CPA-Tax Lawyer in the Philippines

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

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