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Train Law Lays to Rest Questions on the Proper Application of Deficiency and Delinquency Interest on Tax Liabilities

Train Law Lays to Rest Questions on the Proper Application of Deficiency and Delinquency Interest on Tax Liabilities Varying positions, at times, have been taken by the Justices of the Court of Tax Appeals (“CTA”) with respect to the issue of whether or not deficiency and delinquency interests may be simultaneously imposed on a taxpayer’s tax liability. Prior to the enhancements brought about by the enactment of Tax Reform for Acceleration and Inclusion Law (TRAIN), [1] the Tax Code stated: “SEC. 249. Interest.  - (A) In General.  - There shall be assessed and collected on any unpaid amount of tax, interest at the rate of twenty percent (20%) per annum , or such higher rate as may be prescribed by rules and regulations, from the date prescribed for payment until the amount is fully paid. (B) Deficiency Interest.  - Any deficiency in the tax due, as the term is defined in this Code, shall be subject to the interest prescribed in Subsection (A) hereof, which interest sh
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Better Late Than Never: Even With a Pending BIR Investigation, Taxpayers May Still Remit Withholding Taxes

Better Late Than Never: Even With a Pending BIR Investigation, Taxpayers May Still Remit Withholding Taxes Early this year, the BIR, thru Revenue Regulations No. (“RR”) 6-2018, reinstated the possibility for taxpayers to belatedly remit the expanded withholding tax (“EWT”) withheld during the period being investigated from income payments made to professionals, contractors, and other recipients whose income is subject to withholding, even when there is already a Letter of Authority or even during reinvestigation. Under the Tax Code, an income payment, which is otherwise deductible, shall be allowed as a deduction from the payor's gross income only if it is shown that the income tax required to be withheld has been paid. Thus, it has always been the practice during audit investigations by the BIR, where there are expenses found not to have bee subjected to withholding taxes, that the taxpayer is allowed to belatedly remit to the BIR the taxes withheld from the said income
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Outline: A Comprehensive Lecture on Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law and Latest Updates on the Tax Amnesty Bill

I have been getting a number of queries from clients & friends on the new TRAIN Law. As such, in my upcoming series of trainings on the TRAIN Law, I will be discussing the following: Background on the TRAIN Law Amendments to the NIRC Provisions on Income Tax New Income Tax Rates for Individuals Self-employed Individuals/ Professionals Mixed Income Earners Removal of Personal Exemptions Fringe Benefit Taxes Filing and Payment of Taxes Individuals Corporations Optional Standard Deduction Installment Payment Amendments to Tax Rates of Passive Income Amendments to the NIRC Provisions on Withholding Taxes Expanded Withholding Taxes Final Withholding Taxes   Amendments to the NIRC affecting Estate Tax  New Estate Tax Rate Filing and Payment of Estate Tax Returns Amendments to the NIRC affecting Donor’s Tax
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Staying on Track: A Comprehensive Lecture on Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law

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