Atty. Irwin C. Nidea Jr.

How rare is it to get struck by lightning twice? Google says it’s around one in nine million. Does it have the same probability as a taxpayer being served with a Letter of Authority not once but twice for the same taxable year? I would say that the odds are probably in favor of taxpayers being served two LOAs. But is the service of more than one LOA for the same taxable year justified under the law? Are there remedies available to taxpayers who will be awaken by the same nightmare twice?

Tax refunds are strictly construed against the taxpayer. This is the general doctrine that is followed by the courts. A taxpayer must prove every minute detail of its claim. It must show all the invoices, receipts and books of account to prove the erroneous or overpayment of tax. Otherwise, its claim for refund will be denied because of missing or defective documents. Is the doctrine of strict construction against tax refund absolute?

The Supreme Court (SC) in a recent decision has defined the income source and the situs for tax purposes of satellite communication. This decision is of particular interest because the legal principles that it espouses may be applicable to the digital economy.

The law creating the Court of Tax Appeals provides that no appeal taken to the CTA from the decision of the Commissioner of Internal Revenue shall suspend the payment, levy, distraint, and/or sale of any property of the taxpayer for the satisfaction of his tax liability as provided by existing law: Provided, however, that when in the opinion of the CTA the collection by the CIR may jeopardize the interest of the government and/or the taxpayer, the Court at any stage of the proceeding may suspend the said collection and require the taxpayer either to deposit the amount claimed or to file a surety bond for not more than double the amount with the Court.

The critical role of renewable energy in humanity’s future is more pronounced more than ever. El Niño will be declared by Pagasa soon. The scorching heat has forced the Department of Education to consider shortening class hours. It is not an ordinary summer heat that we are experiencing right now. The sun is bringing something extra.

Once upon a time, the BIR issued a revenue regulation (RR) that requires broker dealers to divulge personal information of their clients such as TIN, birthdate, and address. It anchored its directive from the Tax Code where the Commissioner may mandate anyone to reveal information necessary in the performance of his functions. The said RR is a test on how far the Commissioner can stretch this power. If upheld, the floodgates will be opened, and everyone’s personal information will be out in the cold.

Love is in the air. But tax is forever. My daughter will cringe if she sees this.

Jurisprudence on VAT has evolved over the years. The continuous change in interpretation by the courts on the same section of the Tax Code (Section 112) has inflicted wounds that never healed, especially on claims for refund where wounds are always fresh.

Our courts have been consistently protecting the due process rights of taxpayers. Assessments have been declared void in many cases for failure by the BIR to observe taxpayer’s rights. For instance, if the revenue officer who conducted the tax examination is not cloth with a letter of authority (LOA), the tax assessment is considered void. Also, it is now well settled that tax examiners have the duty to give their reasons for denying the protest to a final assessment notice. Failure to do so would make a tax assessment void. But in one decision, the Supreme Court curiously hinted that a tax assessment although not void, may still be considered unenforceable. How can this happen?

The sun, wind and ocean are inexhaustible. So, no matter how many times you use their energy, they will never be diminished or contained. This is why the Department of Justice (DOJ) and the Department of Energy (DOE), rising to the call for clean energy and as a positive response to fight climate change, have resolved to interpret Section 2, Article 12 of the 1987 Constitution in favor of our one and only planet Earth.

Tax compliance is an important part of a company’s day to day operations. There are many filing dates to monitor. Value-added tax, documentary stamp tax, excise tax, withholding tax, quarterly and annual income tax for example, have different filing deadlines. A company does not merely file a tax return but is also supposed to determine and compute the correct amount of tax to be paid, have it approved by management, and coordinate with the bank for the release of money to the Bureau of Internal Revenue (BIR). What if a company timely files a tax return but fails to pay on time? What is the penalty? What is the remedy of a taxpayer when this happens?

The Industrial Revolution occurred more than a century ago, yet the anchor of development remains the same. At the surface, we have come a long way. Transportation has reached new height, communication has connected continents, and technology has evolved multiple folds. However, at the interior of all this innovation, we will find ourselves energized by the same source energy (gas, oil, or coal) that fueled the Industrial Revolution.

DO you want to finally settle your tax liability and do away with the stress of dealing with the revenue officers of the Bureau of Internal Revenue (BIR)? The easiest way is for you to pay your alleged deficiency tax in full as computed by the BIR. But there is a cheaper way. You can file for a compromise and just pay at most 40 percent or 10 percent of the basic tax that is being assessed.

Our country is at a crossroads, for better or for worse. Taxpayer’s rights are in the middle of it. I hope the incoming administration recognizes how these rights are being threatened.

The Bureau of Internal Revenue (BIR) has been aggressive in its collection schemes, which in my opinion are trampling upon the constitutional right to due process of every Filipino. It is not a secret that the BIR has been issuing warrants of distraint and levy against the bank accounts and properties of taxpayers that have pending tax assessments. Collection proceedings are pursued, bank accounts are garnished, and properties are sold in public auction even if a taxpayer has correctly, timely and properly filed an appeal with the Court of Tax Appeals (CTA).

Our country must compete with our neighbors in enticing foreign investors. So, economic zones were established in different parts of the country. The Philippine value-added tax system also followed the cross-border doctrine. Under this doctrine, no VAT shall be imposed to form part of the cost of goods destined for consumption inside the economic zones. A fiction was created where a sale to an enterprise that is in the economic zone is akin to a sale made to a foreign country—a zero percent VAT is imposed. This gave foreign investors the assurance that whatever is sold by a company that is in the customs territory to a company located inside the economic zone is free of VAT.

Our country needs to attract foreign investments if we want our economy to grow. This would mean creation of more jobs and business opportunities for our people. A foreign corporation can establish its presence in the country in many ways, i.e., regional operating headquarters (ROHQ), regional headquarters (RHQ) and representative office, among others.