- The e-mail address shall be where transactions, applications, letters, requests, papers and pleadings may be processed, submitted and/or filed online. The SEC may likewise send notices, letter-replies, orders, decisions, and/or other documents through said e-mail addresses, and the corporations, associations, partnerships and individuals are deemed to have received those notices, letter-replies, orders, decisions and/or other documents on the date so sent by the SEC.
- The purpose of the cellphone number is for the SEC to send One-Time Personal (OTP) Identification Number which the authorized person will have to input before the e-mail message can be retrieved. This is to ensure that the person accessing the email is the authorized person of the person to receive and retrieve the same.
- Service of notice through this process shall be considered compliance with the notice requirement of administrative due process.
- It provides that every corporation, association, partnership and person under the jurisdiction and supervision of the SEC (“subject persons) shall submit a valid official electronic email (e-mail) address and a valid official cellular phone number within 60 days from the effectivity of the rules
- For future applications and those applications which are still pending primary registration with the Company Registration and Monitoring Department (CRMD), such information should be either indicated during the filling up of the registration forms or submitted within 30 days from the issuance of certificate of registration, license or authority.
- In addition to the valid official e-mail address and official cellular phone number, the subject persons shall also submit a valid alternate e-mail address and valid alternate cellular phone number.
- The official email of the subject persons may be the official or alternate email address of another person’s , provided it must be distinct from the alternate e-mail address of the same persons.
- The e-mail address and cellular phone numbers shall be under the control of the corporate secretary, the person charged with the administration and management of the corporation sole, the resident agent of the foreign corporation, the managing partner, the individual or the duly authorized representative.
- The subject persons shall submit proof of the authorized representative’s authority (i.e. special power of attorney or secretary’s certificate) to control the e-mail addresses and the cellular phone numbers, and to sign and file the submission, authorization and certification provided under this rule.
- Beginning February 23, 2021 onwards, e-mail addresses and cellular phone numbers shall be included in the General Information Sheet (GIS) or Notification Update Form (NUF) regularly filed with the Commission. If a corporation fails to include the e-mail addresses and cellular phone numbers in the GIS or NUF regularly filed with the Commission, such GIS or NUF shall be considered incomplete.
- An authorization or certificate of authorization, authorizing the SEC to send notices, among others, through email addresses and cellular phone numbers provides, for the purpose of complying with the notice requirement of administrative due process.
- If the subject persons are unable to create an e-mail due to the fact that the area/address has no internet access, only the cellular phone number shall be submitted to the SEC. The authorized representative shall issue a certification to that effect. The subject persons shall submit to the SEC official email address within 30 days from the time the area gains access to the internet.
- The SEC shall be notified within 5 days, in case the email address or cellular phone number is changed.
- In case of double filing of e-mail address and cellular phone numbers, the SEC will determine whether an intra-corporate dispute exists. If yes, the SEC will mark “DISPUTED”. The said submission may be unmarked by an order from the appropriate court.
- Penalty for failure to submit e-mail addresses and cellular phone number beginning February 23, 2021 is P10,000.
- For your easy reference, the SEC Memorandum Circular may be accessed
- (SEC Memorandum Circular No. 28 s. 2020, October 27, 2020)
BUREAU OF INTERNAL REVENUE
IMPORTATION OF goods identified as critical products, essential goods, equipment or supplies needed to contain and mitigate COVID-19 FROM JUNE 25, 2020 TO DECEMBER 31, 2020, shall be exempt from VAT, excise tax and other fees AND REQUIREMENT OF AUTHORITY TO RELEASE IMPORTED GOODS; DONATIONS OF SAID IMPORTED ARTICLES TO OR FOR USE OF THE NATIONAL GOVERNMENT AND OTHER QUALIFIED ENTITIES ARE EXEMPT FROM DONOR’S TAX.
- The Secretary of Finance implements the tax exemption provisions under Section 4 (cc) and Section 18 of RA No. 11494 (Bayanihan to Recover as One Act) on the incentives for the manufacture or importation of certain equipment, supplies or goods.
- It provides that importation from June 25, 2020 to December 31, 2020 of goods identified as critical products, essential goods, equipment or supplies needed to contain and mitigate COVID-19, subject to the limitations and restrictions, shall be exempt from VAT, excise tax and other fees.
- The taxpayer availing of the exemption must present a certification from the Department of Trade and Industry (DTI) that the equipment and supplies being imported are not locally available or of insufficient quality and preference.
- The importation hereof shall not be subject to the issuance of Authority to Release Imported Goods (ATRIG) and may be released by the Bureau of Customs without need of ATRIG. The BIR may, however, conduct post investigation/audit on the importations released by the BOC without ATRIG pursuant to these Regulations.
- Donations of these imported articles to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the Government are exempt from donor’s tax and subject to the ordinary rules of deductibility under existing rules and issuances.
- The grant of exemption for the importation of goods in this rules is deemed to be in effective beginning June 25, 2020,
- The value-added tax on all covered and qualified shipments/importations that may have been paid from June 25,2020 up to September 14,2020 shall be refunded, provided that input tax on the imported items have not been reported and claimed as input tax credit in the monthly and/or quarterly value-added tax returns. The same shall not be allowed as input tax credit for purposes of computing the value-added tax payable of the concerned taxpayer/s for the said period.
- inputs, raw materials and equipment necessary for the manufacture of essential goods of medical grade related to containment and mitigation of COVID-19, as determined by Food and Drug Administration – Department of Health (FDA-DOH), whether locally sourced or imported by the registered manufacturer, shall be exempt from value-added tax.
- The sale of finished goods / products under these Regulations, whether locally manufactured or imported, is subject to value-added tax. The sale of inputs, raw materials and equipment referred to these Regulations to a non-holder of “License to Operate” issued by the FDA-DOH is likewise subject to value-added tax.
- For your reference, the regulation may be accessed
- (Revenue Regulations No. 28-2020, 15 October 2020)
COURT OF TAX APPEALS DECISIONS
PHP 2 MILLION TAX REFUND PARTIALLY GRANTED: INVOLUNTARY TRANSFER OF PROPERTY TO THE CITY GOVERNMENT AS A RESULT OF FAILURE TO PAY REAL PROPERTY TAX IS SUBJEC TO CAPITAL GAINS TAX BUT EXEMPT FROM DOCUMENTARY STAMP TAX.
- The CTA denied the taxpayer’s refund of CGT but allows refund of DST in an involuntary sale of property to the government.
- Under the law, a capital gains tax is imposed on the gains presumed to have been realized in the sale, exchange or disposition of lands and/or buildings held as capital asset.
- In this case, the subject property was auctioned by the city of the government due to the owner’s failure to pay the real property tax. In the absence of bidder, the property was sold to the city government. Thereafter, the taxpayer failed to exercise its right of redemption, therefore, the ownership was transferred to the city government.
- Despite the involuntary nature of the transfer, there is no question that ownership was transferred to the city government through sale, exchange or disposition within the purview of the tax law.
- As a general rule, DST is imposed on all conveyances, deeds, instruments or writings whereby any land sold is transferred to the purchaser. By way of exception, all certificates, documents and papers covering sale of delinquent property to the province, city or municipality shall be exempt from DST.
- In this case, since the buyer is the city government, the involuntary sale shall be exempt from DST.
- Thus, refund of CGT was denied, but refund of DST was granted (City Government of Valenzuela v. Dulay, CTA Case No. 9872, September 17, 2020)
PHP 92 MILLION EXCESS AND/OR UNUTILIZED CREDITABLE INPUT VAT DENIED;
All Renewable Energy Developers are entitled to zero-rated VAT on its purchases of local supply of goods, properties and services needed for the development, construction and installation of plant facilities.To avail of the incentives, the following documents must be submitted: DOE Certificate of Registration, Registration with the Board of Investments; and Certificate of Endorsement by the DOE, on a per transaction basis.
- The CTA denied the taxpayer’s refund of excess and/or unutilized creditable input VAT for failure to present Department of Energy’s (DOE) Certificate of Endorsement.
- All Renewable Energy Developers are entitled to zero-rated VAT on its purchases of local supply of goods, properties and services needed for the development, construction and installation of plant facilities. To avail of the incentives, the following documents must be submitted:
- DOE Certificate of Registration
- Registration with the Board of Investments; and
- Certificate of Endorsement by the DOE, on a per transaction basis
- The foregoing documents must all be presented, otherwise, the transaction between the concerned RE Developer, as purchases, cannot be treated as subject to VAT zero-rating.
- In the instant case, the taxpayer failed to present Certificate of Endorsement by the DOE on a per transaction basis. Therefore, the taxpayer’s sale to the RE Developer cannot be considered as subject to VAT zero-rating.
Thus the claim for refund of excess and/or unutilized creditable input VAT was denied. (Vestas Services Philippines, Inc. v. CIR, CTA Case No. 9604, September 16, 2020)