Year-End Tax Updates and Compliance

The content of this webinar includes relevant BIR regulations and memorandum orders; and Court of Tax Appeals and Supreme Court rulings covering the year 2024 (up to November). The topics are easily arranged based on the practical issues as it is encountered by the taxpayers. The outline will be updated as new regulations and rulings are released and made available to the public.

INCOME TAX

1. Whether or not Court in Division erred in canceling BIR’s assessment against respondent’s deficiency income tax for taxable year 2014 (Megaconstruct Group, Inc. vs. CIR, CTA EB No. 2633, February 01, 2024)
2. Whether or not employees who are Philippine nationals are exempt from payment of income tax on their compensation income (Irish Fe N. Aguilar, et.al. vs. CIR, CTA EB No. 2692, February 07, 2024)
3. Whether the petitioner failed to prove that its income payments were declared as part of the gross income reported in its annual income tax return (AECOM Phils. Consultants Corp. vs. CIR, CTA EB No. 2744, June 10, 2024)

VAT-EXEMPT & VATABLE TRANSACTIONS

1. This regulation amends RR No. 8-2021 implementing the adjustment of the selling price threshold of the sale of house and lot, and other residential dwellings for Value Added Tax exemption purposes (Revenue Regulations No. 01-2024, January 15, 2024)
2. This regulation implements amendments introduced by RA No. 11976 (Ease of Paying Taxes Act), on relevant provisions of Title IV – Value-Added Tax and Title V – Percentage Tax of the Tax Code of 1997, as amended (Revenue Regulations No. 03-2024, April 11, 2024)
3. This regulation implements amendments on RA No. 11976 (Ease of Paying Taxes Act), on Tax Refunds (Revenue Regulations No. 05-2024, April 11, 2024)
4. This prescribes guidelines in implementation of risk-based approach in processing VAT Refund Claims (Revenue Memorandum Order No. 23-2024, June 19, 2024)
5. This amends certain provisions of RMO No. 23-2024 regarding VAT refund claims considered as high-risk requiring full verification (Revenue Memorandum Order No. 42-2024, October 02, 2024)
6. Whether or not Input tax is required to be directly attributable to zero-rated sales in claims for refund or issuance of tax credit certificate (Mindanao II Geothermal Partnership vs. CIR, G.R. No. 253003, January 24, 2024) 

7. Whether the refund claim of erroneously collected VAT for the 1^st quarter of taxable year 2010 had already prescribed (Manila Peninsula Hotel vs. CIR, G.R. No. 229338, April 17, 2024)
8. Whether Petitioner’s claim for refund of unutilized VAT should be denied due to its failure to prove that its sales of services qualify for VAT zero-rating (Amadeus Marketing Phils., Inc. vs. CIR, CTA EB No. 2685, January 24, 2024)
9. Whether Court in Division erred in ruling that assets written off in books of petitioner are transactions subject to Output VAT (Pilipinas Kyohritsu, Inc. vs. CIR, CTA EB No. 2715, February 06, 2024)
10. Whether or not petitioner incurred input tax available for refund (Rema Tip Top Phils. Inc. vs. CIR, CTA EB No. 2688, February 06, 2024)
11. Whether or not the Court erred in ruling that law does not require that Input VAT subject of the claim can be directly attributable to zero-rated sales (Orica Philippines, Inc. vs. CIR, CTA EB No. 2635, February 12, 2024)
12. Whether petitioner is entitled to VAT refund (Atlassian Phils. Inc. vs. CIR, CTA EB No. 2654, February 16, 2024)
13. Whether or not the Court in Division erred in partially granting respondent’s claim for refund representing alleged excess and unutilized input VAT (Philippine Geothermal Production, Inc. vs. CIR, CTA EB No. 2720, February 20, 2024)

WITHHOLDING TAX

1. This creates Alphanumeric Tax Codes (ATC) for Creditable Withholding Tax on Gross Remittances made by electronic marketplace operators and digital financial services providers to sellers/ merchants (Revenue Memorandum Order No. 04-2024, February 05, 2024)
2. This provides guidelines in the processing of claims for tax credit of unutilized creditable withholding taxes on income pursuant to Sec. 76(C) (Revenue Memorandum Order No. 25-2024, July 03, 2024)
3. Whether respondent effectively abated the interest, penalties, and surcharge arising from Withholding tax, Expanded Withholding tax, and Final Withholding Tax assessments (Roxas Holdings, Inc. vs. CIR, CTA EB No. 2672, January 15, 2024)
4. Whether SMIC is entitled to claim for refund of excess and unutilized creditable withholding tax (SM Investments Corp. vs. CIR, CTA EB No. 2707, January 16, 2024)
5. Whether or not CTA in Division erred in ruling that petitioner failed to prove that the Final Withholding Taxes paid by petitioner on the subject dividends are erroneous (Matex International, Inc. vs. CIR, CTA EB No. 2627, January 30, 2024)
6. Whether or not petitioner is liable for Deficiency Income Tax, Expanded Withholding Tax, Final Withholding Tax, and other compromise penalties for taxable year 2014 (Stepan Philippines Quaternaries, Inc. vs. CIR, CTA EB No. 9862, February 28, 2024)

EXCISE TAX

1. This prescribes the updated floor price of cigarette, heated tobacco and vapor products pursuant to Secs. 144 (B) and (C) and 145 (C) of NIRC of 1997, as amended (Revenue Regulations No. 16-2024, September 16, 2024)
2. This amends Revenue Memorandum Order No. 19-2006 regarding the guidelines and procedures for processing of pending claims for tax credit/ refund of Excise Tax paid on petroleum products (Revenue Memorandum Order No. 16-2024, May 03, 2024)

3. Whether the CTA EB erred in upholding the company’s entitlement to refund of taxes paid for importation of aviation fuel (Philippine Airlines vs. CIR, G.R. Nos. 245330-31, April 01, 2024)
4. Whether the company is entitled to refund representing erroneously paid taxes on importing alkylate (Petron Corporation vs. CIR, CTA EB No. 2643, January 12, 2024)
5. Does the Tax Code authorize the collection of excise tax on GSMI’s finished goods manufactured using ethyl alcohol upon which excise tax had already been paid (Ginebra San Miguel vs. CIR, CTA EB No. 2544, January 18, 2024)
6. Whether or not CTA Division erred in ruling that company was able to prove its importations of aviation fuel are used for its transport and non-transport operations (Philippine Airlines vs. CIR, CTA EB No. 2559, March 13, 2024)

LOCAL BUSINESS TAX 

1. Whether or not the trial court resolve a local tax case in order to fall within the ambit of the Court of Tax Appeals’ appellate jurisdiction (National Grid Corporation vs. Municipality of Bayombong, Nueva Vizcaya, CTA EB No. 2795, October 10, 2024)

CAPITAL GAINS TAX

1. Whether Court of Tax Appeals has jurisdiction over petitioner-appellant BSP’s claim for overpayment of Capital Gains Tax, Surcharge and Interest (Bangko Sentral ng Pilipinas vs. CIR, CTA EB No. 2687, February 21, 2024)

TAX ASSESSMENTS

1. This implements Sec. 45 of RA No. 11976 (Ease of Paying Taxes Act), on the imposition of reduced interest and penalty rates for micro and small taxpayers (Revenue Regulations No. 06-2024, April 11, 2024)
2. Whether or not the Preliminary Assessment Notice (PAN) and Final Assessment Notice (FAN) were validly served upon the respondent (Arturo E. Villanueva, Jr. vs. CIR, G.R. No. 249540, February 28, 2024)
3. Whether or not CTA in Division erred in granting Petition for Review thereby canceling the Assessment Notice and Formal Letter of Demand of respondent’s alleged tax deficiency for taxable year 2009 (Executive International Movers, Inc. vs. CIR, CTA EB No. 2667, January 18, 2024)
4. Whether or not the Third Division erred in ruling that petitioner failed to establish that subject imported alcohol products are not locally available in reasonable quantity, quality or price at time of importation (Philippine Airlines vs. CIR, CTA EB No. 2656, January 18, 2024)
5. Whether LOA issued in favor of the Commissioner is valid (Villarica vs. CIR, CTA EB No. 2661, January 18, 2024)
6. Whether the date when the Petitioner obtained knowledge of the judgment to be set aside should be the reckoning of the 60-day period under Rule 38 of Rules of Court (AG Counselors Corp. vs. CIR, CTA EB No. 2607, February 01, 2024)
7. Whether the instant Petition for Review was timely filed before the Court En Banc and whether the Court in Division erred in dismissing the original petition due to failure to prosecute (Bukidnon Second Electric Cooperative vs. CIR, CTA En Banc No. 2553, February 08, 2024)

8. Whether Court of Tax Appeals erred in prohibiting CIR from collecting the assailed deficiency taxes (RCBC Savings Bank vs. CIR, CTA EB No. 2781, February 12, 2024)
9. Whether the First Division erred in the cancellation of petitioner’s tax assessment against respondent (Armadillo Holdings, Inc. vs. CIR, CTA EB No. 2655, February 12, 2024)
10. Whether the CIR violated respondents’ rights to administrative due process (Atlas Precision Environment Corp. vs. CIR, CTA EB No. 2686, February 13, 2024)
11. Whether or not the absence of a valid Letter of Authority and the alleged prescription of BIR’s right to assess rendered the tax assessment against the company invalid (Formula Sports, Inc. vs. CIR, CTA EB No. 2674, March 06, 2024)
12. Whether or not the period to appeal the order of the respondent court has lapsed and the Motion for Reconsideration of said order was filed out of time (Cebu III Electric Cooperative, Inc. vs. CIR, CTA EB No. 2318, April 22, 2024)
13. Whether or not petitioner timely filed its appeal with the Court of Competent Jurisdiction (Services Resources, Inc. vs. Pasig City LGU, CTA EB No. 2719, April 23, 2024)
14. Whether CTA Division erred in ruling that the assessment is void because of lack of LOA and prohibiting the CIR from collecting the assessed deficiency taxes (Diageo Phils., Inc. vs. CIR, CTA EB No. 2702, April 24, 2024)
15. Whether or not CTA First Division erred in ruling that the assessment issued against respondent is null and void (Capitol Steel Corp. vs. CIR, CTA EB No. 2585, April 25, 2024)
16. Whether or not CTA in Division erred in declaring that petitioner’s Motion for Reconsideration was time-barred (RCL Feeders Phils., Inc. vs. CIR, CTA EB No. 2772, April 29, 2024)
17. Whether or not the right of respondent to due process of law was violated when BIR issued the deficiency tax assessment (Rieckermann Phils., Inc. vs. CIR, CTA EB No. 2704, May 13, 2024)
18. Whether the extraordinary period of 10 years based on Sec. 222 of NIRC is applicable (Wellcargo Customs Brokerage vs. CIR, CTA 10817, October 02, 2024)

ADMINISTRATIVE

1. This prescribes the policies and guidelines for the publication of revenue issuances and other information materials of BIR pursuant to Sec. 245(i) of Tax Code, as amended by RA No. 11976 (Ease of Paying Taxes Act) (Revenue Regulations No. 02-2024, February 28, 2024) 
2. This implements amendments on RA No. 11976 (Ease of Paying Taxes Act) on the filing of tax returns, payment of taxes and other matters affecting declaration of taxable income (Revenue Regulations No. 04-2024, April 11, 2024) 
3. This implements amendments on RA No. 11976 (Ease of Paying Taxes Act) on the registration procedures and invoicing requirements (Revenue Regulations No. 07-2024, April 11, 2024) 
4. This implements Sec. 21(b) of Tax Code of 1997, as amended by RA No. 11976 (Ease of Paying Taxes Act), on the classification of taxpayers (Revenue Regulations No. 08-2024, April 11, 2024)  

5. This amends certain provisions of RR No. 10-2006, as amended, relative to the registration of Master Securities Lending Agreement and Global Master Securities Lending Agreement (Revenue Regulations No. 10-2024, June 05, 2024)
6. This amends the transitory provisions of RR No. 07-2024 relative to the deadlines for compliance with the invoicing requirements (Revenue Regulations No. 11-2024, June 13, 2024)
7. This amends Secs. 5 & 6 of RR No. 3-2019, on the validity of Certificate Authorizing Registration (eCAR) and its revalidation (Revenue Regulations No. 12-2024, June 20, 2024)
8. This provides extension of deadlines for filing of tax returns for payment of corresponding taxes due and submission of required documents for taxpayers affected by typhoon “Carina” (Revenue Regulations No. 13-2024, August 08, 2024)
9. This provides rules and regulations governing modes of disposition of seized/ forfeited articles in line with Secs. 130, 131 and 225 of NIRC (Revenue Regulations No. 14-2024, August 14, 2024)
10. This prescribes policies in the mandatory registration of persons engaged in business and administrative sanctions and criminal liabilities for non-registration (Revenue Regulations No. 15-2024, August 15, 2024)
11. This prescribes the presentation of tax clearance prior to final settlement of government contracts (Revenue Regulations No. 17-2024, September 17, 2024)
12. This amends RMO No. 06-2023 prescribing the updated and consolidated policies, guidelines and procedures for BIR Audit Program (Revenue Memorandum Order No. 01-2024, January 10, 2024)
13. This further amends certain provisions of RMO No. 6-2023 providing updated policies for BIR’s Audit Program (Revenue Memorandum Order No. 17-2024, May 20, 2024)
14. This amends certain provisions of RMC No. 37-2024 regarding TIN inquiry through electronic mail (Revenue Memorandum Order No. 20-2024, May 29, 2024)
15. This provides the guidelines and procedures in the processing of claims for credit/ refund of taxes erroneously received or collected or penalties imposed without authority pursuant to Sec. 204 (C) (Revenue Memorandum Order No. 27-2024, July 03, 2024)
16. This further amends RMO No. 24-2007, as amended by RMO No. 22-2009, on the preparation, consolidation, and monitoring of BIR Form No. 1770 (Comparative Monthly Summary of Tax Returns/ Payment Forms Filed) and its prescribed format (Revenue Memorandum Order No. 28-2024, July 11, 2024)
17. This prescribes the policies, guidelines and procedures in classifying business taxpayers pursuant to RR No. 08-2024 (Revenue Memorandum Order No. 37-2024, September 04, 2024)