Success Motivational Quotes 8

The spirit, the will to win,

and the will to excel are the things

|that endure. These qualities are so

much more important than the

events that occur.

- Vince Lombardi

Success Motivational Quotes 7

Courage is facing your fears. Stupidity is fearing nothing.

- Todd Bellemare

Some Local or Foreign Financial Advisors Claiming To Be Connected With, Or Acting For And On Behalf Of Foreign Corporations

Republic of the Philippines
Securities and Exchange Commission
SEC Bldg. EDSA, Greenhills, Mandaluyong City
ENFORCEMENT AND PROSECUTION DEPARTMENT

SEC WARNING

The Securities and Exchange Commission has received information that the following securities/products are being offered, sold and/or distributed in the Philippines by some local or foreign financial advisors claiming to be connected with, or acting for and on behalf of foreign corporations, without the necessary license or permit from this Commission as required by law.
Based on the records at hand, the following securities/products are not registered with the Commission:

ALB Finance BV 9.375 300449 AO PERP
ALB Finance BV 9.375 300449 PERP
Autopistas Delsol 11.5230517MNREG
Banco Panamericano 11 1080716 JJ REG
Ban Hip 11.25 210610 JD REG LK ARS P
Ban Mac 10.75 070612 EXC L KARS P
Blue Ocean (CPP) 11 280612 JD REGS
BNP Capitaland/ Citedev 291208
BNP Allianz/ Axa /Prudential BN07809
Book-A-Million
China Glass Holdings 9.625 120712JJ
China Glass Holdings 9.625 120712JJ
CNC Group
Comtech CRR BV 10 190611J/D
En Japan Inc
First Investment Finance FIN
12.5.290849PER
First Invest Fin 11.625 310349 PER
First Ukranian 9.75 160210 F/A
Fuji Television Network
Fullcast Co Ltd
G Steel PUBLIC CO 10.5 041010 A/O
HSBC (Merinos HALIS SVT) 11.75 080612
Ind Metalurgicas 11.25 221014A/O REG
Independencia 9.875 310117 J/J REGS
JBS SA (Friboi) 10.5 040816 F/A REG

Kabu.Com Securities
LB Mit Fud/Mit Est/ Sum Rea 210709
LB GE US31.5984/ Wal MT DACEL230209
Lupatech 9.875 310749 JAJO REG PERP
Mag Net Inc
Metro Financiera 11.25 160549 FMANREG
Metro Financiera 11.25 160549FMAN
MDM Bank OAA 9.75 210711 J/J
Mitsubishi UFJ Fin
Mizuho Fin Group
NOM (OCBC /UOB/DBS) CAS 270709 17P
NOM Sum Rea/ Miz Fl/ Sum MIT 060709
NOM Mat Elec/ Mit Est CAS 060109
ProfiloTelra 10.75 071211
PromsvyBank 10.75 210711 J/D
RABO Norn Holdg/Sum Rea ROCA 300409
Rede Empresas 11.125 020449 JAJO REG
Resona Holdings Inc
Russian Standard Bank 9.75 011216
Seven + Holdings Co
Sumitomo Mitsui Fin
TMK Capital (OAOTMK) 10 2090711 J/J
Termir Bank 9.5 210514 M/N REGS
XXI Century Investments 10 240510 MN
Yahoo Inc

The public is hereby advised to refrain from entering into any contract of sale, transfer, conveyance of the aforementioned securities/products because their sale, offer to sell and distribution are strictly prohibited by law. The Commission urges anyone who has knowledge or information about any business transaction involving these securities/products to report such activity immediately to the undersigned so that appropriate measures can be taken.

ATTY. LALAINE P. MONSERATE
Officer-in-charge
Complaints and Investigation Division
Enforcement and Prosecution Department
Securities and Exchange Commission
5F SEC Bldg., EDSA, Greenhills, Mandaluyong City
(632) 584-7652 or 5840923 loc 224
ced@sec.gov.ph

Success Motivational Quotes 6

Don't you get it? This very second you could be doing something you love and dream about doing. So do it! NOW!

Success Motivational Quotes 5

To be a leader, you must
stand for something,

or you will fall for anything.

- Anthony Pagano

Lawyer of well-known politicians gets dose of his own medicine, is charged by BIR with tax evasion for unexplained expenditures

Lawyer of well-known politicians gets dose of his own medicine, is charged by BIR with tax evasion for unexplained expenditures

He lawyered for popular politicians for cases covered by Election Laws. Now, he will have to defend himself for committing acts constituting violations of Section 254 and Section 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

Facing criminal charges before the Department of Justice (DOJ) for willfully attempting to evade or defeat payment of taxes and for deliberately failing to supply correct and accurate information in his income tax return for taxable year 2010 is GEORGE ERWIN M. GARCIA. He is also being sued for the payment of deficiency taxes for the said taxable year in the aggregate amount of P37,944,528.12, inclusive of increments.

A lawyer by profession, Garcia is registered as a professional taxpayer at Revenue District Office No. 33, Intramuros-Ermita-Malate with office address/es at G/F Laiko Bldg., Cabildo St., Intramuros, Manila and Rm. 303 Peoples General Insurance Corporation Bldg., Magallanes St., Intramuros, Manila.

The investigation of Garcia was prompted by the information provided by a confidential informant that there is a pending civil case against him wherein he admitted in his Verified Answer that he purchased a condominium unit worth P53 million and described as Unit 43-B The Shang Grand Tower Condominium with three (3) allotted parking spaces at Podium III, Perea St., corner Dela Rosa St., Legazpi Village, Makati City.

Based on information and documents gathered during the investigation covered by a Letter of Authority, Garcia made several payments on the unit worth millions each from 2 February 2010 to 8 June 2010 as evidenced by Acknowledgment Receipts issued by a certain Crispina M. Pastores.

However, despite the acquisition of expensive condominium units, Garcia had declared minimal amounts of gross income in his Annual Income Tax Returns for the years 2004 to 2010, the aggregate amount of which is P4,450,150.00.

Using the Expenditures Method of tax investigation, the BIR ascertained that Garcia substantially underdeclared his income for taxable year 2010. This involves deducting all non-taxable sources of funds and the reported taxable income from total expenditures. Thus, a comparison of Garcia’s reported income of P1,380,000.00 for the year 2010 and his total expenditures in 2010 of P53,348,030.00 yielded a difference of P51,968,030.00 or an underdeclaration of more than 30%.

Under the Tax Code, an underdeclaration of taxable income of more than 30% is considered as substantial underdeclaration and constitutes prima facie evidence of fraud tantamount to tax evasion.

The case against GEORGE ERWIN M. GARCIA is the sixty-fifth (65th) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.

Success Motivational Quotes 4

When you think you can't.. revisit a previous triumph.

- Jack Canfield

Success Motivational Quotes 3

What you declare, you will achieve

BIR “prescribes” criminal case to Makati Med Neurosurgeon for non-issuance of Official Receipts

BIR “prescribes” criminal case to Makati Med Neurosurgeon for non-issuance of Official Receipts

For failing to issue the corresponding official receipts for professional services rendered, a Neurosurgeon of three well-known and established medical centers was criminally charged by the Bureau of Internal Revenue (BIR) today before the Department of Justice for violation of Sec. 264, in relation to Section 237, of the National Internal Revenue Code of 1997, as amended (Tax Code).

Charged was DR. WILLY GO LOPEZ, a medical practitioner specializing in neurosurgery at the Medical City, Makati Medical Center and Cardinal Santos Medical Center. Dr. Lopez is a Filipino Citizen residing at 17 Emilio Jacinto Street, Ayala Heights V, Quezon City.

The criminal complaint against Dr. Lopez stemmed from a complaint-affidavit dated June 18, 2010 for non-issuance of official receipts executed by Spouses Arestophanes C. Salvador and Josephine A. Salvador, parents of Aries Joseph A. Salvador (AJ). The complainants alleged that on at least four (4) occasions, they paid Dr. Lopez a total amount of P164,000.00 for the latter’s professional services but were never issued any official receipt.

To verify the veracity of the complaint filed by the Spouses, Mission Order (MO) No. 00052013 dated August 22, 2011 was issued, placing Dr. Lopez under observation and surveillance.

In the course of the investigation, a BIR revenue officer interviewed one of the patients of Dr. Lopez in the latter’s clinic and found out that no official receipt was issued for the payment of the consultation fee of P1,000.00. After the interview, BIR investigators served the MO on Dr. Lopez.

The aforementioned acts of Dr. Lopez violated the express provisions of Section 264, in relation to Section 237, of the Tax Code which mandate him to issue a receipt for each payment he receives for the professional services he renders.

The case against DR. WILLY GO LOPEZ is the sixty-fourth (64th) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.

Success Motivational Quotes 2

Sometimes things become possible if we want them bad enough.

- T.S. Eliot

BIR “skins” Dermatologist for failure to issue Official Receipts

For failing to issue official receipts for professional services rendered, a Dermatologist was criminally charged by the Bureau of Internal Revenue (BIR) today before the Department of Justice for non-issuance of official receipts in violation of Sec. 264, in relation to Section 237, of the National Internal Revenue Code of 1997, as amended (Tax Code).

Charged was SYLVIA M. HUANG (Ms. Huang), a well-known dermatologist with business address at Suite 201 LPL Condominium, Eisenhower St., San Juan, Metro Manila. Most of Ms. Huang’s patients belong to the middle and upper class of the society.

Pursuant to the afore-cited provisions of the Tax Code, Ms. Huang is mandated to issue a receipt for each payment she receives for the services she renders.

On 23 August 2011, the BIR issued Mission Order (MO) No. MSO2001 00052015 dated August 22, 2011 placing the business activity of the subject taxpayer under surveillance.

Pursuant to the said MO, two (2) BIR investigators entered the clinic of Ms. Huang and posed as patients. Other patients were attended to ahead of them. After one of them had been attended to by Ms. Huang, the former paid the consultation fee but was not issued any receipt to cover such payment.

Ms. Huang’s act of not issuing a receipt violates the provisions of the Tax Code. Based on the results of the investigation, it was clear that Ms. Huang has been issuing receipts to her patients only upon demand despite the mandatory requirement of the law requiring persons subject to an internal revenue tax to issue receipts or sales or commercial invoices.

The case against SYLVIA M. HUANG is the sixty-sixth (66th) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.

BIR “deposits” tax evasion case against Banco Filipino Lawyer for unreported income

BIR “deposits” tax evasion case against Banco Filipino Lawyer for unreported income

The Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a complaint against ATTY. ABELARDO L. APORTADERA, JR. (Atty. Aportadera) for willful attempt to evade or defeat tax, deliberate failure to supply correct and accurate information in his Income Tax Returns (ITRs) for taxable years 2008 and 2009, and deliberate failure to file VAT returns for taxable years 2008 to 2010, in violation of Sections 254 and 255 of the NIRC of 1997, as amended.

Atty. Aportadera is a practicing lawyer with registered address at No. 176 Arroceros, Ermita, Manila. He is the current managing partner of Aguirre Aporatadera Gavero Sandico & Associates law offices.

Atty. Aportadera was one of the “payees” to whom payment was made by Banco Filipino for taxable years 2008, 2009 and 2010 in the list submitted by Mr. Teodoro Jose D. Hirang, Philippine Deposit Insurance Corporation Assistant Vice-President & Deputy Receiver of Banco Filipino Savings and Mortgage Bank (Banco Filipino), in reply to the access to records letter by the BIR.

On the basis of said list, it was discovered that Atty. Aportadera received, in consideration of legal services rendered to Banco Filipino, the amount of P29,499,200.00, P37,184,000.00 and P37,882,280.00 for the taxable years 2008, 2009 and 2010, respectively, as evidenced by documents of payments such as Manager’s Checks, Vouchers, Billing Statements, Official Receipts and BIR Form No. 1604E for the years 2008 to 2010.

BIR investigators further found out that Atty. Aportadera filed his ITRs for 2008 to 2010 but failed to file his VAT returns for the same period.

A comparison of the declarations of Atty. Aportadera in his ITRs for the year 2008 of P25,025,000.00 and for the year 2009 of P25,055,000.00 as against the income payments (net of VAT) he received from Banco Filipino of P26,660,000.00 in 2008 and P33,200,000.00 in 2009 revealed he substantially underdeclared his income by P1,635,000.00 (6.53%) and P8,145,000.00 (32.41%) in 2008 and 2009, respectively.

Under the Tax Code, an underdeclaration of taxable income of more than 30% is considered as substantial underdeclaration and constitutes prima facie evidence of fraud tantamount to tax evasion.

Atty. Aportadera was assessed deficiency income taxes for the two-year period in the aggregate amount of P5,543,781.40, inclusive of surcharges and interests. Furthermore, the BIR assessed Atty. Aportadera deficiency VAT of P20,503,142.40, inclusive of increments, for taxable years 2008, 2009 and 2010. The total tax liability of Atty. Aportadera is P26,046,923.80

The case against ABELARDO L. APORTADERA, JR. is the sixty-seventh (67th) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.

Success Motivational Quotes 1

To accomplish great things, we

must not only act, but also dream,

not only plan, but also believe.

- Anatole France

BIR files charges vs 2 lawyers, 2 doctors

abs-cbnNEWS.com

Posted at 09/15/2011 12:26 PM | Updated as of 09/15/2011 4:32 PM

MANILA, Philippines - The Bureau of Internal Revenue (BIR) on Thursday filed complaints against two lawyers for allegedly failing to pay the right amount of taxes, and two doctors for not issuing official receipts.

Facing tax evasion charges before the Department of Justice were George Erwin Garcia, who served as legal counsel of several politicians, and Banco Filipino lawyer Abelardo Aportadera Jr.

The BIR said Garcia under-declared his annual income in 2010 by nearly P52 million. It said the lawyer declared only P1.38 million gross income during the year, but was able to buy a P53-million condominium unit in Legazpi Village, Makati City.

Aportadera, on the other hand, did not pay over P20 million value-added taxes in 2008 to 2010, and under-declared his income by over P9 million in 2008 and 2009, the BIR said. He was assessed with a total tax deficiency of P26.05 million.

The tax bureau is also going after neurosurgeon Willy Lopez and well-known dermatologist Sylvia Huang for allegedly failing to issue official receipts for their professional services.

In one instance, the BIR said Lopez did not issue receipt for services worth P164,000.

Huang, meanwhile, issued receipts only when patients asked, according to the BIR.

New BIR ITR Form 1702 Revenue Memorandum Circular (RMC) No. 40-2011

RMC 40-2011 Form 1702


Revenue Memorandum Circular (RMC) No. 40-2011 New BIR ITR Form 1702

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New BIR ITR Form 1701 Revenue Memorandum Circular (RMC) No. 40-2011

RMC 40-2011 Form 1701

Revenue Memorandum Circular (RMC) No. 40-2011 New BIR ITR Form 1701

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Revenue Memorandum Circular (RMC) No. 40-2011 New BIR Form 1700

RMC 40-2011 Form 1700


Revenue Memorandum Circular (RMC) No. 40-2011 New BIR Form 1700

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New BIR ITR Form RMC No. 40-2011

RMC_2011-40_RevisedITRs



New BIR Income Tax return ITR Revenue Memorandum Circular RMC No. 40-2011 - July 2011

LANDBANK provincial branches now accepts application for SEC registration of stock corporations

Landbank, SEC tie up to improve corporate registration procedure
By Iris C. Gonzales (The Philippine Star) Updated September 15, 2011 12:00 AM

MANILA, Philippines - The Land Bank of the Philippines (Landbank), a government financial institution and the Securities and Exchange Commission (SEC), the country’s corporate regulator, have started implementing a partnership agreement aimed at improving corporation registration procedures in the Philippines. Landbank yesterday announced that it would start accepting application for SEC registration of stock corporations.

The bank said that starting Sept. 15, all provincial branches of would already be able to accept applications for registration.

The move is part of an agreement with the SEC signed last July.

Under the Memorandum of Agreement (MOA) signed by SEC and Landbank, a stock corporation to be organized can go directly to a Land Bank branch for the pre-processing of its SEC application, verification of the requirements, and payment of the regular filing fee.

The pre-processed application and requirements will be submitted to SEC for the processing and issuance of certificates of incorporation and Stock Transfer Book for release by Landbank to the applicant.

The pilot run of the implementation of the SEC-Landbank partnership started last Aug. 12, 2011 at the Landbank San Fernando La Union Branch.

Landbank president Gilda Pico said the agreement hopes to hasten business registration in the Philippines.

“We look forward to helping streamline the registration process and payment options through branches of Landbank. Through this partnership, Landbank and SEC can contribute to the government’s efforts of promoting businesses and economic activities,” said Pico.

Similarly, SEC chairperson Teresita Herbosa said the project aims to encourage more Filipinos to set up businesses.

“We are confident this project will encourage Filipino entrepreneurs all over the country, especially in areas where Landbank operates, to formally organize their businesses so they can enjoy the benefits of incorporation,” Herbosa said.

Earlier, Finance Secretary Cesar Purisima also said the move would make it easier for investors to do business in the Philippines.

Best Seller Corporation a “hit” for tax evasion by the BIR

September 1, 2011

For substantially under-declaring its 2006 and 2007 gross receipts from its customers, a sub-contracting corporation was charged with tax evasion by the Bureau of Internal Revenue (BIR) today at the Department of Justice for four (4) counts of willful attempt to evade or defeat taxes and four (4) counts of willful failure to supply correct and accurate information in its Income Tax Returns and Value-Added Tax Returns covering taxable years 2006 and 2007, all in violation of Sec. 254 and Sec. 255 of the National Internal Revenue Code of 1997, as amended.

Charged was BEST SELLER MANUFACTURING CORPORATION (Best Seller), a domestic corporation registered with the Securities and Exchange Commission primarily engaged as a sub-contractor of footwear parts and accessories. Its principal place of business is located at No. 2 Esguerra St., Grace Park, Caloocan City.

Also charged was General Manager CHARLIE YAO (a.k.a. Yao Ching) in his capacity as responsible corporate officer of the company.
Sometime in 2008, the BIR received a confidential information denouncing Best Seller for underdeclaration of gross receipts from contracts it entered into with its customers covering taxable years 2006 and 207.
In the course of its investigation, the BIR noted that Best Seller declared in its Audited Financial Statements gross receipts from its contracts of P1,919,969.30 and P3,564,300.97 in 2006 and 2007, respectively.

However, data gathered by the BIR from the company’s customers, including Chowking, Olympian Rubber Products Co., Inc., Universal Robina Corporation and Monde M.Y. San Corporation, showed total gross receipts amounting to P17,138,856.29 in 2006 and P23,701,644.64 in 2007.

A comparison of the above-cited figures disclosed underdeclarations of more than 30% of what was declared in the financial statements amounting to P15,218,886.99 and P20,137,343.67 for 2006 and 2007, respectively.
Under Sec. 248 (B) of the Tax Code, an under-declaration of taxable income by more than 30% of what was declared constitutes prima facie evidence of a false or fraudulent return or fraud tantamount to tax evasion.

As a result of its scheme to underdeclare its gross receipts in its audited financial statements, Best Seller effectively lowered its taxable gross receipts.

Considering the discovered underdeclarations, the BIR assessed Best Seller deficiency Income Tax of P12.65 million for 2006 and P15.33 million for 2007 and deficiency VAT amounting to P4.36 million for 2006 and P5.37 million for 2007, for a total tax liability of P37.71 million.

The case against BEST SELLER MANUFACTURING CORPORATION and its responsible corporate officers is the sixty-third (63rd) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.

BIR issues new Income Tax Returns ITR Form - Revenue Memorandum Circular (RMC) No. 40-2011

Quezon City, 07 September 2011 – As part of its continuing efforts tostreamline its processes, the Bureau of Internal Revenue (BIR) issued RevenueMemorandum Circular (RMC) No. 40-2011 dated September 5, 2011 notifying allconcerned of the new Income Tax Return Forms for individual and corporatetaxpayers that will be used starting this year covering taxable year 2011.

Released under the said RMC were enhanced versions asof June 2011 of BIR Form No. 1700 (Annual Income Tax Return for IndividualsEarning Purely Compensation Income), BIR Form No. 1701 (Annual Income TaxReturn for Self-Employed Individuals, Estates and Trusts) and BIR Form No. 1702(Annual Income Tax Return for Corporation, Partnership and Other Non-IndividualTaxpayer).

The issuance also provides that all juridical entitiesfollowing the fiscal year of reporting are likewise required to use the new BIRForm No. 1702 starting with those covered by fiscal year ending January 31, 2012.

BIR Form No. 1700 is filed by employees except thoseexpressly exempted by law from filing the same and except employees qualifiedunder the “substituted filingscheme.” With the issuance of the new BIR Form 1700, however, pure compensationincome earners whose annual taxable income derived from within the Philippines exceeds P500,000.00 and on which incomethe correct income tax has been correctly withheld are now required to file.Those employees deriving compensation income concurrently from two or moreemployers at any time during a taxable year shall likewise file the saidreturn, including Part IV thereof.

Part IV of the return refers to supplementalinformation on gross income/receipts subject to Final Withholding Tax and grossincome/receipts Exempt from Income Tax.

Also required to file the return but only Part I andPart IV thereof are individuals, estates and trusts whose sole income has beensubjected to final withholding tax in excess of P125,000.00 annually, whetherremitted or not to the BIR and individuals whose sole income is exempt fromincome tax where the total annual (exempt) income exceeds P500,000.00.

For BIR Form 1701, those required under the law tofile the same should also fill up Part VIII thereof. Part VIII of the returnrefers to supplemental information on gross income/receipts subject to FinalWithholding Tax and gross income/receipts Exempt from Income Tax.

The new BIR Form No. 1702 now includes a Section onTaxpayer Activity Profile and a Section on Tax Relief Availment.

New Case Rate Packages from PhilHealth

New Case Rate Packages from PhilHealth -
August 18, 2011

NEW case rate packages for selected medical conditions and surgical procedures will soon be available in institutional health care facilities accredited by the Philippine Health Insurance Corporation (PhilHealth).

According to PhilHealth President and CEO Dr. Rey B. Aquino, "the shift from fee-for-service to case rates for these medical and surgical cases was prompted by developments taking place in the health care industry, most notable of which is the need to provide optimal financial risk protection especially to the most vulnerable groups, including the poorest of the poor."He added that better member appreciation and faster reimbursement of fees to health care providers were also among the major considerations for introducing this new type of provider payment scheme.

The use of case rates is an internationally accepted payment mechanism that serves to package payment for health interventions. Through this mechanism, members will be able to predict how much PhilHealth will be paying for each of the services provided. "Gone are the days when we could not even give a definite amount of benefits for each of these common medical conditions and surgical procedures," Aquino said, adding that "...now, the member is empowered with just the right amount of information he needs for a particular disease or illness."

Among the medical cases and the corresponding package rates are Dengue I (P8,000.00), Dengue II (P16,000.00), Pneumonia I (P15,000.00), Pneumonia II (P32,000.00), Essential Hypertension (P9,000.00), Cerebral Infarction (CVA I, P28,000.00), Cerebro-vascular Accident with Hemorrhage (CVA II, P38,000.00), Acute Gastroenteritis (P6,000.00), Asthma (P9,000.00), Typhoid Fever (P14,000.00), and Newborn Care Package in Hospitals and Lying-in clinics (P1,750.00).

On the other hand, the surgical procedures include Radiotherapy (P3,000.00 per session), Hemodialysis (P4,000.00 per session), Maternity Care Package (MCP, P8,000.00) coupled with the Normal Spontaneous Delivery (NSD) Package in Level 1 (P8,000.00) and Levels 2-4 hospitals (P6,500.00), Caesarian Section (P19,000.00), Appendectomy (P24,000.00), Cholecystectomy (P31,000.00), Dilatation and Curettage (P11,000.00), Thyroidectomy (P31,000.00), Herniorrhaphy (P21,000.00), Mastectomy (P22,000.00), Hysterectomy (P30,000.00) and Cataract Surgery (P16,000.00).

Aquino said the new case rate packages are available for all member-types admitted in any of the accredited institutional health care providers nationwide starting September 1. He, however, emphasized that "...for our Sponsored Program members who are admitted in government hospitals, the "No Balance Billing" (NBB) policy applies, meaning no other fees nor expenses shall be charged to or paid for by the patient-member above and beyond the package rate."

The NBB policy shall also apply to any other member type such as the employed, individually paying and overseas workers, who will avail themselves of the MCP and NCP in all accredited MCP non-hospital providers such as maternity clinics, and birthing homes.

"This policy was approved after a series of consultations with concerned medical societies and other institutional partners. These conditions and procedures were also among the top 49 percent of total claims we paid for over the previous years," the PhilHealth Chief noted. With all of these packages in place, the government agency needs about P3 billion for the next six to 12 months once members start availing themselves of the packages early next month. (END)

Clarification of Issues Concerning the Imposition of Improperly Accumulated Earnings Tax - REVENUE MEMORANDUM CIRCULAR NO. 35-2011

SUMMARY OF REVENUE MEMORANDUM CIRCULAR NO. 35-2011

issued on August 17, 2011 clarifies issues concerning the imposition of the ten percent (10%) Improperly Accumulated Earnings Tax (IAET) pursuant to Section 29 of the Tax Code of 1997, as amended, as it applies to the taxable income earned starting January 1, 1998 by closely-held domestic corporations, except publicly held corporations, banks and other non-bank financial intermediaries, insurance companies and those enumerated under Section 4 of Revenue Regulations (RR) No. 2-2001.

Under Section 29 of the Tax Code, as amended, a corporation that permits the accumulation of earnings and profits beyond the reasonable needs of the business, instead of dividing or distributing said profits, is subject to 10% IAET on the improperly accumulated taxable income (IATI).

For corporations using the calendar year basis, the accumulated earnings under tax shall not apply on improperly accumulated income as of December 31, 1997. In the case of corporations adopting the fiscal year accounting period, the improperly accumulated income not subject to this tax shall be reckoned as of the end of the month comprising the 12-month period of fiscal year 1997-1998.

 

The amount that may be retained, taking into consideration the accumulated earnings within the “reasonable needs of the business”, as determined under Section 3 of RR No. 2-2001, shall be 100% of the paid-up capital or the amount contributed to the corporation representing the par value of the shares of stock. Hence, any excess capital over and above the par shall be excluded.

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

March 14, 2011

REVENUE MEMORANDUM CIRCULAR NO. 35-2011

SUBJECT        :          Clarification   of   Issues   Concerning   the   Imposition   of   Improperly

Accumulated Earnings Tax Pursuant to Section 29 of the Tax Code of 1997, in relation to Revenue Regulations No. 2-2001

TO                   :          All Revenue Officers and Others Concerned

I.     BACKGROUND

This Revenue Memorandum Circular (RMC) is being issued to clarify certain issues relative to the imposition of the 10% Improperly Accumulated Earnings Tax (IAET) pursuant to Section 29 of the National Internal Revenue Code of 1997 (Code), as amended, as it applies to the taxable income earned starting January 1, 1998 by closely-held domestic corporations, except publicly held corporations, banks and other non-bank financial intermediaries, insurance companies, and those enumerated under Section 4 of Revenue Regulations (RR) No. 2-2001.

Under Section 29 of the Code, as amended, a Corporation that permits the accumulation of earnings and profits beyond the reasonable needs of the business, instead of dividing or distributing said profits, is subject to ten percent (10%) improperly accumulated earnings tax on the improperly accumulated taxable income.

II.    DEFINITION OF IMPROPERLY ACCUMULATED TAXABLE INCOME

Section 29(D) of the Code, as amended, defines the term Improperly Accumulated Taxable Income as “taxable income adjusted by:

(1)     Income exempt from tax;

(2)     Income excluded from gross income;

(3)     Income subject to final tax; and

(4)     The amount of net operating loss carry-over deducted;

And reduced by the sum of:

(1)     Dividends actually or constructively paid; and

(2)     Income tax paid for the taxable year.

Provided, however, That for corporations using the calendar year basis, the accumulated earnings under tax shall not apply on improperly accumulated income as of December 31, 1997. In the case of corporations adopting the fiscal year accounting period, the improperly accumulated income not subject to this tax, shall be reckoned, as of the end of the month comprising the twelve (12)-month period of fiscal year 1997-1998.”

The resulting “Improperly Accumulated Taxable Income” is thereby multiplied by 10% to arrive at the Improperly Accumulated Earnings Tax (IAET).

For purposes of this RMC, and in accordance with RR No. 2-2001, the amount that may be retained, taking into consideration the accumulated earnings within the “reasonable needs of the business” as determined under Section 3 of the said RR, shall be 100% of the paid-up capital or the amount contributed to the corporation representing the par value of the shares of stock, hence, any excess capital over and above the par shall be excluded.