WoMeN iN busiNess - Planters Development Bank

12
SME focUS
tAxAtIon
nEW RULE on tAx dIScLoSURES
by l i nA p. f i g u e r oA
By this time, most companies are already aware of the new requirement imposed by BIr revenue
regulations no. 15-2010, which states that notes to the financial statements should disclose the
following detailed tax information:
The amount of vAT output tax declared during the year and
the account title and amounts upon which these were based.
If there are zero-rated or exempt sales, a statement to that
effect and the legal basis therefore
The amount of vAT input taxes claimed broken down into:
• beginning of the year
• current year’s domestic purchases such as: goods for
resale, manufacture or further processing; goods other
than for resale or manufacture; capital goods subject to
amortization; services lodged under cost of goods sold;
and services lodged under other accounts
• claims for tax credit/refund and other adjustments; and
• balance at the end of the year
The landed cost of imports and the amounts of customs duties
and tariff paid or accrued thereon
The new rule took effect in December
of 2010. These disclosures
shall be in lieu of the schedule of
taxes and licenses that was previously
submitted as an attachment
to the income tax return (iTr).
The Bir and the Department of
Finance have confirmed that the
regulations will be implemented
and no deferment is being considered.
as such, taxpayers and
auditors are hoping that a revenue
Memorandum circular could be
issued to address their concerns
on how the requirement shall be
implemented. So far, none has been
issued. Most clarifications can only
be culled from newpaper releases
and from various fora where the
commissioner or other Bir officials
have spoken.
The most immediate concern is
probably which FS will be covered
– the FS that will be issued on or
after December 28, 2010 or the FS
covering fiscal year ending after
The amount of excise taxes classified per major product category
Documentary stamp tax (DST) on loan instruments, shares of
stock and other transactions subject to DST
All other taxes, local and national, including real estate taxes,
licenses and permit fees lodged under the taxes and licenses
account both under the Cost of Sales and operating expense
accounts
The amounts of withholding taxes categorized into compensation,
creditable and final
Periods covered and amounts of deficiency tax assessments,
whether protested or not
Tax cases in court or other bodies outside of the BIr, at whatever
stage, and amounts involved
this date. in several instances, the
commissioner has clarified that FS
for taxable year ended December
31, 2010 will be covered. it will also
apply to FS of prior fiscal periods
that have not yet been finalized
or submitted —this is going to be
messy since it is likely that the audit
has already been completed.
and what does the Bir intend to
do with these additional disclosures?
We are all aware that most of these
information are already declared by