7:46 AM
philtaxation
This post is a sequel to the limitations of the taxing power of the state. This time let us proceed to the CONSTITUTIONAL LIMITATIONS - those limitations on the state's exercise of the taxing power specifically provided by the particular provisions of the Philippine Constitution.a. Due process of law. As provided for, no person shall be deprived of life, liberty or property without due process of law. This covers two types: substantive, and procedural. Substantive due process relates to the circumstances and procedures in the passage of tax laws and ordinances, while the other relates to the procedural aspects in the implementation of the tax laws and ordinances. Applied to taxation, due process mandates that there should be a valid law imposing a tax to a particular taxpayer, and should the...
Sunday, June 14, 2009
Thursday, June 11, 2009
More taxes on alcoholic beverages, cigaretters and on Text messaging (SMS) CONTEMPLATED!
Collection deficit is now becoming a popular and urgent issue and government officials are now taking more steps to remedy the situation and improve Philippine economic condition.Accordingly, the state is now reportedly contemplating to impose new taxes, if not revitalize the present tax imposition on certain articles and industries. One of which is the so called SIN taxes on alcoholic beverages, and on cigarettes as millions and millions of Filipinos are on to said items making it a great potential for tax collection improvement. Notably, the imposition of higher tax rate is premised on the state's exercise of police power to discourage the rampant use of these articles for their proven negative health effects.Another item is the tax on short messaging service (SMS) or the commonly termed...
Is BIR ruling madatory for the transfer of title over common areas of condominium?
Under RMO No.18-2009 dated April 26, 2009, BIR Ruling previously required before a Certificate Authorizing Registration (CAR) is issued for the transfer by real state developers to the condominium corporation under RA 4726 of titles over common areas IS NO LONGER REQUIRED.This is based on the legal mandate of RA No. 4726 or the Condominium Act that titles over common areas of condominiums shall be placed in the name of the condominium corporation composed of unit owners of the same condominium.By this new procedure, real property developers will experience a more simpler procedure as the headaches of securing a BIR Ruling is being dispensed with. This will likewise lessen the workload of the BIR on BIR rulings and they are expected to concentrate more on other ruling areas where tons of applications...
How long will tax refund or tax credit be acted upon by the BIR?
RMC No. 29-09 dated April 16, 2009. Clarifies that on processing the claim for tax refund/credit certificates, the BIR Commissioner has only within 120 days from date of filing complete documents to process the following claims: a. Input taxes from VAT zero-rated and/or effectively zero rated; b. Excess income tax credits; c. Erroneous tax payments d. Excise tax from certain importations. As a matter of procedures, these refunds undergo the normal tax verification procedures and Revenue Officers are encourage to exercise utmost care and prudence in the recommendation for granting tax refund and/or tax credit and sanctions awaits for erring officials.Thus, applicants of the above claims are encouraged to prepare and complete immediately the required documents and papers so the application could...
Target institutions of the 2008 audit program, PREPARE!
RMO 19-2009 dated May 28, 2009. As a tool to boost collection and improve the BIR's collection deficits, Revenue District Offices are ordered to adopt this 2008 audit program which concentrates on mandatory audit of establishments with gross sales or receipts exceeding P5M within the jurisdiction of Makati, Valenzuela, Quezon City and Manila.Other mandatory audits are provided for retiring establishments with P10M gross sales or receipts, applications for refunds/tax credits, the health provider industry, review centers, TESDA accredited institutions, non-stock corporations, lending investors, and many more.I suggest that if you belong to these institutions, kindly prepare, if not refresh and familiarize your tax issues for 2008. You may conduct an internal pre-audit tax compliance for 2008...
Where to file real property's DST, CGT or CWT of LARGE taxpayers?
RR No. 5-2009 dated March 16, 2009 reverts back the venue for filing and payment of documentary stamp tax (DST) and capital gains tax (CGT) or creditable withholding taxes (CWT) relative to the transfer of real properties by LARGE TAXPAYERS to the Revenue District Office where the property is located. Accordingly, the CAR shall be issued by the RDO of property location upon satisfaction of the requirements. The previous venue was with the large taxpayer's division of the region or at the main office in certain cases.This is more convenient for the taxpayers and the BIR as the RDO of location is expectedly more familiar with the details and circumstances of the property to be transferred."Taxes affect lives, care for tax and save liv...
Friday, May 29, 2009
General Principles – Part II
Limitations of taxing powerWhile the power does not emanate from a grant, as the same is necessarily inherent upon the existence of the state, exercise of the power is subject to those limitations inherent upon it and those expressly provided for by the Constitution as follows:Inherent limitations. These limitations are those limitations that emanates from the very nature of the power of taxation. They are very basic and are built-in with the power. Some may be similar to the constitutional limitation but the constitutional limitation seems to be supreme as they are the most specific, thus, specifically intended to rule the application or exercise of the power of taxation. Hereunder are the INHERENT LIMITATIONS:• Levy for public purpose. To levy a tax means to impose or to charge or to collect...
Thursday, May 28, 2009
Sex Video: Tax if Hayden Kho extra-judicially settles with Katrina Halili - No VIDEO download!
On this post, let us try to explore on another interesting application of Philippine tax rules in connection with the country's hottest sex video in town. Beforehand however, let me take the opportunity to share my personal views on the event. Personally, it is with my deep regret that the same had came out and the same is hereby condemned. It is totally unnecessary and constitutes a culpable misconduct of an ethical professional to completely disregard the chastity and delicate feelings and personality of those involved. As other put it, ito ay PAMBABABOY. Of course, it may well happen that intimate happenings come across lovers brought about...
Manny “Pacman” Pacquiao: Tax on boxing awards and prizes
With the duly concluded fight with Ricky Hatton and with the advent of his historic fights throughout the last decade, Manny "pacman" Pacquiao proves to be the Greatest of them all and the Pound for Pound King in the boxing arena. The question commonly being posed is, what keeps Pacman a great Fighter of his time? Based on my personal observations, it is undeniable that Pacman is a faithful Roman Catholic and God fearing, a true Pinoy characteristic. He does not fight with his own strength alone, but he fights along with His creator above. This is evident prior to the commencement and at the end of every brave fight in the prestigious boxing...
Wednesday, May 27, 2009
General Principles - Part I
Nature of the power to tax, purpose, and scopeTaxation is the act of levying the tax, i.e., the process or means by which the sovereign, through its law-making body, raises income to defray the necessary expenses of the government. It is merely a way of apportioning the cost if the government among those who in some measures are privileged to enjoy its benefits and, therefore, must bear its burdens. (71 Am Jur. 2nd 342; 1 Cooley 72-73). Tax is defined as the lifeblood of the government. Major revenue of the government is sourced from taxation so that in the most pressing times of financial and economic crisis, the agency authorized to administer taxes – the Bureau of Internal Revenue (BIR) should always be on the front line. As a matter of fact, BIR nowadays are becoming stricter in the...
