Refusal to Issue Invoice and Official Receipt

BANKS WHO REFUSED TO ISSUE INVOICES/RECEIPTS
by Emelino T Maestro, Father of Tax Accounting, Tax Guru
Dec 20, 2013, #NonVATinvoiceNonVATreceipt

Banks and other financial intermediaries that are registered with the Bangko Sentral ng Pilipinas are required to issue the following (RR 18-2012), viz;

NON-VAT SALES INVOICES - for purposes of Percentage Tax pursuant to Section 116 of the NIRC, as amended, it is a written account evidencing the sale of goods and/or properties issued to customers in an ordinary course of business, whether cash sales or on account (credit) which shall be the basis of the Percentage Tax liability of the seller.

NON-VAT OFFICIAL RECEIPTS - for purposes of Percentage Tax pursuant to TITLE V of the NIRC, as amended, it is a proof of sale of service and/or leasing of properties which shall be the basis of the Percentage Tax liability of the seller. It is a written admission or acknowledgment of the fact that money has been paid and received for the payment or settlement between persons rendering services and its customers.

However, there are reports that the BIR Regional Directors and Revenue District Officers are encouraging these banks not to issue NONVAT official receipts for the interest payments made by its client-borrowers. Likewise, they also instructed not to issue NONVAT sales invoices for the sales of real (land) and personal (car) properties that they acquired through forfeiture. Accordingly, the Philippine Government is losing revenue for the alleged manipulation and misrepresentation being knowingly perpetuated by these banks and other financial intermediaries and their cohorts who are RDs and RDOs…

COA, Ombudsman and CSC must look into this mess and conduct a preliminary investigation for the Philippine Government is losing, by way of disobeying RR 18-2012, millions of revenue.

How to help the Philippine Government? All taxpayers paying any fee or interest on borrowed amounts from banks and the likes should ask for NonVAT official receipts which can be used to substantiate a deductible expense.

You're invited….

… Tax Accounting for Retailer, Wholesaler, Dealer, etc
Venue…. SEDA Hotel, Davao City
Jan 20, 2014…. 2-5 pm
Jan 21, 2014 … 9-12 am
Jan 21, 2014 … 2-5 pm

Venue …GREENLEAF Hotel, General Santos City
Jan 23, 2014…. 2-5 pm
Jan 24, 2014 … 9-12 am
Jan 24, 2014 … 2-5 pm

Pay early to pay a lesser amount…
For details, please call Juliet and Eric
02-439 3918
02-921 6107
0998-979 3933
0922-802 0922

Free 7 day tax consultation on topics related to BIR electronic letter of authority, deficiency tax assessment and tax mapping operations to those who will register and pay on or before January 10, 2014, 5pm

DIVINE GRACE FRESCO
PRESIDENT, ETM TAX AGENT OFFICE (ETM-TAO), INC
Unit 419, Corporate 101, Mother Ignacia, Quezon City

Thanks for passing this to others..

Injudicious Modus Operandi (BIR) of Revenue Officers

Newest and Injudicious Modus Operandi of Revenue Officers
by Emelino T Maestro, Father of Tax Accounting, Tax Guru
Dec 19, 2013, #BIRfalsereturnsurcharge 

According to Section 203, National Internal Revenue Code, the BIR has 3 years from the date the return was filed to make an assessment of a tax. If the BIR through its revenue officers (RO) failed to do the same, the taxpayer is off the hook in receiving a deficiency tax assessment and thus, he already avoided to be criminally prosecuted and harassed.

Conniving with Regional Directors and Revenue District Officers having unusual moral values, ROs are/werer issuing left and right deficiency tax assessments. These assessments contained figures and allegations that are not even supported by facts and laws or are/were based on their presumptions and caprices. Disturbing so much, they are showing that the returns filed by taxpayers who are under investigation and their tax case are prescribing are false and fraudulent. Or, in other words, the assessments contained the dangerous 50% surcharge.

Unacceptable is also the action of his superior specially the Regional Director and the Revenue District Office who are cuddling and promoting and tolerating this kind of injudicious acts and behaviours. They too should be removed from office.

Because this approach became so effective in the case of PacMan and in the area of GenSan and Zamboanga City, it is therefore being deliberately used nationwide.

How to fight back? Taxpayers should unite and expose these malicious intention because this new and injudicious modus operandi would only benefit the ROs. The RO, as he is saying in issuing the hastily made assessment notices, is just protecting the interest of the Philippine Government. No, he is not doing this to protect the Government but to cement his place inside the BIR for RO who failed to finish his investigation within 180 days or before the return filed would prescribed shall be removed from the service or transferred to the undesirable Districts of the BIR.

YOU'RE INVITED….

Topic…TOP SECRETS IN UNDERSTANDING A BIR ELECTRONIC LETTER OF AUTHORITY

* Venue: Boracay Mandarin, Kalibo Aklan
* Time: 9am-12pm
* Day: January 23, 2014

* Venue: Seda Centrio, Cagayan De Oro
* Time: 9am-12pm
* Day: March 14, 2014

Topic…..TAX MAPPING

* Venue: Boracay Mandarin, Kalibo Aklan
* Time: 2-5pm
* January 23, 2014

* Venue: Seda Centrio, Cagayan De Oro
* Time: 2-5pm
* Day: March 14, 2014

For details pls. call Mario @
(02) 440-4816,
(02) 921-6107,
(02) 439-3918,
(0998) 9793922

Those who will register and pay early shall be given a free 7-day consultation for the above topics and 20% discount for the preparation of a reply or protest against any BIR notices such as tax mapping, surveillance, inventory taking, deficiency tax assessment notices.

Early payment should be first made before the said discount and free consultation shall be given.

DIVINE GRACE FRESCO
PRESIDENT
ETM TAX AGENT OFFICE (ETM-TAO), INC
Unit 419, Corporate 101, Mother Ignacia, Quezon City
0922 801 0922

KIM HENARES SHOULD BE HELD LIABLE FOR THE UNCOLLECTED 300B DELINQUENCY TAXES

Kim Liable to 300B Delinquent Accounts

by Emelino T Maestro, Father of Tax Accountant, Tax Guru

Dec 16, 2013 #BIRdelinquentaccounts

Last Sunday's headline was BIR failed and still fails to collect 300B worth of internal revenue taxes (per COA-report).

Kim who is the current BIR Commissioner reasoned out that this amount came from previous administrations (GMA, ERAP, RAMOS, etc)..Be they might be, her justification is out of context and totally comical.

As a responsible revenue officer she has a job to inventory-take what are to be collected immediately, what are the potential collectibles and what are protested deficiency tax assessments.

ETM believes that she is only escaping the legal duties that the law vested in her shoulders. Please be reminded that 3 and a half years had passed by but she and her fellow revenue officers deliberately failed and ignored and are still failing and ignoring to collect the said amount at the expense of the Filipino people. This may be called 'misfeasance and nonfeasance' in a grand scale. And, revenue officers may face criminal and administrative penalties of acting incorrectly and irregularly and not acting at all on the tasks at hand. COA must file these charges at the Office of the Ombudsman for criminal case and Civil Service Commission for administrative case. Moreover, any taxpayer may also file the same charges against Kim and other revenue officers at the same forums.

Taxpayers should unite to fight all incompetencies and nonfeasance.

A course in TAX ACCOUNTING FOR RETAILER WHOLESALES, DEALER AND DISTRIBUTOR shall be held at Davao (Jan 20-21) and Gensan (Jan 23-24).

Contact details:

0998 979 3922

0922 801 0922

Register early to avail the PROMO RATE.

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POST EMPLOYMENT PROGRAM, Your survival kit if you will be forcefully separated from your work

This may happen to you.

The management already told you, ‘Pack up. The company no longer needs your services. Get your final check now at our Cashier’s Office.”

Yes, ETM knows that you are too young to retire because you have a family to feed, a housing loan to repay and have kids studying in private schools. And, you are too old to get a new job that offers the same compensation package that you are receiving now.

Scenario planning plays a vital role in preventing a Yolanda-type disaster to happen. This is sometimes called ‘midlife crisis.’ According to NSO’s statistics, such crisis is a happy-home wrecker, a reason to take one’s life and a justification to be dependent on illegal drugs and other vices

What is a POST-EMPLOYMENT PROGRAM? A action plan. A fallback. A cushion. If the syndrome ‘TOO YOUNG TO RETIRE AND TOO OLD TO BE EMPLOYED’ happens, you would have a free flowing source of income that would sustain your daily needs, repay your loans and can still help you send your kids to schools.

Who are qualified to take it? Those who have a degree in Law, Arts, Commerce and Business Administration, preferably those who have no PRC-license, and the only source of livelihood anchored to his one and only employer is strongly encouraged to take it.

Current scenario! Alarming as it is. The market place today is flooded with lawyers and CPAs. Their numbers already exceeded the demand which is one of the reasons why you would be bumped off of your comfortable office seat by a newly passed one who may provided the management the same results as you are giving it but at the fraction of the compensation that you are receiving. 

Because of the Bureau of Internal Revenue’s tightened rules, the knowhow of lawyers and CPAs as far as taxation is concerned is becoming irrelevant and immaterial. And, this area/field of expertise that is taxation is your key not only to increase your value in your company but also will give you an opportunity to harness your potential as an entrepreneur. 

Before you can be trusted by others either as a competent Tax Accountant or a reliable Tax Consultant, you have to provide them with relevant evidence that would elicit a favorable action. It is good to remember that this evidence must not be too tasking and time-consuming to get.

A TAX AGENT LICENSE, for example, which is being granted by the Bureau of Internal Revenue (BIR) is best to be secured while you are yet to become a CPA or a lawyer or you are NOT a CPA or a lawyer for its requirements are too easy to comply with.

Unlike in the CPA field where you need to pass its Board Exams and be employed as an apprentice for the period of three (3) years before you would be allowed to practice it, in Tax Agent Practice, an eighteen (18) credit hours of special training, seminars or short term courses in National Internal Revenue Code (taxation) on top of the degree either in Arts, Commerce, Business Administration or Law is only what you need. Without it, the BIR would neither accept nor evaluate your Application for Tax Agent (BIR Form No. 1916).

What is a TAX AGENT? He is an individual who offers his important tax services for a fee to others. His jobs includes the preparation and certification of returns, statements and other papers, representation of a client before the BIR and drafting of reports, protests and the likes. His professional fee may range from 2,000-25,000 pesos per consultation or 150,000- more than a million pesos per tax case. If you wish to have an electronic copy of the BIR-rule governing the practice of Tax Agents and its application form, feel free to submit a request via KATAXPAYER FACEBOOK. 

There is no age limit required in securing this prestigious Tax Agent License.

The two (2) initial courses that you must undergo are, viz;

A. Tax Accounting 

COURSE DESCRIPTION

Many taxpayers confirmed that the use of GAAP (now known as PFRS) created more tax troubles, penalties and health deterioration. Recently, The National Society of Accountants in the United States of America says, “The cost of preparing generally-accepted-accounting-principles-based financial statements is EXCESSIVE and in many cases UNNECESSARY. Translating tax return information into a financial statement format can be a COST EFFECTIVE strategy.” which means that YOU DON'T NEED TO USE AND/OR BE MANIPULATED/FORCED TO USE THE GAAP/PFRS.

The Bureau of Internal Revenue's position between GAAP and TAX ACCOUNTING can be deciphered from "The recording and recognition of business transactions for financial accounting purposes, in a majority of situations, differ from the application of tax rules on the same transactions resulting to disparity of reports for financial accounting vis-a-vis tax accounting (RR 8-2007). In case of differences, the provisions of the Tax (accounting) Code shall prevail (RMC 22-2004). Therefore, it is the financial statements which is in conformity with the Tax Code that should be attached in the filing of Income Tax Return (BIR Ruling No. M-111-2006)."

Tax Accounting has three (3) layers which would start at the value added tax accounting, then would be followed by withholding tax accounting and would end up with income tax accounting. All of them shall comprehensively tackle the three (3) important requirements of the Tax Code which the BIR expects you to be knowledgable of. They are document accounting, book-entry making and timely-and-correct report-filing.

Accounting	Unit
Value added tax	3
Withholding tax	3
Income tax	3

B. Tax Consulting

INTRODUCTION

The United States of America’s Armed Forces is literally employing the tactics known as ‘preemptive strike’. It is based on the principle that an enemy is planning a devastating attack against the lives, liberty and livelihoods of its citizens.

In taxation, particularly in the Philippines, eLA, LN and SDT have a very disastrous and damaging consequences on the lives, liberty and livelihood of its recipient-taxpayers (usually their effects are similar to what Typhoon Yolanda did in the Visayas).

To control and contain their aftermath, potential recipients and practicing consultants must know how to prepare/issue a preemptive strike. Thus, the first approach is to clearly and completely understand them.

COURSE DESCRIPTION

A. KNOWING eLA

1. What does a BIR eLetter of Authority (eLA) mean? 
2. What is so frightening about it?
3. How to overcome fear that it brings?
4. What story it tells?
5. What rights, privileges, obligations and benefits does it create?
6. How to use it against BIR officials/to your advantage?
7. How to properly manage/handle it? 
8. What rules govern it?

B. COMPREHENDING LN

1. What is a Letter Notice (LN)?
2. What beauty and benefits does it bring?
3. How to use the rules that created it to protect you from high deficiency VAT/income tax assessment, Oplan Kandado, and tax evasion charge?
4. What important actions are needed to avoid receiving it again?

C. UNDERSTANDING SDT

1. What is a Subpoena Duces Tecum (SDT)?
2. Who is/are allowed to approve/issue it? 
3. Who in particular is/are required to be SDTed?
4. Should it be feared? Ignored?
5. What are the best ways to overcome it?
6. What are its scope and coverage?
7. What are your rights and privileges under the SDT proceedings?
8. How to use it to your advantages? 
9. How to properly handle it?

EXPECTED OUTCOMES

1. To be able to understand the legal and regulatory requirements that cover/govern the eLA/LN/SDT

2. To be able to examine and evaluate their disadvantages and advantages

3. To be able to harness and use their powers, disadvantages and advantages to your benefits

4. To be able to protect/promote the rights and privileges of a taxpayer

5. To be able to extinguish without the unnecessary hindrance and unwanted expenses the obligations that they created

6. To be able to read and comprehend their content and context

7. To be able to identify and determine the crimes that are being deliberately employed by BIR officials

8. To be able to develop a tax audit planning, technique or strategy that would deprive BIR officials to harass and oppress you

Consulting	Unit
eLetter of Authority	3
Letter Notice	3
Subpoena Duces Tecum	3

CERTIFICATE OF SPECIAL TRAINING LEVEL 101 (Understanding Tax Accounting as well as eLetter of Authority, Letter Notice and Subpoena Duces Tecum) with 18 credit hours shall be issued to those who successfully completed the 2 courses.

For the training/investment/enrollment fee and the place, time and date of the above courses, feel free to call Manila Office

437 4027	921 6107
440 4816	330 2874
439 3918	425 9225
0998 979 3922	0922 801 0922

VISIT/LIKE.. KATAXPAYER FACEBOOK

EMELINO T MAESTRO

FATHER OF TAX ACCOUNTING

TAX GURU

RR 18-2013... A pain in the taxpayer's neck (New Rules in Assessing a Tax)

New BIR Rules on Issuing and Protesting Assessments
by Emelino T Maestro, Father of Tax Accounting, Tax Guru
"Small and simple crime that is habitually performed nationwide is the biggest crime of all."

Here are the gists of RR 18-2013
1. Notice for Informal Conference (NIC) was removed. Thus, you shall no longer receive such Notice from the Revenue District Officer
2. After an eLetter of Authority is served, expect that a Preliminary Assessment Notice (PAN) shall be prepared and served.
3. The PAN shall state the fact and the laws from which the deficiency tax assessment is derived. Otherwise, the such assessment is to be considered 'Void'
4. A protest should be made within 15 days from receipt of the PAN otherwise a FLD/FAN shall be prepared and issued.
5. The protest may either be a request for reconsideration or reinvestigation which you must clearly stated in the body of the protest.
6. Although a protest against PAN is lodged on time, still FLD/FAN shall be prepared and issued which will give you a thirty day period to protest it (again?)..{ETM recommends that instead of filing a protest against PAN, a request for extension to file such protest must be prepared and submitted in order to buy time}
7. Failure to dispute all allegations in the said assessment, the amounts shown therein shall become final and collectible.
8. Failure to supply the facts and the laws from which the protest is derived, the amounts shown in such assessment shall become final and collectible
9. Failure to dispute some issues in the said assessment, the amounts pertaining to undisputed issues shall become final and collectible.
10. Failure to submit all relevant records in support of the protest shall make the amount due thereon to become final and collectible.
11. Commissioner shall not accept a request for reinvestigation but only request for reconsideration

On December 23, 2013 at La Salle Campus, RCBC Plaza, Makati City, a open forum on how to deal with this new rule shall be held... ALL ETM STUDENTS, CLIENTS AND FRIENDS ARE INVITED TO ATTEND. Registration and payment of P1,120.00 investment fee shall be on or before December 17, 2013. The room shall accommodate 64 pax. Bring your own snack, pencil and paper. Be informed, be punctual. Starts at 2pm and ends at 5pm

For details, please call
Dhen 0922 801 0922,
Sonia 439 3918,
Juliet 921 6107
Eric 0998 979 3922
Email Katax at kataxpayer@gmail.com

DISALLOWED DEPRECIATION & INPUT TAX, MAGNET TO FRINGE BENEFIT TAX

Disallowed Depreciation & Input Tax, FBT Magnet

Emelino T Maestro, Father of Tax Accounting, Tax Guru

According to the BIR Commissioner, if you would purchase a 2.4 million-peso vehicle which is not to be used for the delivery of goods but for the use of a certain personnel, even if you would charge portion of its wear and tear, knowingly called 'depreciation' to your taxable income, it shall not be allowed. This means that you shall have an income tax disadvantage of 720,000 pesos for the duration of the useful life of the said vehicle. Or, in other language, your income tax payments is more than 720,000 pesos than the usual. Furthermore, if you paid 12% VAT for the said vehicle which is more or less 288,000 pesos, this input VAT shall not be allowed as a deduction from your output tax which means that you would shell out an additional amount similar to the VAT attributable to the purchase of the said vehicle. Finally, if you would allow your employee to use the said vehicle for his/her personal use, you are deemed to pay fringe benefit tax.

If you want to know how to get around with these stringent rules, please buy any book of ETM and he would email to you the ways to get around with the same.. Only the buying that is done within November 16 - 30, 2013 (8a - 6p) shall be entitled to receive the answer/solution.

For details, please coordinate with Len

email … jocelyn@maestrotaxation.org

mobile … 0922 862 0922

phone … 02 439 3918

office … Unit 419, Corporate 101, Mother Ignacia, QC

Declaration of Loss Due to Yolanda

To all victims of Super Typhoon Yolanda
Our prayers are for your safety and immediate recovery
by Emelino T Maestro, et. al.

To help and assist taxpayers and businesspeople who were greatly affected by Yolanda, ETM and his group would help them comply with the BIR requirements of reporting the lost of their inventories, properties, records and books so that if they are under BIR investigation or would be investigated by BIR for the 2013 and prior years, they would have a proper and complete papers to show the devastating financial effects of Yolanda to their lives and livelihoods.

Our President, Divine Grace Fresco and our Action Man, Jose Filomar Bas, would gladly help and assist you in documenting your losses. Please be reminded that the BIR-rule requires those who are affected in anyway to file the said documents within 30 days from the date the disaster. Thus, you have until December 11, 2013 to comply with the mandate of the law of the State.

Our telephones are 02-9216107, 02-4393918, 0998-9793922 and 0922-8010922. Our assistance is free of charge.

We felt so sorry for the tragedy that our fellow Filipino and residents of the areas being damaged by Yolanda experienced. Again, we pray for your safety and immediate recovery.

Thanks for reading this and passing this message to those who are in need.