COMMON ERRORS OF ACCOUNTANTS IN THE FIELD OF TAXATION

COMMON ERRORS OF ACCOUNTANTS IN THE FIELD OF TAXATION

 

I.        Revised Schedule Of Compromise Penalty

 

II.       Violation In Bookkeeping Rules And Regulations

 

III.      Registration Requirements

 

IV.      Keeping Of Books Of Accounts

 

V.       Preservation Of Books Of Accounts And Other Accounting Records

 

VI.      Printing Of Receipts Or Commercial Or Sales Invoices

 

VII.      Machine Control Specifications Features

 

                A. For Cash Register Machines

                 B. For Pos Machines:

 

VIII.     Reporting Of Monthly Sales

 

IX.       Deductible Expense

 

X.        Itemized Deduction

 

XI.       Expenses In General

 

XII.      Minimum Corporate Income Tax

 

                A. Minimum Corporate Income Tax On 

                     Domestic Corporations

 

                          (1) Imposition Of Tax

                          (2) Carry Forward Of Excess Minimum Tax

 

                B. Minimum Corporate Income Tax (MCIT) On Resident Foreign 

                     Corporation

 

XIV.    Withholding Tax Violations

 

XV.     Duties & Obligation Of A Withholding Agent

 

XVI.    Value Added Tax Violations

 

XVII.   Requirements On Input Tax

 

XVIII.  Invoicing Requirements

 

+PLUS LATEST TAX UPDATES

Ruperto Pacis Somera

Ph.D, DBA, CPA

 

Tax Consultant, Professor/Lecturer

Former Member of the Board of Accountancy

Former Director, Bureau of Internal Revenue

Fellow TAX Management

Fellow TAX Research

For More Details / Inquiry / Reservation, Please call us

Mimi San Pedro

 

Tele Fax: 470-1273

 or Call/Text: 0927-8263175

Email: mimi@powermaxph.com

or mimi.powermax@gmail.com

                        Date       :    March 31, 2017

 

                        Time      :    9:00am - 5:00pm

 

                        Venue    :    RCBC Plaza Makati

CHARTER NEEDS UPDATING TO 21ST CENTURY REALITIES, SAYS BELARO

CHARTER NEEDS UPDATING TO 21ST CENTURY REALITIES, SAYS BELARO

 

Restricting land ownership and the practice of professions "make no sense in this century," House Assistant Majority Leader Salvador Belaro, Jr. said Friday morning as he made his case for amending the 1987 Constitution before the 16th Annual Convention of Lawyers of the Integrated Bar of the Philippines (IBP).

 

"In the 21st century the sources of wealth are no longer the traditional notion of land, labor and capital. Now land could be of little value, but paramount are capital and labor also," Belaro, 1-Ang Edukasyon Party-list Representative, said at the sidelines of the IBP convention, which tackled the role of lawyers in ASEAN integration.

 

Belaro filed House Bill 4257 calling for an ASEAN Integration Plan that will guide national efforts to interface the Philippines with its immediate regional neighbors.

 

Other speakers at the convention include President Rodrigo Duterte, Vice President Leni Robredo, Chief Justice Maria Lourdes Sereno, Senate President Koko Pimentel and Justice Secretary Vitaliano Aguirre.

 

Belaro said, "wealth today is generated by entrepreneurship and expertise or a combination thereof. The specific situation of our country is that we don't have capital so we must attract it."

 

He is the author of a bill (HB 4227) aiming to attract investments in education and another bill (HB 4234) on public-private partnerships in education.

 

Belaro added that, "since economics is a function of supply and demand, the Constitution should be flexible to the vicissitudes in the market."

 

At least seven sections of the Constitution are on Belaro's list for "updating to 21st Century realities."  These are: Sections 2, 7, 10, 11, 14 of Article XII on the national economy and patrimony, Section 11 of Article XVI, and Section 4 of Article XIV. (END)

DTI, Robinsons Department Store launch first Go Lokal! store for MSME dev’t

DTI, Robinsons Department Store

launch first Go Lokal! store for MSME dev't

MANILA—Department of Trade and Industry (DTI), in partnership with Robinsons Department Store, launched its first Go Lokal! store in Robinsons Place Manila on March 24. 

 

Go Lokal! is a public-private collaboration between DTI and local retailer partners. Among its partners, Robinsons Department Store, an affiliate of Robinsons Retail Holdings Inc.,is the first to launch the project in a mainstream outlet. It serves as incubation, marketing, and branding platform for the best of Philippine micro, small and medium enterprises (MSME) products including next generation One Town One Product (OTOP) offerings.

 

Go Lokal! stores showcase modern and indigenous quality products crafted, designed, and created by innovative Philippine MSMEs. It can be found in consumer-frequented locations as a mainstream distribution channel for world-class Filipino products while offering value for money for targeted consumers and tourists.

 

"DTI is excited to open its first mainstream Go Lokal! store with Robinsons Department Store as its dynamic partner in this effort of maximizing market access and providing exposure to our MSMEs. Go Lokal! is truly a vibrant model for MSME development and inclusive business. We are happy that committed partners like Robinsons have taken on this challenge. We look forward to opening more outlets in their malls and department stores across the country," said DTI Secretary Ramon Lopez.

 

The trade chief also said that aside from providing market access for MSME products, the Go Lokal! program is a platform for new entrepreneurs to test the marketability of their products without the fear of losing rental and commercial costs because their experience is free of charge.

 

The market access platform is set to revolutionize the way hard-to-find and artisanal Filipino products are sold in the local market. The design-led concept store will bring together a specially-curated line-up that ranges from food, apparel, accessories, home décor, gadgets and gift items.

 

"This is Robinsons way of featuring world-class locally-made quality products by our MSMEs. Go Lokal! supports Filipino entrepreneurs into their initial foray into more mainstream markets making them more accessible to both local and foreign consumers. The diverse product line of Go Lokal! brings together the best products that the Philippines has to offer," said Mr. Johnson Go, General Manager of Robinsons Department Store.

 

"Ultimately, it's all about accessibility and opportunity for MSMEs, both of which you need to be successful in retail. Go Lokal! is one way for DTI and Robinsons Department Store to give assurance to these business owners that they have support from both the government and the private sector so they may profit from ventures that they are passionate about," Robinsons Department Store President and COO Robina Gokongwei-Pe said.

 

Portion of Go Lokal! revenues will go to various corporate social responsibility (CSR) projects of Robinsons Department Store including the government's drug rehabilitation program. 

DTI, SM’s Kultura sign deal to operate Go Lokal!

DTI, SM's Kultura sign deal to operate Go Lokal!

 MAKATI – The Department of Trade and Industry (DTI) and Kultura, the country's largest retailer of homegrown products, signed an agreement on 24 March to open Go Lokal! stores in SM Makati.

 

DTI Secretary Ramon Lopez, together with Industry Promotion Assistant Secretary Rosvi Gaetos and DTI 4-B Regional Director Joel Valera signed the agreement with Kultura represented by its Senior Vice-President for Operations Ivy Frances Yap and Merchandising Head Fatima Uy. This partnership allows Kultura to operate and manage Go Lokal! in order to provide greater market access to micro, small, and medium scale enterprises (MSMEs).

 

Go Lokal! is a design-led concept store and market platform showcasing modern and indigenous quality products crafted, designed, and created by innovative Philippine micro, small, and medium enterprises (MSMEs). It is mostly found in consumer-frequented locations as a mainstream distribution channel for world-class products while offering value for money to consumers. Go Lokal! is a public-private collaboration and serves as avenue for incubation, marketing, and branding for the best of Philippine MSME products including the next generation One Town One Product (OTOP) offerings.

 

"Kultura and Go Lokal! are complementary avenues to help our local MSMEs gain retail foothold in the Philippine domestic market. We are pleased to open a Go Lokal! together with Kultura as a testament of our collective thrust of inclusive growth and development of our MSMEs." said Secretary Ramon Lopez.  

 

The trade chief also said that aside from providing market access for MSME products, the Go Lokal! is a platform for new entrepreneurs to test the marketability of their products without fear of losing out on rental and commercial costs because their Go Lokal! experience is free-of-charge.  

 

Kultura is the leading brand for uniquely Filipino products. 

 

"Kultura has become a showcase of local artistry and craftsmanship and furthers its advocacy by partnering with the DTI for its Go Lokal Project, providing a venue for the distribution and promotion of products sourced from MSMEs," said Ms. Ivy Yap.

 

Its Go Lokal pop-up store opens in April and will run throughout the year at the 2^nd  level of SM Makati.

Philippines’ hosting of the ASEAN and its Business and Investment Program (ABIP)

PH and SG push for greater trade cooperation within ASEAN. Department of Trade and Industry (DTI) Philippine Trade & Investment Centre (PTIC) – Singapore Commercial Counsellor Glenn Peñaranda talks about the Philippines' hosting of the ASEAN and its Business and Investment Program (ABIP) with the Singapore International Chamber of Commerce (SICC). SICC invited Peñaranda in its March 2017 ASEAN Committee meeting. Peñaranda further shared the agenda of steering the ASEAN to full economic integration through greater trade and investment among member countries and detailed the DTI's ABIP events that will complement the country's priorities under the ASEAN Economic Community pillar. Peñaranda covered as well the latest investment climate and opportunities in the country, highlighting the strong presence of Singapore businesses in various sectors. The SICC is the first business chamber in Singapore. Its key themes are on ASEAN, innovative collaboration, realities of the present and sustainability of Singapore. The Chamber celebrated its 180th in February of this year. In photo: (L-R) Philip Pang, Singapore International Chamber of Commerce (SICC) Director for Government Relations; Philippine Commercial Counsellor Glenn Peñaranda; Philippine Ambassador to Singapore Antonio Morales; Victor Mills, SICC Chief Executive.

Cesar Montano still goes to work at TPB amid complaint

Cesar Montano still goes to work amid complaint

By Azer N. Parrocha

MANILA, March 16 (PNA) -- It's business as usual for Tourism Promotions Board (TPB) Chief Operating Officer (TPB) Cesar Montano who continues to work despite a complaint filed against him by his staff on alleged irregularities.

Tourism Secretary and TPB Chairman Wanda Teo, who recently arrived from an expo in Berlin, Germany, said that Montano remained as chief of the DOT's marketing arm.

"He still goes to the office," Teo told reporters on the sidelines of the 2017 ASEAN-China Year Tourism Cooperation held at the Philippine International Convention Center in Pasay City on Thursday.

She refused to comment when asked if she still "trusted" Montano as Pres. Rodrigo Duterte previously stated in a speech.

The Secretary previously admitted that Montano was not her first choice to head the TPB.

On Monday (March 13), Pres. Duterte said that he still trusted Montano amid allegations and urged officials to file a case.

The Secretary reiterated that the agency would await results of the investigation being conducted by the Presidential Action Center (PACE) where the complaint was filed.

She said that she had no plans for her agency to conduct its own investigation as the Senate also eyed its own probe on the issue.

Asked if she was aware of the allegations even before the complaint was filed, Teo said that she has read them in the newspapers.

In the seven-page letter of complaint filed at the PACE, Montano was accused of irregularities including entering into multimillion peso deals without approval from the board, hiring his own staff whose functions were redundant with current employees and the questionable use public funds.(PNA)

Japanese Companies investment interests in the Philippines

Department of Trade and Industry (DTI) Secretary Ramon M. Lopez met with senior executives of Japan's seven major trading houses in Tokyo recently (March 1, 2017) to discuss President Rodrigo Duterte's economic programs and Japanese Companies investment interests in the Philippines, conservatively valued at Php198.5B.

 

During a breakfast dialogue, Lopez—together with Transportation Secretary Arthur Tugade and PH Ambassador-Designate Jose Laurel V—got together with representatives of the sogo shoshas or Japanese companies with a broad range of business activities. Companies present at the meeting were Mitsubishi Corporation, Mitsui and Co., Ltd., Sumitomo Corporation, Itochu Corporation, Marubeni Corporation, Toyota Tsusho, and Sojitz.

 

"Through sound and consistent macroeconomic policies, the country continues to attract serious investments. The fundamentals are there in terms of a fast-growing economy, a 109-million population base, standing trade agreements, and a young, talented, and dedicated work force," Sec. Lopez said on the Japanese companies' willingness to investment in the Philippines.

 

"All these—plus political will and focused trade and investment policies—act as a magnet for foreign investments," Sec. Lopez added.

 

The investment interests of the sogo shoshas would cover the period spanning late 2016 to 2020, and include:

• Marubeni willing to invest in additional coal power plants worth Php75B over the medium term;
• Itochu and Sumitomo (through PH subsidiaries Dole and Sumifru respectively) willing to invest an additional Php12.9B through 2018 to expand their integrated farming projects in Mindanao;
• Sumitomo, Sojitz, and Mitsui jointly invested in Coral Bay Nickle Corporation and Taganito High Pressure Acid Leaching (THPAL) Nickle Corporation in Surigao and Palawan, at a cost of Php80B;
• The CARS program, under the DTI-driven Manufacturing Resurgence Strategy, enjoying the support and participation of Mitsubishi, Sojitz, Mitsui, and Toyota Tsusho; and, 
• All 7 trading houses expressing interest in the Philippines' "Golden Age of Infrastructure," i.e. the Railway and Subway Projects, the Clark Green City Project, the Expanded Port and RoRo Building Programs, and the Airport Development Projects.

"With DTI's inclusive business model, our resource-based country has the potential to become a major supplier to the world by fostering value chain linkages and partnerships between the MSMEs as suppliers of goods and services, and the large enterprises as buyers," Sec. Lopez said.

 

When asked about the Philippine government's mining and tax policies, Secretaries Tugade and Lopez responded that government reforms are being crafted along balanced and fair consideration of both industry and consumer interests.

 

They also assured investors that with public sector agencies rigidly adhering to President Rodrigo Duterte's zero corruption dictum, projects would receive adequate protection and fair treatment.

 

The two officials likewise encouraged the Japanese trading houses to use their expansive business systems to help in planning an efficient set of economic infrastructure, such as farm-to-market roads, bridges, seaports, airports, railways for cargo, passengers and RORO vessels, and service providers. 

Philippines hosting ASEAN Economic Ministers’ Meeting

MAKATI—The Philippines successfully advocated its trade priorities in ASEAN as the country's hosting of the ASEAN Economic Ministers' Meeting (AEM) Retreat and Related Meetings ends (10 March), laying the groundwork for the 49^th AEM in September.

 

The Department of Trade and Industry (DTI) led by Secretary Ramon Lopez secured endorsements from ASEAN Economic Ministers on the timely realization of Philippine priority deliverables for 2017.

 

"Aside from championing our trade agenda as a country, we are also able to advance the economic agenda of our fellow ASEAN Member States (AMS); thus, bringing our domestic interest to the regional platform," said Sec. Lopez, who chaired the AEM Retreat and Related Meetings, adding that AMS' endorsements will strengthen the implementation of the ASEAN Economic Community (AEC) Blueprint 2025.

 

"Our objective is to make AEC work and to make AEC felt in the day-to-day experience of Filipinos," said Philippine lead Undersecretary Ceferino Rodolfo, who presented before the Meeting the summary of priority deliverables.

 

Innovative, inclusive growth

 

"The Philippines is taking the lead in seeking new policy interventions that are expected to contribute towards helping MSMEs harness the opportunities presented by open and increasingly integrated markets," said Sec. Lopez.

 

A self-certification scheme for Micro, Small and Medium Enterprises (MSMEs) will allow the sector to partake in the benefits of the free trade agreements, while the action agenda on investment, inclusive business and women and youth entrepreneurship will strengthen the investment linkages between MSMEs and Multinational Enterprises (MNEs)—a thrust that Sec. Lopez has been pushing in the domestic front to foster inclusive development towards shared prosperity for all.

 

Aligned with the inclusive growth agenda is the endorsement of the ASEAN Declaration on Innovation, which advocates for an enabling ecosystem that supports entrepreneurial activities in technology and innovation.

"Inclusive business will allow companies to engage the poor and low-income communities as partners, customers, suppliers, and employees in their supply chains because it makes good business sense," added Usec. Rodolfo.

 

Connectivity, services, private sector

 

The AEM Retreat also touched on the launching of the Davao-General Santos-Bitung route of the ASEAN Roll-on Roll-off (RORO) Network, a system that will both enhance intra-regional connectivity and bolster socio-economic growth in the regions.

 

On the services sector, the endorsement of the ASEAN Trade in Services Agreement (ATISA) means fostering a more transparent trade in services, boosting further contribution and competitiveness of the services sectors in ASEAN.

 

The meeting also explored on convening regular dialogue with the private sector to highlight its business priorities and recommendations, as well as identify ways to complement existing public efforts toward taking full advantage of opportunities under the AEC.

 

"Public-private sector engagement not only reduces the gap of understanding of the private sector and the general public on ASEAN, it also promotes intra-ASEAN and global trade and investment and reduces current and future impediments faced by business enterprises," Sec. Lopez added.

 

ASEAN-driven RCEP

 

The AEM Retreat discussed preparations for the 50^th anniversary of the ASEAN, which coincides with the Philippines' ASEAN chairmanship.

 

An equally relevant element of this chairmanship is the push to achieve considerable progress on the Regional Comprehensive Economic Partnership (RCEP), showcasing ASEAN's headship in bringing about a regional partnership that integrates major economic players China, Japan, India, Korea, Australia and New Zealand.

 

The shared optimism on RCEP will mean more foreign investments and more dynamic trade and business alliances. As noted by DTI, RCEP will expand the ASEAN market of 600 million to 3.5 billion as it will include ASEAN's six Dialogue Partners—that accounts for almost half of the world's population, representing a huge integrated market base.

 

This expanded economic partnership is seen to shape the future of trade and economic liberalization in Asia. At the backdrop of recent economic uncertainties and rising protectionism, RCEP is poised to keep the momentum of trade as an engine for regional and global economic growth.

 

"The chairmanship is an event to strengthen the enduring ties that bind us all and an important occasion to reaffirm the shared aspirations and values which will lead us to our envisioned integration come 2025," Usec. Rodolfo concluded.

 

The Philippine hosting of the ASEAN Summit to be chaired by President Rodrigo Duterte will be held next month, while the bigger meeting 49^th AEM is scheduled in September 2017. 

ASEAN Economic Ministers' Retreat Meeting and Related Meetings

PREPARATORY MEETING FOR THE ASEAN ECONOMIC MINISTERS' RETREAT MEETING. Senior trade officials from 10 ASEAN Members States (AMS) met on 8 March 2017 to refine points of discussion and agenda items for the ASEAN Economic Ministers' Retreat Meeting and Related Meetings to be held tomorrow, 9 March. Increasing trade and investment, integrating the micro, small and medium enterprises (MSMEs) in the global value chains and developing an innovation-driven economy are the identified measures to complement the thematic priority on inclusive, innovation-led growth, as the Philippines chairs ASEAN this year on its 50^th anniversary. From Left to Right: Lao PDR - Ministry of Industry and Commerce Deputy Director General Sayakone Saysana, Malaysia - Ministry of International Trade and Industry Deputy Secretary General Datuk Isham Ishak, Myanmar -  Ministry of Finance Htun Zaw Deputy Director General, Thailand - Department of Trade of Negotiations Deputy Director General Ronnarong Phoolpipat, Vietnam - Ministry of Industry and Trade Deputy Director General Nguyen Thi Quynh Nga, Philippines - Department of Trade and Industry, Assistant Secretary Anna Maria Rosario D. Robeniol, Singapore - Ministry of Trade and Industry Director Sulaimah Mahmood, Brunei - Ministry of Foreign Affairs and Trade Assistant Director Narussa'adah Muraharram, Cambodia - Ministry of Commerce Deputy Director General Prasith Suon,Indonesia - Ministry of Trade Director Donna Gultom, ASEAN Secretariat Deputy Secretary General Hong Hin Lim.

ASEAN Economic Ministers Meeting in the Philippines

The Department of Trade and Industry (DTI) is poised to champion the Philippine trade agenda as it takes helm of the ASEAN Economic Ministers Meeting (AEM) Retreat and Related Meetings on 8-10 March 2017 to be participated in by the 10 trade ministers from ASEAN Member States (AMS).

 

As lead agency for the ASEAN Economic Community (AEC) Pillar, DTI led by Secretary Ramon Lopez will promote one of the current thematic priorities of ASEAN on "inclusive, innovation-led growth" for shared prosperity. The other two pillars touch on politico-security and socio-cultural.

 

Increasing trade and investment, integrating the micro, small and medium enterprises (MSMEs) in the global value chains and developing an innovation-driven economy are the identified measures to achieve said priority.

 

"Our strategic measures are consistent with our current agenda to promote employment and entrepreneurship. The AEM is an excellent platform to push for the country's core thrusts on trade and investment, MSME development and innovation," said Sec. Lopez, who will serve as the chair of AEM Retreat and Related Meetings.

 

The trade chief, however, ensured that his meeting's chairmanship will be "fair, workable, rational and inclusive" among AMS. 

 

The AEM aims at strengthening partnership with stakeholders to expand knowledge and utilization of ASEAN-related free trade and economic agreements, provisions and initiatives, including the benefits that an ASEAN national can receive.

 

The trade chief aims to give meaning to these highly-technical engagements, in a manner that ASEAN nationals, including the Filipinos, can identify how they can benefit from the opportunities posed by regional integration without fear and hesitation.

 

"It's time for us to make people feel that their membership in ASEAN is relevant to their day-to-day experience," he said, adding that DTI's hosting also presents good opportunity to raise awareness, to promote understanding on the AEC and the Philippine participation in it, and to re-tell the country's growth story.

 

On increasing trade and investment, Sec. Lopez emphasized that the creation of a sound policy environment and the right mix of support programs are crucial to improve the capacity of businesses to expand, upgrade and diversify. He mentioned that the Regional Comprehensive Economic Partnership (RCEP), an agreement involving the 10 AMS and the six Dialogue Partners will expand the ASEAN market from 600 million to 3.5 billion. DTI will be pushing for the substantial conclusion of RCEP by year-end at the AEM, according to him.

 

On MSME development, Sec. Lopez said that the thrust continues for instituting an enabling environment that allows the sector to develop and internationalize through e-commerce, as well as policies that ease the cost of doing business and provide skills and business training and facilitate the link with the global value chain. 

 

The country will also prod ASEAN to embrace the evolving digital technology as leverage to enhance trade and investment, to provide an e-based business platform and to promote good governance and green technology.

 

"We hope to gather, harmonize and mobilize public-private efforts towards taking full advantage of opportunities under the AEC," he concluded.

 

ASEAN 2017 bears the theme, "Partnering for Change, Engaging the World", which is in line with President Rodrigo Duterte's objective to enhance cooperation with global partners, ensuring that ASEAN citizens, including the Filipinos, can live in peace, stability, security and growth, despite cultural diversities.

 

Following the AEM Retreat and Related Meetings is the ASEAN Summit in April to be chaired by President Duterte. The bigger meeting 49^th AEM, meanwhile, is scheduled in September 2017.