RR 15 of 2010

Last January 21st, I posted a topic about Revenue Regualtions number 15 of 2010 (BIR RR 15-2010). Now, I would like to share a copy of the regulation for your reference.

RR-15 of 2010 is all about an additional procedure and/or documentary requirements in submitting financial statements to the BIR.  For example, in addition to disclosure mandated by the PFRS, the notes to financial statements shall now include information on taxes, duties and license fees paid or accrued during the taxable year.

So, therefore, aside from the tax returns that we are normally doing, per this regulation, the notes to FS should include the amount of VAT output tax declared and input tax claimed during the year.  The landed cost of imports and the amount of custom duties, including tariff fees paid or accrued. The amount of excise taxes paid locally or otherwise if its applicable to your organization. Documentary Stamp Tax (DST) on loan instruments and/or other transactions subject to DST.  And all other taxes, including real estate tax, withholding tax, final withholding tax, deficiency tax assessments, protested or not and tax cases plus the amount involved under preliminary investigation, litigation and all those in courts already.

Wow!  If you analyze it, this is really a good move for the BIR.  Why, because it’s all in there already, a food on the table, no more worries. If you are an examiner all have to do is eat, este, I mean read and analyse the financial statements’.  Well, perhaps this move is also a patch for the minimal number of examiners.  Truly, the ratio of BIR manpower to the number of companies be it corporation or otherwise is quite a stretch.  I hope the SEC will come up with a regulation too?  Anyhow, this is an additional work for all practicing CPAs but think of it as an assistance na lang to the BIR.  Okay?

You can read the regulations here (RR 15-2010). Save it!