administration (BSBA) and Law from UP Diliman in 2008. Her previous employers are SGV, Citibank Phil., and PLDT.

Atty. Jonathan J. Larga, a CPA Lawyer, is an additional representative of Smart Communications Inc. Atty. Larga joined Smart in September 2015. He is presently one of three Senior Managers for the Tax Department. Before Smart, he worked for the Investment & Capital Corporation of the Philippines (CCP) and was a TMAP member representing said firm. He finished his Bachelor of Laws from the University of Sto. Tomas.

Atty. Lyne L. Arnaldo Vega is an additional representative of Picazo Buyco Tan Fider & Santos. Atty. Vega finished BSBA and Law from UP Diliman. She went straight to Picazo after graduation and was promoted to Partner in 2014.

A Day with Press for TMAP

Atty. Benedict Tugonon, TMAP’s newly elected President, shared the various tax reforms that the Association will be pushing for this year in line with its theme – “Tax Reforms for Rapid Development of Philippine Economy”.

Specifically, under his stewardship, TMAP will be pushing for the adjustments of the income tax rates, institutionalization of the administrative process for claiming input VAT refunds, VAT exemption for Section 40(c) transfers, the simplification of tax compliance for professionals and SMEs, adoption of “deemed approved” policy for unacted applications and the reinstatement of the Preliminary Assessment Notice stage.

The members of the press who attended the said event are the following –

 Bianca Cuaresma – Business Mirror

 Keith Richard Mariano – Business World Publishing Corporation

 Angela Celis – Malaya Business Insight

 Madelaine Miraflor – Manila Bulletin

 May Caraballo – Manila Times

 Ben Arnold De Vera – Philippine Daily Inquirer

 Joann Villanueva – Philippine News Agency

 Priz Magtulis – Philippine Star

 Gabrielle Marie Binaday – The Manila Standard

TMAP WELCOMES NEW OFFICERS AND DIRECTORS

TMAP’s 2016 Officers and Board of Directors were formally initiated into office by Rep. Romero “Miro” S. Quimbo, the Chairman of Committee on Ways and Means of the House of Representatives, who also delivered the Keynote Address centered on TMAP’s theme, “Tax Reforms for Rapid Development of Philippine Economy”. He likewise shared the various tax reform laws and bills that the 16th Congress was able to pass.

The theme is aligned with the Association’s objectives of promoting the development of tax management, monitoring and evaluating proposed, pending and current tax legislation, recommending tax reforms, provide assistance to government in determining appropriate tax directions and instituting improvements in the tax system.

Atty. Benedict R. Tugonon, a Partner from Quiazon Makalintal Barot Torres Ibarra & Sison, accepted the duties and responsibilities of the Association’s highest post from outgoing President, Atty. Terence Conrado H. Bello of Baniqued & Baniqued.

Atty. Tugonon, during his inaugural speech, said that this year’s focus would be pushing for various tax reforms needed to sustain the country’s economic growth and improve its competitiveness. Specifically, under his stewardship, TMAP will be pushing for the adjustments of the income tax rates, institutionalization of the administrative process for claiming input VAT refunds, VAT exemption for Section 40(c) transfers, the simplification of tax compliance for professionals and SMEs, adoption of “deemed approved” policy for unacted applications and the reinstatement of the Preliminary Assessment Notice stage.

PRESIDENTIABLES & OTHER CANDIDATES URGED TO ENACT TAX REFORM WITHIN FIRST 100 DAYS OF ADMINISTRATION

The Tax Management Association of the Philippines (TMAP) is calling on all presidential candidates to certify tax reform as urgent and commit to enact a holistic tax reform measure within the first 100 days of their presidency. TMAP is likewise calling on all candidates for Senate and Lower House seats to support and enact the needed tax reform measure.

The candidates are again reminded of the urgent need to enact tax reform due to the inherent inequity in the current personal income tax system and our uncompetitive corporate income tax rates vis-à-vis the corporate income tax rates of our ASEAN neighbors.

The tax brackets for individuals are outdated resulting in an unfair regressive system. Inflation has eroded the income brackets and has pushed up the meager earnings of salaried individuals into higher tax rate brackets causing increases in income taxes, but without a corresponding increase in purchasing power. This has created inequity and has caused the current personal income tax system to be regressive.

At the same time, the tax gap between salaried workers and self-employed individuals and professionals (SEPs) continue to be significant which further aggravate the unfairness in the tax system. As of 2014, compensation income earners accounted for 86% of total collections from individuals, while SEPs only contributed 14% to total collections.

Moreover, the Philippines effectively imposes the highest personal income tax rate and the highest corporate income tax rate among the ASEAN-6 countries. Reducing the personal and corporate income tax rates will make the Philippine workforce and corporations doing business in the Philippines competitive with their ASEAN neighbors.

Tax reform, however, is not all about just giving tax breaks and providing tax relief. While we need to immediately address the current unfairness and inequity in the system and simplify compliance, a holistic approach to tax reform will have to be undertaken to address any revenue loss from these measures, especially those arising from competitiveness issues, and allow the government to collect more.

With this in mind, TMAP proposes a 5-point Tax Reform agenda to improve fairness and expand the revenue base:

1. Restructure the personal income tax and corporate income tax systems: immediately adjust/restructure income tax brackets for individuals and index the brackets against CPI, and reduce personal income tax and corporate income tax rates in line with our ASEAN neighbors.

2. Improve tax compliance of self-employed individuals and professionals: simplify the manner by which SEPs compute their taxable income; simplify the VAT system for SEPs with annual gross sales/receipts of P10 million or below; and simplify return filing, bookkeeping and invoicing requirements. Congress may want to consider also lifting bank secrecy laws consistent with international standards to enable revenue authorities to combat tax evasion.

3. Broaden VAT base: in lieu of increasing the VAT rate (already the highest in the ASEAN region), which will adversely impact the poor, consider other measures that would broaden the VAT base and maximize tax collections. The VAT effort rate is just 2.2% of GDP, hence, there is ample leeway to increase VAT collections through other means than just by increasing the VAT rate. For example, the VAT base can be broadened by revisiting exemptions and retaining only those which efficiently and effectively achieve clear social and economic objectives.

4. Consider indexing the excise tax on petroleum products: excise tax rates on petroleum peroducts have not been updated since 1997 and fuel prices are expected to stay low for at least a few more years. Morever, lower fuel prices have encouraged car owners to drive more, aggravating traffic and adding to air pollution. Indexing excise taxes within certain parameters will help curb these environmental and mobility issues.

5. Enact Fiscal Incentive Reform Bill: data gathered from TIMTA implementation will enable policy and fiscal advisers to recommend elimination of redundant incentives and retention of certain incentives to make the Philippines attractive to foreign investors. Performance-based incentives can be adopted as a policy for the grant of incentives for a fixed term, subject to periodic review and/or adjustments, rather than preferential tax rates in perpetuity.

To show full support for the foregoing and convince the incoming administration to certify tax reform as urgent, TMAP urges taxpayers to join “April 15 Black Friday,” a symbolic unity declaration to be held on April 15, 2016, annual ITR filing deadline, demanding for tax reform. Taxpayer-voters are also encouraged to speak to their candidates about the issue, engage them in healthy discussion, and get them to commit to publicly declare support for tax reform.

Taxpayers who wish to participate in “April 15 Black Friday” are asked to wear black on that day, post selfies in social media (Facebook, Instagram, Twitter, etc.) holding a “Tax Reform Now” sign, and use the hashtag #April15BlackFriday in their posts.

USEFUL LINKS

Private Policy