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Vat Refund And Tax Credit
Summary
Taxpayers must ensure unutilized input VAT for zero-rated sales before filing quarterly returns. Refund or tax credit applications must be filed within two years from the taxable quarters end. Filing beyond this period results in losing the right to claim. The BIR has 90 days to review applications, and inaction is deemed a denial. Taxpayers can appeal within 30 days of denial notice. Judicial remedies typically require waiting 90 days post-claim filing. Consult a tax professional for guidance.Full Conversation
• Period to File Application: An application for refund or tax credit certificate (TCC) must be filed with the Commissioner of Internal Revenue (CIR) within two (*) years from the close of the taxable quarter when the sales were made. This is a strict jurisdictional period.
what do you mean by close of taxable year
The "close of the taxable year" refers to the end of the accounting period for which taxes are calculated. For most businesses, this is December 31st, but it can vary based on the fiscal year chosen by the business. It signifies when financial records are finalized for tax purposes. Do you have any other questions about filing for a tax refund or TCC?
What is the effect if filed beyond 2 year
Filing an application for a refund or tax credit certificate (TCC) beyond the two-year period is generally not allowed. It is a strict deadline, and missing it typically results in the loss of the right to claim the refund or tax credit. Would you like more information on this topic?
First, if a taxpayer has an unutilized and unclaimed input VAT related to zero rated sales or effectively zero rated sales, they may file a quarterly returns together with the supporting documents, such as receipts and other related evidence, with the BIR. The period of application for tax refund or tax credit certificate shall be within two (*) years from the close of the taxable year when the sales were made. This is a strict jurisdictional period, because If filed beyond the 2 year period, the taxpayer loses their right to claim tax refund or tax credit.
CHECK GRAMMAR
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Here's a corrected version of your text:
If a taxpayer has unutilized and unclaimed input VAT related to zero-rated or effectively zero-rated sales, they may file quarterly returns along with supporting documents, such as receipts and other related evidence, with the BIR. The period of application for a tax refund or tax credit certificate shall be within two (*) years from the close of the taxable year when the sales were made. This is a strict jurisdictional period because if filed beyond the *-year period, the taxpayer loses their right to claim a tax refund or tax credit.
Here's a corrected version of your text:
If a taxpayer has unutilized and unclaimed input VAT related to zero-rated or effectively zero-rated sales, they may file quarterly returns along with supporting documents, such as receipts and other related evidence, with the BIR. The period of application for a tax refund or tax credit certificate shall be within two (*) years from the close of the taxable year when the sales were made. This is a strict jurisdictional period because if filed beyond the *-year period, the taxpayer loses their right to claim a tax refund or tax credit.
may a taxpayer resort to judicial remedies without waiting the 90 day period to expire?
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In the Philippines, a taxpayer generally must wait for the *-day period to expire after filing a claim for a refund or tax credit with the Bureau of Internal Revenue (BIR) before resorting to judicial remedies. This period allows the BIR time to process the claim. However, exceptions may apply under certain circumstances. It's advisable to consult with a legal expert on specific cases to explore any possible exceptions.
Is there anything else you would like to know about this topic?
In the Philippines, a taxpayer generally must wait for the *-day period to expire after filing a claim for a refund or tax credit with the Bureau of Internal Revenue (BIR) before resorting to judicial remedies. This period allows the BIR time to process the claim. However, exceptions may apply under certain circumstances. It's advisable to consult with a legal expert on specific cases to explore any possible exceptions.
Is there anything else you would like to know about this topic?
The BIR, upon receipt of the application for tax refund or tax credit has 90 days period to conduct an investigation by reviewing the application. The BIR may either grant the application by issuing a tax credit certificate or cash refund, or deny the application, in which case, the BIR shall send a notice of denial to the taxpayer. In case, the application has not been acted upon by the BIR, the inaction is deemed a denial. The taxpayer has 30 days to appeal from receipt of the notice of denial. CHECK GRAMMAR
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Here's a corrected version of your text:
Upon receipt of an application for a tax refund or tax credit, the BIR has a *-day period to conduct an investigation by reviewing the application. The BIR may either grant the application by issuing a tax credit certificate or cash refund or deny it, in which case, they shall send a notice of denial to the taxpayer. If the application is not acted upon by the BIR, the inaction is deemed a denial. The taxpayer then has 30 days to appeal from the receipt of the notice of denial.
Is there anything else you would like to know?
Here's a corrected version of your text:
Upon receipt of an application for a tax refund or tax credit, the BIR has a *-day period to conduct an investigation by reviewing the application. The BIR may either grant the application by issuing a tax credit certificate or cash refund or deny it, in which case, they shall send a notice of denial to the taxpayer. If the application is not acted upon by the BIR, the inaction is deemed a denial. The taxpayer then has 30 days to appeal from the receipt of the notice of denial.
Is there anything else you would like to know?
The taxpayer must file a written claim for refund or tax credit with the CIR. This claim must state the grounds upon which the refund is being sought (e.g., erroneous assessment, double payment, overpayment, payment of a non-existent tax liability), within two (*) years from the date of payment of the tax, with the BIR. This two-year period is crucial and strictly construed by the courts.
The BIR will conduct an investigation and review the claim. Unlike VAT refunds under Section *, there is no specific *-day period for the CIR to act on a claim under Section *. The CIR is expected to act with reasonable dispatch.
SIMPLIFY
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Here's a simplified version of your text:
Taxpayers must file a claim for a refund or tax credit with the CIR within two years from the tax payment date. The BIR reviews the claim, conducting an investigation. For claims under Section *, there's no specific *-day period for the CIR to act. They must act reasonably.
Here's a simplified version of your text:
Taxpayers must file a claim for a refund or tax credit with the CIR within two years from the tax payment date. The BIR reviews the claim, conducting an investigation. For claims under Section *, there's no specific *-day period for the CIR to act. They must act reasonably.
The law, though financially impacting businesses, serves a valid public purpose and is a constitutional exercise of legislative power. SIMPLIFY
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Here's a simplified version of your statement:
The law may affect businesses financially, but it serves a public purpose and is a valid use of legislative power.
Here's a simplified version of your statement:
The law may affect businesses financially, but it serves a public purpose and is a valid use of legislative power.
Therefore, the assessment against Soaring Eagle is likely invalid because it undermines the principles of good faith, promissory estoppel, and due process, especially considering the role of the government's own Inter-Agency Tax Credit Center and the BIR's initial acceptance of the TCCs as payment.
SIMPLIFY
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The assessment against Soaring Eagle is likely invalid as it violates good faith, promissory estoppel, and due process, considering the government's Tax Credit Center and BIR initially accepted the TCCs as payment.
Here's a simplified version of your statement:
The assessment against Soaring Eagle is likely invalid as it violates good faith, promissory estoppel, and due process, considering the government's Tax Credit Center and BIR initially accepted the TCCs as payment.
o The Court has distinguished between properties used directly for revenue generation for purely commercial profit and properties used for a primary purpose that incidentally generates income to support that primary purpose.
o If the rentals collected from the doctors are used to maintain the hospital, improve its facilities, or otherwise support its charitable/medical objectives, then the income-generating activity does not defeat the "special" classification. The primary purpose remains healthcare, and the income is merely a means to sustain it.
SIMPLIFY
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Here's a simplified version of your statement:
The court differentiates between properties used solely for profit and those used primarily for a purpose that incidentally generates income. If rent from doctors supports hospital maintenance and medical objectives, it doesn't affect its "special" classification, as healthcare remains the primary purpose.
Here's a simplified version of your statement:
The court differentiates between properties used solely for profit and those used primarily for a purpose that incidentally generates income. If rent from doctors supports hospital maintenance and medical objectives, it doesn't affect its "special" classification, as healthcare remains the primary purpose.
VAT as an Indirect Tax:
The Court unequivocally clarified that Value Added Tax (VAT) is an indirect tax. It is a tax on consumption, imposed on the value added at each stage of the production and distribution chain.
While the statutory liability to pay the VAT rests upon the seller/contractor (PCC in this case), the economic burden of the tax is ultimately passed on to the buyer/consumer (WHO). This pass-on mechanism is what makes it an indirect tax. SIMPLIFY
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Here's a simplified version of your statement:
VAT is an indirect tax on consumption, charged at each stage of production and distribution. The seller is legally responsible for the VAT, but the buyer ultimately bears the economic burden.
Here's a simplified version of your statement:
VAT is an indirect tax on consumption, charged at each stage of production and distribution. The seller is legally responsible for the VAT, but the buyer ultimately bears the economic burden.
Broad Interpretation of Tax Exemption for International Organizations:
The Host Agreement between the United Nations (which includes WHO) and the Philippine government explicitly states that WHO's "assets, income and other properties shall be... exempt from all direct and indirect taxes."
The Court held that this provision should be interpreted broadly to give effect to the intent of the international agreement, which is to ensure the smooth and unhindered operations of international organizations in the host country.
To interpret the exemption narrowly, excluding indirect taxes that are effectively borne by the WHO, would defeat the purpose of the agreement. SIMPLIFY
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Here's a simplified version of your statement:
The Host Agreement between the UN and the Philippines exempts WHO's assets, income, and properties from all taxes. The Court says this exemption should be broad to ensure WHO operates smoothly, and excluding indirect taxes would contradict the agreement's intent.
Here's a simplified version of your statement:
The Host Agreement between the UN and the Philippines exempts WHO's assets, income, and properties from all taxes. The Court says this exemption should be broad to ensure WHO operates smoothly, and excluding indirect taxes would contradict the agreement's intent.
The BIR is incorrect. The *% VAT is an indirect tax where PCC can shift its burden to WHO which is supposedly the latter’s assets and properties are exempted from taxation under the Host Agreement.
Supreme Court's ruling in CIR v. Precision Construction Corporation, the BIR was NOT correct in assessing the *% VAT on PCC's gross receipts from the construction of the WHO building. The VAT, being an indirect tax, falls within the ambit of the WHO's comprehensive tax exemption under the Host Agreement, as the economic burden of this tax is ultimately borne by the WHO.
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Here's a corrected version of your text:
The BIR is incorrect. The *% VAT is an indirect tax, allowing PCC to shift its burden to WHO, whose assets and properties are exempt from taxation under the Host Agreement. In CIR v. Precision Construction Corporation, the Supreme Court ruled that the BIR was incorrect in assessing the *% VAT on PCC's gross receipts from constructing the WHO building. Being an indirect tax, VAT is covered by WHO's comprehensive tax exemption under the Host Agreement since WHO ultimately bears the economic burden.
Here's a corrected version of your text:
The BIR is incorrect. The *% VAT is an indirect tax, allowing PCC to shift its burden to WHO, whose assets and properties are exempt from taxation under the Host Agreement. In CIR v. Precision Construction Corporation, the Supreme Court ruled that the BIR was incorrect in assessing the *% VAT on PCC's gross receipts from constructing the WHO building. Being an indirect tax, VAT is covered by WHO's comprehensive tax exemption under the Host Agreement since WHO ultimately bears the economic burden.
Patrick is a successful businessman in the United States and he is a sole proprietor of a supermarket which has a gross sales of $* million and an annual income of $* million. He went to the Philippines on a visit and, in a party, he saw Atty. Agaton who boasts of being a tax expert. Patrick asks Atty. Agaton: if he (Patrick) decides to reacquire his Philippine citizenship under RA *, establish residence in this country, and open a supermarket in Makati City, will the BIR tax him on the income he earns from his U.S. business? If you were Atty. Agaton, what advice will you give Patrick? (*%)
SIMPLIFY QUESTION
If Patrick becomes a dual citizen under RA *, lives in the Philippines, and opens a business there, will the BIR tax his U.S. business income?
While the income will be taxable, the Philippine tax law or existing tax treaties might provide mechanisms to mitigate strict double taxation, such as:
Tax Credit for Foreign Taxes Paid (Section *, NIRC): Patrick might be able to claim a tax credit for income taxes he pays to the U.S. government on his U.S. business income, up to certain limits, against his Philippine income tax liability on the same income.
Tax Treaties: If a tax treaty exists between the Philippines and the U.S. (which it does), it might contain provisions for the avoidance of double taxation, such as tax sparing credits, reduced withholding rates, or specific rules on taxing business profits. SIMPLIFY
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If Patrick becomes a dual citizen and resides in the Philippines, he'll be taxed on his U.S. business income. However, he might reduce double taxation through:
- Tax Credit: Claim credits for U.S. taxes paid.
- Tax Treaty: The Philippines-U.S. treaty may offer double taxation relief.
Would you like to know more about these options?
If Patrick becomes a dual citizen and resides in the Philippines, he'll be taxed on his U.S. business income. However, he might reduce double taxation through:
- Tax Credit: Claim credits for U.S. taxes paid.
- Tax Treaty: The Philippines-U.S. treaty may offer double taxation relief.
Would you like to know more about these options?
Construction and Interpretation of Tax Laws, Rules, and
Regulations
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In general, the construction and interpretation of tax laws, rules, and regulations involve understanding the legislative intent, considering the literal text, and seeking clarity from higher authorities or courts when ambiguities arise.
Is there a specific aspect of tax law interpretation you'd like to explore further?
In general, the construction and interpretation of tax laws, rules, and regulations involve understanding the legislative intent, considering the literal text, and seeking clarity from higher authorities or courts when ambiguities arise.
Is there a specific aspect of tax law interpretation you'd like to explore further?
Mitigants
This term refers to strategies or provisions in tax law that reduce or eliminate a tax liability. They are often employed to avoid the negative economic effects of excessive taxation, especially double taxation, and to promote fairness or specific economic activities. SIMPLIFY
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Mitigants are tax strategies that lower or remove tax liabilities to prevent excessive taxation, including double taxation. They aim to promote fairness and encourage specific economic activities.
Mitigants are tax strategies that lower or remove tax liabilities to prevent excessive taxation, including double taxation. They aim to promote fairness and encourage specific economic activities.
Tax Exemption
Interpretation: A tax exemption is a privilege or immunity from a tax obligation. It means that certain persons, properties, transactions, or incomes are excluded from the imposition of a tax that would otherwise apply to them.
Example: Educational institutions, non-profit organizations, or specific types of income (like certain benefits or minimum wage earners) might be exempt from income tax. In the problem about WHO, the organization itself was tax-exempt from direct and indirect taxes.
Purpose: To encourage specific activities, support charitable/educational institutions, or provide relief to certain sectors deemed deserving by the government.
Nature: It totally frees the subject from the tax. SIMPLIFY
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A tax exemption is a privilege that excludes certain persons, properties, or incomes from taxes that would otherwise apply. Examples include educational institutions and non-profits. The purpose is to support specific activities or provide relief to deserving sectors, completely freeing them from tax obligations.
A tax exemption is a privilege that excludes certain persons, properties, or incomes from taxes that would otherwise apply. Examples include educational institutions and non-profits. The purpose is to support specific activities or provide relief to deserving sectors, completely freeing them from tax obligations.
ii. Tax Credit
Interpretation: A tax credit is a direct reduction from the calculated tax liability. It's an amount that can be subtracted directly from the tax due, dollar for dollar (or peso for peso).
Example: The foreign tax credit (as discussed for Patrick's case) allows a taxpayer to reduce their Philippine income tax by the amount of income tax paid to a foreign country on the same income, up to certain limits. Other examples include input VAT credit, or certain credits for specific investments.
Purpose: To avoid double taxation (e.g., international tax credits), to incentivize certain behaviors (e.g., green energy credits), or to provide relief (e.g., credits for low-income earners).
Nature: Reduces the tax itself, not the taxable base. SIMPLIFY
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A tax credit is a direct reduction of the tax owed, subtracted from the total tax liability, peso for peso. It helps avoid double taxation, encourages certain behaviors, or provides relief. Examples include foreign tax credits and input VAT credits.
A tax credit is a direct reduction of the tax owed, subtracted from the total tax liability, peso for peso. It helps avoid double taxation, encourages certain behaviors, or provides relief. Examples include foreign tax credits and input VAT credits.
ii. Tax Deduction
Interpretation: A tax deduction is an amount that is subtracted from gross income or gross sales/receipts to arrive at the taxable income (or net sales/receipts). It reduces the base upon which the tax is computed, rather than directly reducing the tax itself.
Example: Ordinary and necessary business expenses (like rent, salaries, utilities, marketing, etc.), interest expense (subject to limits), and certain itemized deductions are subtracted from gross income.
Purpose: To allow taxpayers to recover the costs of earning income, ensure taxation on net profit, and encourage certain expenses (e.g., donations to qualified donees).
Nature: Reduces the tax base.
SIMPLIFY
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A tax deduction reduces the taxable income by subtracting specific expenses from gross income. Examples include business expenses like rent and salaries. The purpose is to recover income-earning costs and encourage certain expenses. It decreases the tax base, not the tax itself.
A tax deduction reduces the taxable income by subtracting specific expenses from gross income. Examples include business expenses like rent and salaries. The purpose is to recover income-earning costs and encourage certain expenses. It decreases the tax base, not the tax itself.
iv. Tax Discount
Interpretation: A tax discount is a reduction in the amount of tax due, usually offered for timely or early payment. It's an incentive to encourage prompt compliance.
Example: Local government units (LGUs) often offer discounts on real property taxes if paid in advance or within a specific period. Some national taxes might also have similar incentives.
Purpose: To encourage prompt payment of taxes and improve cash flow for the taxing authority.
Nature: A percentage or fixed amount off the final tax due, usually for specific compliance behaviors.
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It seems like you're seeking clarification on tax concepts like discounts, credits, exemptions, and deductions. In Western Visayas, like elsewhere in the Philippines, local government units may offer discounts on real property taxes for early payment. If you have more specific questions or need further clarification, feel free to ask!
It seems like you're seeking clarification on tax concepts like discounts, credits, exemptions, and deductions. In Western Visayas, like elsewhere in the Philippines, local government units may offer discounts on real property taxes for early payment. If you have more specific questions or need further clarification, feel free to ask!
iv. Tax Discount
Interpretation: A tax discount is a reduction in the amount of tax due, usually offered for timely or early payment. It's an incentive to encourage prompt compliance.
Example: Local government units (LGUs) often offer discounts on real property taxes if paid in advance or within a specific period. Some national taxes might also have similar incentives.
Purpose: To encourage prompt payment of taxes and improve cash flow for the taxing authority.
Nature: A percentage or fixed amount off the final tax due, usually for specific compliance behaviors. simplify
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A tax discount is a reduction in tax due for early or timely payment, often offered by LGUs for real property taxes. It encourages prompt payment and aids cash flow, usually as a percentage or fixed amount off the final tax.
A tax discount is a reduction in tax due for early or timely payment, often offered by LGUs for real property taxes. It encourages prompt payment and aids cash flow, usually as a percentage or fixed amount off the final tax.
Shifting of tax burden means the person or company legally responsible for paying a tax (like a business) makes someone else (like a customer) actually pay for it through higher prices.
How it works:
It usually happens with indirect taxes (taxes not directly on income or property). For example, a factory pays a tax on the goods they make. But instead of absorbing that cost, they add the tax amount to the price they charge. Each step of the way, from wholesaler to retailer, they add the tax to the price until it reaches the final customer. So, the customer ends up paying for the tax in the price of the product. VAT (Value-Added Tax) is a perfect example of this.
Is it legal?
Yes, it's generally legal. It's just how many types of taxes are designed to work, and it's a normal part of how prices are set in the market. It's not an attempt to break tax laws. SIMPLIFY
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Shifting the tax burden means the company responsible for paying a tax transfers the cost to customers through higher prices. This is common with indirect taxes like VAT. It's legal, as such taxes are designed to be passed on to the consumer.
Shifting the tax burden means the company responsible for paying a tax transfers the cost to customers through higher prices. This is common with indirect taxes like VAT. It's legal, as such taxes are designed to be passed on to the consumer.
This is common with indirect taxes. For example, a manufacturer pays excise tax on goods, but they then include that tax in the selling price to the distributor. The distributor adds it to their price for the retailer, and the retailer adds it to their price for the consumer. Ultimately, the consumer bears the economic burden of the excise tax, even though the manufacturer was the one legally obligated to pay it to the government. Value-Added Tax (VAT) is another prime example; while businesses are the statutory taxpayers, the burden is effectively passed on to the final consumer.
Generally LEGAL. Shifting of tax burden is an inherent characteristic of indirect taxes and is a recognized part of tax economics. It is not an attempt to violate tax laws but rather a consequence of market dynamics and tax design.
SIMPLIFY
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Shifting the tax burden means businesses legally responsible for a tax pass the cost to consumers via higher prices. Common with indirect taxes like VAT, this practice is legal and part of tax economics. It reflects market dynamics, not a violation of tax laws.
Shifting the tax burden means businesses legally responsible for a tax pass the cost to consumers via higher prices. Common with indirect taxes like VAT, this practice is legal and part of tax economics. It reflects market dynamics, not a violation of tax laws.
MARKET DYNAMICS simple term
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Market dynamics refer to the forces that influence the supply and demand of goods and services in a market. These include factors like consumer preferences, competition, technological changes, and economic conditions, which collectively determine pricing, availability, and market behavior.
Market dynamics refer to the forces that influence the supply and demand of goods and services in a market. These include factors like consumer preferences, competition, technological changes, and economic conditions, which collectively determine pricing, availability, and market behavior.
Exempt Person (or Entity): The exemption applies to the entity itself, meaning that all or certain types of its income, properties, or transactions are exempt from tax by virtue of its nature, purpose, or legal classification. Example: Non-stock, non-profit educational institutions (under specific conditions), charitable institutions, government-owned and controlled corporations (GOCCs) under their charters, or certain international organizations (like the World Health Organization in a previous problem). simplify
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An exempt person or entity is one whose income, properties, or transactions are not subject to tax due to their nature, purpose, or legal classification. Examples include non-profit educational institutions, charitable organizations, government-owned corporations, and certain international organizations.
An exempt person or entity is one whose income, properties, or transactions are not subject to tax due to their nature, purpose, or legal classification. Examples include non-profit educational institutions, charitable organizations, government-owned corporations, and certain international organizations.
GOCC? it has been held by new tax that GOCC is taxable
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In the Philippines, Government-Owned and Controlled Corporations (GOCCs) have specific tax exemptions under their charters. However, recent changes in tax laws may affect their taxable status. It's essential to understand these changes and the specific provisions of their charters to determine tax liabilities. Would you like more information on how these changes impact GOCCs specifically?
In the Philippines, Government-Owned and Controlled Corporations (GOCCs) have specific tax exemptions under their charters. However, recent changes in tax laws may affect their taxable status. It's essential to understand these changes and the specific provisions of their charters to determine tax liabilities. Would you like more information on how these changes impact GOCCs specifically?
[*]. Request of reinvestigation – taxpayer is require to submit new evidence, and they have 60 days to submit additional evidence, the 60 days period is counted from the date of the filing of the protest. Unlike, request for reconsideration – no need to submit additional evidence, as the BIR shall act on the protest within 180 days, on the basis of the existing records.
[*]. If initial the protest is for reconsideration, but later within 180 days, it was discovered by the taxpayer that there is a new evidence. The BIR may allow the submission of that new evidence. The start of 180 days in this case, shall be from the submission of the new evidence.
check grammar
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Here's a corrected version of your text:
*. Request for reinvestigation requires the taxpayer to submit new evidence within 60 days from the date of the protest filing. Unlike a request for reconsideration, additional evidence is not required, and the BIR will act within 180 days based on existing records.
*. If a protest initially requests reconsideration but new evidence is discovered within 180 days, the BIR may allow its submission. In this case, the *-day period starts from the submission date of the new evidence.
Here's a corrected version of your text:
*. Request for reinvestigation requires the taxpayer to submit new evidence within 60 days from the date of the protest filing. Unlike a request for reconsideration, additional evidence is not required, and the BIR will act within 180 days based on existing records.
*. If a protest initially requests reconsideration but new evidence is discovered within 180 days, the BIR may allow its submission. In this case, the *-day period starts from the submission date of the new evidence.
Common Carrier Status: Determination Based on 'Holding Out' to the Public and Incidental Inclusion of Transportation in Package Deals." SIMPLIFY
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Common Carrier Status Simplified: Determining if a business is a common carrier depends on whether it publicly offers transportation services and if transportation is a minor part of another service or package deal.
Common Carrier Status Simplified: Determining if a business is a common carrier depends on whether it publicly offers transportation services and if transportation is a minor part of another service or package deal.
Determining if a business is a common carrier depends on whether it publicly offers transportation services and if transportation is a minor part of another service or package deal. is this an ancillary
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In the context of determining if a business is a common carrier, "ancillary" refers to transportation being a secondary or minor part of a broader service or package. If transportation is just a supportive service and not the primary offering, it can be considered ancillary. Do you have any further questions on this topic?
In the context of determining if a business is a common carrier, "ancillary" refers to transportation being a secondary or minor part of a broader service or package. If transportation is just a supportive service and not the primary offering, it can be considered ancillary. Do you have any further questions on this topic?
The power to tax is primarily with the Congress of the Philippines. The Constitution says that all laws about taxes should start in the House of Representatives. This means Congress is the main body that decides who gets taxed, how much, and who might be exempted.
While the President has powers to implement laws, they generally cannot create tax exemptions or incentives on their own without a law passed by Congress allowing them to do so.
There are some limited exceptions where the President might have some authority related to taxes, but these are usually based on specific laws passed by Congress.
SIMPLIFY
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Here's a simplified version:
The Philippine Congress holds the primary power to tax, with tax laws starting in the House of Representatives. The President can implement laws but can't create tax exemptions without Congress's approval, except in rare cases based on specific laws.
Here's a simplified version:
The Philippine Congress holds the primary power to tax, with tax laws starting in the House of Representatives. The President can implement laws but can't create tax exemptions without Congress's approval, except in rare cases based on specific laws.
The Philippine Congress holds the primary power to tax, with tax laws starting in the House of Representatives. The President can implement laws but can't create tax exemptions without Congress's approval, except in rare cases based on specific laws. USE LEGAL ENGLISH
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The Philippine Congress has the primary authority to impose taxes, as stipulated by the Constitution, requiring all tax legislation to originate in the House of Representatives. While the President is empowered to enforce these laws, they cannot independently establish tax exemptions or incentives without legislative endorsement, except where explicitly permitted by specific statutory provisions.
The Philippine Congress has the primary authority to impose taxes, as stipulated by the Constitution, requiring all tax legislation to originate in the House of Representatives. While the President is empowered to enforce these laws, they cannot independently establish tax exemptions or incentives without legislative endorsement, except where explicitly permitted by specific statutory provisions.
Except where explicitly permitted by specific statutory provisions. an example of this
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An example of the President having authority related to taxes, as explicitly permitted by statutory provisions, is the power to grant tax amnesty. This can occur when a law enacted by Congress specifically allows the President to offer relief to taxpayers under certain conditions, providing a fresh start and encouraging voluntary compliance.
An example of the President having authority related to taxes, as explicitly permitted by statutory provisions, is the power to grant tax amnesty. This can occur when a law enacted by Congress specifically allows the President to offer relief to taxpayers under certain conditions, providing a fresh start and encouraging voluntary compliance.
President of the Philippines can independently establish tax exemptions or incentives without direct legislative endorsement, based on explicit statutory provisions.
The most prominent and often cited example of this exception involves the President's power to adjust tariff rates, which includes the power to grant tariff exemptions or modify duties.
This power is typically delegated by Congress to the President through specific legislation, such as the Tariff and Customs Code of the Philippines (now consolidated under the Customs Modernization and Tariff Act or CMTA, Republic Act No. *).
SUMMARIZE
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The President of the Philippines can independently establish tax exemptions or incentives under specific statutory provisions. A key example is the President's authority to adjust tariff rates and grant exemptions, as delegated by Congress through legislation like the Customs Modernization and Tariff Act (Republic Act No. *).
The President of the Philippines can independently establish tax exemptions or incentives under specific statutory provisions. A key example is the President's authority to adjust tariff rates and grant exemptions, as delegated by Congress through legislation like the Customs Modernization and Tariff Act (Republic Act No. *).
onflict between the *-year prescriptive period for tax refund claims under the National Internal Revenue Code (NIRC) and the *-year prescriptive period for solutio indebiti (payment by mistake) under the Civil Code in tax cases is a classic issue in Philippine tax law. summarize
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Summary: In Philippine tax law, there's a conflict between the *-year prescriptive period for tax refund claims under the National Internal Revenue Code (NIRC) and the *-year prescriptive period for solutio indebiti under the Civil Code. This issue arises when taxpayers seek refunds for taxes paid by mistake, highlighting different legal interpretations and potential legal challenges.
Summary: In Philippine tax law, there's a conflict between the *-year prescriptive period for tax refund claims under the National Internal Revenue Code (NIRC) and the *-year prescriptive period for solutio indebiti under the Civil Code. This issue arises when taxpayers seek refunds for taxes paid by mistake, highlighting different legal interpretations and potential legal challenges.
The sales or services by a registered business enterprise to PEZA entities are treated as zero-rated VAT sales, meaning no VAT is collected from the PEZA.
PEZA entities are also entitled to income tax holiday (ITH), meaning they are exempted from paying corporate income tax during specific period. Under the law, less developed economic zone areas (LDA) is granted ITH for seven (*) years, while highly developed areas is granted ITH for a period of four (*) years. The aim of this ITH is to encourage development of the economic zone areas.
CHECK GRAMMAR
Here's a corrected version of your text:
Sales or services by a registered business enterprise to PEZA entities are treated as zero-rated VAT sales, meaning no VAT is collected from PEZA. PEZA entities are also entitled to an income tax holiday (ITH), exempting them from paying corporate income tax for a specific period. Under the law, less developed economic zone areas (LDA) are granted an ITH for seven years, while highly developed areas are granted an ITH for four years. The aim of this ITH is to encourage the development of economic zone areas.
Sales or services by a registered business enterprise to PEZA entities are treated as zero-rated VAT sales, meaning no VAT is collected from PEZA. PEZA entities are also entitled to an income tax holiday (ITH), exempting them from paying corporate income tax for a specific period. Under the law, less developed economic zone areas (LDA) are granted an ITH for seven years, while highly developed areas are granted an ITH for four years. The aim of this ITH is to encourage the development of economic zone areas.
The purpose of applying for claim related to zero-rated sales transaction, is to recover input vat on purchases of supplies from the suppliers by the seller to the PEZA entities. Because the seller in purchasing supplies and goods, he is paying an input VAT. So, the excess of zero rated sales is to be refunded by the BIR. check grammar
Case Rating: *
Here's a corrected version of your text:
The purpose of applying for a claim related to zero-rated sales transactions is to recover input VAT on purchases from suppliers by the seller to PEZA entities. Since the seller pays input VAT on supplies and goods, the excess from zero-rated sales should be refunded by the BIR.
Here's a corrected version of your text:
The purpose of applying for a claim related to zero-rated sales transactions is to recover input VAT on purchases from suppliers by the seller to PEZA entities. Since the seller pays input VAT on supplies and goods, the excess from zero-rated sales should be refunded by the BIR.
Wreck Corporation imported * million liters of Jet A-* aviation fuel and paid excise taxes on it. *% of this fuel was subsequently sold to international carriers (both Philippine and foreign registries) for use outside the Philippines. Wreck Corporation did not pass on these excise taxes to the carriers. Wreck Corporation is now claiming a refund or tax credit for the excise taxes paid on the entire * million liters. The core issue is whether the BIR should grant this refund. SIMPLIFY
Case Rating: *
Wreck Corporation imported Jet A-* fuel, paid excise taxes, and sold *% to international carriers for use outside the Philippines without passing on the taxes. They now seek a refund or tax credit for all taxes paid. The key issue is if BIR should grant this refund.
Wreck Corporation imported Jet A-* fuel, paid excise taxes, and sold *% to international carriers for use outside the Philippines without passing on the taxes. They now seek a refund or tax credit for all taxes paid. The key issue is if BIR should grant this refund.
Calvin Dela Pisa, a Permits and Licensing Officer for Sta. Portia Realty Corporation (SPRC), incurred expenses for lunch with an HLURB Regional Director (to discuss a development permit) and for breakfast with a prospective client (to discuss a joint venture). The expenses were supported by receipts in his name and were subsequently reimbursed by SPRC. The questions are: (a) Can SPRC deduct these expenses? and (b) Is Calvin's reimbursement taxable? SHORTEN GETS ONLY THE SUBSTANCE
Case Rating: *
- SPRC can deduct Calvin's business-related expenses from taxable income if they are ordinary, necessary, and directly related to business operations.
- Calvin's reimbursement is not taxable as it compensates him for business expenses incurred on behalf of SPRC.
- SPRC can deduct Calvin's business-related expenses from taxable income if they are ordinary, necessary, and directly related to business operations.
- Calvin's reimbursement is not taxable as it compensates him for business expenses incurred on behalf of SPRC.
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