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RMC No. 48-2011 dated October 6, 2011 DST on Intercompany Advances

  Highlights Section 180 of the Tax Code as amended discussing the stamp tax on bonds, loan agreements, promissory notes, bills of exchange, drafts instruments and securities issued by the Government or any of its instrumentalities, deposits substitute debt instruments, certificates of deposits bearing interest and others not payable on sight or demand in conjunction with Section 173 of the 1993 NIRC.
  In the case of Commissioner of Internal Revenue vs. Filinvest Development Corporation, G. R. No. 163653 and 167689 dated July 19, 2011, the Supreme Court held that instructional letters, as well as journal and cash vouchers, evidencing intercompany advances extended to affiliates in 1996 and 1997 qualified as loan agreements, and are subject to DST imposed under Section 180, in relation to Section 173 of the old Tax Code, as implemented under Sections 3(b) and 6 of RR No. 9-94.
  Accordingly, all employees engaged in the audit and review of audit cases are directed to assess deficiency DST, if warranted, on these kinds of transactions.

RMC No. 48-2011 dated October 6, 2011
DST on Intercompany Advances 

1 comment:

  1. I would like to ask when is the effectivity of this RMC 48-2011? Is advances from affiliates covered prior to October 2011 cover or after it was published?


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