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QUALITY ASSURANCE BULLETIN I February 2019 Edition 1
QUALITY ASSURANCE BULLETIN I February 2019 Edition 2
RECENT BUREAU OF INTERNAL REVENUE ISSUANCES
RECENT COURT OF TAX APPEALS CASES
RECENT SECURITIES AND EXCHANGE COMMISSION ISSUANCES
Revenue Regulations No. 1-2019: Further Amending Certain Provisions of Revenue Regulations (RR) No. 2-98 as Amended by RR No. 11-2018, Which Implemented the Provisions of Republic Act 10963, Otherwise Known as Tax Reform for Acceleration and Inclusion (TRAIN) Law, Relative to Some Changes in the Rate of Creditable Withholding Tax on Certain Income Payments.
Revenue Memorandum Order No. 8-2019: Prescribes the policies, guidelines and procedures in the Certification of Electronic Tax Return Filing and/or Payment Solutions.
Revenue Memorandum Order No. 10-2019: Grants Value-Added Tax (VAT) privileges to resident foreign missions, their qualified personnel and the dependents of the latter.
Revenue Memorandum Circular No. 24-2019: Clarifications to the Amending Provisions of RR No. 11-2018 Prescribing the Submission of BIR Form No. 2316 and Certified List of Employees Qualified for Substituted Filing of Income Tax Return (ITR).
Revenue Memorandum Circular No. 27-2019: Circularizing Enhanced BIR Registration Forms Due to the Implementation of Tax Reform for Acceleration and Inclusion (TRAIN) Law.
Revenue Memorandum Circular No. 28-2019: Prescribes the use of BIR Printed Receipt/Invoice.
Revenue Memorandum Circular No. 29-2019: Keeping, Maintaining and Registration of Books of Accounts.
Revenue Memorandum Circular No. 30-2019: Clarifying Section 100 of National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN Law) in Relation to Sale of Shares of Stock Not Traded or Listed.
Petitioner failed to submit a clear proof to substantiate its argument such as a copy of minutes of the meeting of its Boards, the Board Resolution, or a memorandum recommending the appropriation
of such retained earnings for its definite planned expansion.—CTA EB No.1662
Failure to declare his income and to pay the corresponding taxes thereon is a violation of Section 255 and the accused may be prosecuted even without an assessment pursuant to Section 222 of the NIRC. Hence,
the prosecution of criminal cases against accused may proceed even without an assessment.—CTA
SEC Memorandum Circular No. 2-Series of 2019: Amendments to Rule 5.8.2 of the Investment Company Act Implementing Rules and Regulations.
SEC Memorandum Circular No. 4-Series of 2019: Sustainability Reporting Guidelines For Publicly-Listed Companies.
SEC Notice to the Public: Implementation of the Requirements of the New General Information Sheet (GIS), SEC Memorandum Circular No. 17 (2018).
SEC Notice to the Public: New Company Registration System (CRS) Users (LEAP) Lane for Express Application Processing.
RECENT PROFESSIONAL REGULATION COMMISSION PROVISIONS
PRC Resolution No. 2019-1146 Series of 2019: Amending Relevant Provision of Resolution No. 1032 (s.2017) Otherwise Known as the “ Implementing Rules and Regulations (IRR) of Republic Act No. 10912,
Also Known as the Continuing Professional Development (CPD) Act of 2016.
QUALITY ASSURANCE BULLETIN I February 2019 Edition 3
REVENUE REGULATIONS
NO. 1-2019
Further Amending Certain Provisions of Revenue
Regulations (RR) No. 2-98 as Amended by RR No.
11-2018, Which Implemented the Provisions of
Republic Act 10963, Otherwise Known as Tax Reform
for Acceleration and Inclusion (TRAIN) Law, Relative
to Some Changes in the Rate of Creditable
Withholding Tax on Certain Income Payments.
Section 57(B) of the National Internal
Revenue Code (NIRC) of 1997, as amended by
Section 17 of the TRAIN Law, provides that CWT
rate shall not be less than 1% but not more than
15% [previously 32%] of the income payment.
However, there are certain CWT rates
remained to be more than 15% notwithstanding
the issuance of RR 11-2018.
Thus, RR No. 1-2019 hereby reduces the
CWT rates for the following income payments:
REVENUE MEMORANDUM ORDER
NO. 8-2019
Prescribes the policies, guidelines and procedures in
the Certification of Electronic Tax Return Filing and/
or Payment Solutions.
The Order shall be applicable to Tax
Software Providers (TSPs) who develop
electronic tax return filing, and/or payment
solution for their own clients, for sale as an
off- the-shelf solution, or for subscription. An
individual or non-individual TSP is eligible to
apply for testing and certification of their Tax
Return Filing/Payment Solution (TFPS)
provided said TSP is registered with the BIR.
The TSPs may submit their solutions for
testing and certification as an: (1) e-filing; (2)
e-payment; and (3) combination of e-filing and
e-payment solution. The TSP who applies for
certification of the TFPS shall enroll in the
eTSPCert System accessible at the BIR website
(www.bir.gov.ph). The applied TFPS shall
undergo evaluation, testing and certification.
Income payments subject to CWT under RR No. 20-98, amended by RR No. 1-2019
Old rates
New rates
Section 2.57.2. (P)(1). Manila Electric Company (MERALCO) refund arising from Supreme Court Case G.R. No. 141314 dated 9 April 2003 payments to customers under Phase IV as approved by the Energy Regulatory Commission (ERC). On gross amount of refund given by MERALCO customers.
25% or
32%
15%
Section 2.57.2. (P)(2)(ii). MERALCO payments to non-residential customers for the interest income on the refund of meter deposits determined, computed, and paid in accordance with the "Rules to Govern Refund of Meter Deposits to Residential and Non-Residential Customers", as approved by the ERC under Resolution No. 8, Series of 2008, exempting all electricity consumers from the payment of meter deposit. On gross amount of interest paid directly to the non-residential customers or applied against said customers’ billings.
20% 15%
Section 2.57.2. (Q)(ii). Interest income on the refund paid to non-residential customers either through direct payment or application against customers' billings by other electric Dis-tribution Utilities in accordance with the rules embodied in ERC Resolution No. 8, Series of 2008, dated 4 June 2008, governing the refund of meter deposits which was approved and adopted by ERC in compliance with the mandate of Article 8 of the Magna Carta for Resi-dential Electricity Consum-ers and Article 3.4.2 of DSOAR, ex-empting all electricity consum-ers from the payment of meter deposit.
20% 15%
Section 2.57.2. (S). On interest income derived from any other debt instruments not within the coverage of ‘deposit substitutes’ and RR No. 14-2012, unless otherwise provided by law or regulations.
20% 15%
QUALITY ASSURANCE BULLETIN I February 2019 Edition 4
REVENUE MEMORANDUM ORDER
NO. 10-2019
Grants Value-Added Tax (VAT) privileges to resident
foreign missions, their qualified personnel and the
dependents of the latter.
Under the principle of reciprocity, the BIR
may grant VAT privileges to a resident foreign
mission, its qualified personnel and
dependents of the latter on their local
purchase of goods and/or services, subject to a
categorical confirmation from the Office of
Protocol of the Department of Foreign Affairs
(DFA-OP) that the foreign government accords
the same VAT privileges to the Philippine
Foreign Service Posts (PFSPs) and its personnel
on their purchase of goods and services in the
concerned foreign country.
Based on the principle of reciprocity, a
resident foreign mission, its qualified personnel
and the latter’s dependent/s may be
accorded VAT exemption on their purchase
of goods and/or services either at POINT-OF-
SALE or on REFUND/REIMBURSEMENT
BASIS. The method of granting VAT
exemption highly depends on the VAT privilege
being accorded to our PFSPs by the different
tax jurisdictions abroad, which is regularly
monitored by the DFA-OP.
The updated list of countries/jurisdictions
that grant PFSPs and their members VAT
privileges on their purchase of goods and
services is provided by the DFA-OP. The list
and DFA-OP’s endorsement on the tax privileges
being enjoyed by all the country; PFSPs abroad
shall serve as a guide for the International Tax
Affairs Division (ITAD) of the BIR in determining
whether or not the applicant is entitled to VAT
privileges and therefore, should be issued a
ruling, certificate, and/or card, as the case
may be.
REVENUE MEMORANDUM CIRCULAR
NO. 24-2019
Clarifications to the Amending Provisions of RR
No. 11-2018 Prescribing the Submission of BIR Form
No. 2316 and Certified List of Employees Qualified for
Substituted Filing of Income Tax Return (ITR).
Clarifications:
1. Submission of BIR Form No. 2316 (duplicate
original copy) to BIR Office
The provisions of Section 12 of RR No.
11-2018 prescribe the manner of distribution of
duly accomplished three (3) copies of BIR Form
No. 2316. On the other hand, the provisions of RR
No. 2-2015 prescribe the manner of submission of
the duplicate original copy of BIR Form No. 2316
to the BIR Office.
Hence, RR No. 11-2018 did not
re-introduce the submission of the said form in
physical or hard duplicate original copies by
employers to the BIR Office, in so far as the
concerned taxpayers duly registered under the
Large Taxpayers (LT) Service, or other non-LT
registered taxpayers who opted to submit thru the
Digital Versatile Disk (DVD) prescribed under RR
No. 2-2015.
The Universal Storage Bus (USB) memory
stick or other storage devices may be used in
absence or unavailability of the DVDs provided
that the scanned copies of the said forms shall be
made in uneditable format.
2. Submission to BIR Office of Certified List of
Employees Qualified for Substituted Filing of ITR
(Annex "F" of RR No. 11-2018)
Annex "F" of RR No. 11-2018 prescribed
the specific format for the preparation of the
Certified List of Employees Qualified for
Substituted Filing of ITR, it was observed that the
table provided therein for the prescribed list is only
applicable for employers with eighteen (18) or less
employees. Accordingly, in case additional pages
are attached to the certification in order to
accommodate additional employees or a separate
list is prepared as an attachment to the
certification, a reference statement to the...
QUALITY ASSURANCE BULLETIN I February 2019 Edition 5
additional pages or attachment shall be clearly
indicated in the certification, with the signature of
the certifying employer.
Further, the submission of un-notarized
certified list may be allowed by this Bureau
provided that all the pages attached to the
certification are duly signed by the certifying
employer or its authorized representative.
REVENUE MEMORANDUM CIRCULAR
NO. 27-2019
Circularizing Enhanced BIR Registration Forms Due to
the Implementation of Tax Reform for Acceleration
and Inclusion (TRAIN) Law.
This Circular is issued to inform taxpayers on the
availability of the enhanced version (January 2018
ENCS) of the registration forms, hereto attached
as "Annex A-F" which was revised due to the
implementation of the TRAIN Law.
REVENUE MEMORANDUM CIRCULAR
NO. 28-2019
Prescribes the use of BIR Printed Receipt/Invoice.
All persons subject to an internal revenue
tax shall, at the point of each sale and transfer
of merchandise or for services rendered valued
at One Hundred Pesos (P100.00), issue duly
registered receipts or sale or commercial
invoices.
New business registrants are required to
secure Authority to Print (ATP) principal
receipts/invoices upon registration with the BIR.
However, in order for them to immediately
commence business operations after registration,
they shall be allowed to secure BPR/BPI at the
time of registration from the New Business
Registrant Counter in the meantime that their
receipts are being printed. They shall be allowed
to use the said BPR/BPI for a period of fifteen
(15) days from the date of registration, hence,
the number of booklets to be issued shall be
limited to the estimated number of transactions
for such period. However, new business
registrants may opt not to avail of the BPR/BPI
and make use of their own receipts/invoices
covered by the ATP issued during registration.
The BPR/BPI shall be issued as principal
evidence in the sale of goods and or properties
and or services or lease of properties. It can
be used as a supporting document in claiming
expenses as deduction from ordinary gross
income or claim as input tax credit subject to
existing rules and regulations on invoicing
requirements for taxation purposes.
Only the BIR is allowed to print and
issue the BPR/BPI. A separate revenue
issuance shall be issued prescribing the
format to be used in printing the BPR/BPI to
conform with existing revenue issuances. All
existing BPR in the BIR offices that do not
comply with the format showing required
information are deemed invalid and subject to
appropriate disposal/destruction.
Continuation...
Form No.
Description
1901
(Annex “A”)
Application for Registration for
Self-Employed (Single Proprietor/
Professional), Mixed Income Individuals,
Non-Resident Alien Engaged in Trade/
Business, Estate and Trust
1902
(Annex “B”)
Application for Registration for Individuals
Earning Purely Compensation Income
(Local and Alien Employee)
1903
(Annex “C”)
Application for Registration For Corporations,
Partnerships (Taxable/Non-Taxable),
Including Government Agencies
And Instrumentalities (GAIs),
Local Government Units (LGUs),
Cooperatives and Associations
1904
(Annex “D”)
Application for Registration for
One-Time Taxpayer and Person
Registering under E.O. 98
(Securing a TIN to be able to transact
with any government office)
1905
(Annex “E”)
Application for Registration Information
Update/Correction/Cancellation
1906
(Annex “F”)
Application for Authority to Print Receipts
and Invoices
QUALITY ASSURANCE BULLETIN I February 2019 Edition 6
REVENUE MEMORANDUM CIRCULAR
NO. 29-2019
Keeping, Maintaining and Registration of Books of
Accounts.
The following are the relevant excerpts on the
said circular:
1. Books of Accounts shall be kept at all times in
the place of business of the taxpayer.
2. All entries in the Manual Books of Accounts
shall be handwritten.
3. The manual books of accounts shall be
registered before the deadline for filing of the
first quarterly income tax return or the annual
income tax return whichever comes earlier.
4. Loose leaf books of accounts/invoices/receipts
and other accounting records shall be
permanently bound and presented for
registration together with a sworn statement.
5. Corporations, companies, partnerships or
persons whose gross annual sales, earning,
receipts or output exceed P3,000,000.00, shall
have their books of accounts audited and
examined yearly by independent CPAs.
6. Preservation of books - for a period of 10 years
reckoned from the day following the deadline in
filing a return, or if filed after the deadline, from
the date of filing of the return, for the taxable
year when the last entry was made in the
books of accounts.
7. Within the first 5 years - the taxpayer shall
retain hard-copies of the books of accounts,
including subsidiary books and other
accounting records. Thereafter, the taxpayer
may retain only an electronic copy of the
hard-copy.
REVENUE MEMORANDUM CIRCULAR
NO. 30-2019
Clarifying Section 100 of National Internal Revenue
Code (NIRC) of 1997, as amended by Republic Act
(RA) No. 10963, or the Tax Reform for Acceleration
and Inclusion (TRAIN Law) in Relation to Sale of
Shares of Stock Not Traded or Listed.
The legislative intendment of the “deemed
gift” provision under Section 100 of the Tax Code
is to discourage the parties to a sale from
manipulating their selling price in order to save on
Income Taxes. This is because under the Tax
Code, the measurement of gain from a disposition
of property merely considers the amount realized
from the sale, which is the selling price minus the
basis of the property sold. Hence, if the parties
would declare a lower selling price per document
of sale than the actual amount of money which
changed hands, there is foregone revenue and
the government is placed at a very
disadvantageous position. In order to plug this tax
leakage, Section 100 automatically treats the
disparity between the Fair Market Value (FMV)
and selling price of the property as gift subject to
Donor’s Tax. In short, the “deemed gift” provision
compliments the Income Tax rule on the
measurement of gain and, accordingly, works to
avoid the recurrence of under-declaration of the
selling price. Thus, if the FMV of the shares of
stock is higher than the selling price, the excess/
difference shall be treated as gift subject to
Donor’s Tax.
Thus, starting January 1, 2018, when
shares of stock not traded in stock exchange are
sold for less than its FMV, the excess of the FMV
over the selling price shall be treated as gift
subject to Donor’s Tax imposed by Section 100 of
the 1997 NIRC, as amended, except when it is
sold at arm’s length, free from any donative intent
(in the ordinary course of business).
The determination of whether the sale of
shares of stock not listed and traded is at arm’s
length is a question of fact and not of law. The
evidence that should be presented should be
viewed in accordance with its relation and
relevance to the transaction on a case to case
basis.
QUALITY ASSURANCE BULLETIN I February 2019 Edition 7
1MAPLE SALES, INC
(Petitioner)
versus
COMMISSIONER OF INTERNAL REVENUE (Respondent)
Before the Court is a Petition for Review
seeking the nullification of the Decision dated
December 16, 2016 ("Assailed Decision") and
Resolution dated May 15, 2017 ("Assailed
Resolution") of the Court of Tax Appeals Second
Division ("Second Division"), upholding the
assessment Respondent issued against
Petitioner for deficiency Improperly Accumulated
Earnings Tax (IAET) for taxable year 2009 plus
deficiency and delinquency interests.
Petitioner raises the following grounds in
support of its petition:
1. The Second Division erred in its finding that
Petitioner failed to pass the so-called
“Immediacy Test”;
2. The Second Division erred in its finding that
for the year 2009, Petitioner failed to
disclose in its Notes to Financial Statements
the appropriations made, which are
significant transactions and / or information
that the stockholders, the government, and
the public should be apprised about.
3. The Second Division erred in its finding that
the Net Retained earnings as of December
31, 2009 is a proper subject in the
examination of Petitioner's books of
accounts for the taxable year 2009 instead of
taxable year 2010; and
Petitioner failed to submit a clear proof to
substantiate its argument such as a copy of minutes of
the meeting of its Boards, the Board
Resolution, or a memorandum recommending the
appropriation of such retained earnings for its
definite planned expansion.
4. Assuming that Petitioner may be held liable
for lAET in the year under audit (2009), the
Second Division erred in its finding that the
computation of IAET should include
Retained earnings of prior years.
Petitioner claims that certain payments
of payables and loans made by Petitioner in
2010 would have been difficult if not for the
appropriation of retained earnings as of
December 31, 2009. This is an immediate
"reasonable needs of the business" that
justifies the appropriation made in 2010, and is
well within the meaning of the "immediacy
test". Moreover, the increases in appropriation
from 2007 to 2009 were justified by the increases
in the volume of transactions, and should not be
taken against Petitioner.
The Court finds that the bare allegations of
its witnesses with respect to the connection of
the Executive Marketing Agreement to the
planned expansion are also self-serving, without
any document presented as to their link.
Earnings reserved for corporate expansion
projects or programs requiring considerable
capital expenditure as approved by the Board of
Directors must be definite. Since there is
failure to connect the Executive Marketing
Agreement with the intended "planned
expansion" for Petitioner's appropriation of
retained earnings, its justification as to its
increase in appropriation, as well as its
insufficiency in its working capital in the year
2010, would no longer hold water. Tax
exemptions are never presumed and are
strictly construed against the taxpayer and
liberally in favor of the taxing authority.
The supposed unforeseeable events also
run counter to the "immediacy test". The
retained earnings were not even immediately
utilized as there was in fact increase of the same
in the succeeding years.
WHEREFORE, premises considered, the
Petition for Review filed with the Court En Banc is
DENIED for lack of merit.
QUALITY ASSURANCE BULLETIN I February 2019 Edition 8
PEOPLE OF THE PHILIPPINES
(Plaintiff)
versus
BENEDICTO P. CAGUIMBAL
(Accused)
For resolution is the "Motion for
Reconsideration" filed by accused through his
counsel praying that the Decision be set aside and
that an order of acquittal be issued.
In her "Motion for Reconsideration”,
accused repeatedly claims that the basis in filing
the criminal complaint against him is the Letter
Notice; that there was no Letter of Authority (LOA)
issued in relation to the instant cases; that the
revenue officers who conducted an examination on
accused have no authority to examine and issue
tax assessments; that his right to due process was
violated because he was not served with a copy of
the assessment notices and other notices sent
by the Bureau of Internal Revenue (BIR). Thus,
he cannot be said to have willfully and deliberately
violated the provisions of the National Internal
Revenue Code (NIRC) of 1997.
On the other hand, in the Comment/
Opposition of the plaintiff, it states that it agrees
with the assailed Decision, hence, the accused's
"Motion for Reconsideration" should be denied for
lack of merit; that the elements of violation of
Section 255 of the NIRC of 1997 are attendant in
the instant cases; that accused cannot validly
claim that his right to due process was violated
since the assessment and other BIR letters/
communications were sent to his registered
address at 2240-B Severino Reyes Street, Sta.
Cruz, Manila, though he admitted that he never
hold office therein; that it was only later or on June
13, 2013, when the case...
was already under preliminary investigation at
the Department of Justice (DOJ) that accused,
in his Sinumpaang Ganting Salaysay wherein he
indicated that his residence address is at Unit C
218 2F, Bldg. C, El Pueblo Manila, Sta. Mesa,
Manila; that at that time, all the notices were
already sent to accused's registered address;
and that an assessment, whether valid or void,
shall become final and executory, when no
administrative protest is filed within thirty (30)
days from receipt of the assessments.
Accused argues that the revenue
officers who conducted an examination of his
tax liabilities were not authorized because
there was no LOA issued. Hence, the
assessment made is null and void.
Consequently, the finding of guilt against him is
unwarranted.
This Court finds accused argument
unmeritorious. Accused was charged of
violation of Section 255 of the NIRC for his
failure to declare his income and to pay the
corresponding taxes thereon. Accused may be
prosecuted even without an assessment
pursuant to Section 222 of the NIRC. Hence,
the prosecution of criminal cases against
accused may proceed even without an
assessment.
WHEREFORE, in view the
foregoing considerations, the accused's
"Motion for Reconsideration" is DENIED for
lack of merit. The assailed Decision dated
September 26, 2018 is AFFIRMED with
MODIFICATION.
Failure to declare his income and to pay the corresponding taxes thereon is a violation of Section 255 and the accused may be prosecuted even without an assessment pursuant to Section 222 of the NIRC.
Hence, the prosecution of criminal cases against accused may proceed even without an assessment.
QUALITY ASSURANCE BULLETIN I February 2019 Edition 9
SEC Memorandum Circular No. 2
Series of 2019
Amendments to Rule 5.8.2 of the Investment
Company Act Implementing Rules and Regulations.
The amended Rule read as follows:
5.8.2. Responsibilities of Independent
Accountants or Auditors
(a) - To observe the principles on the
expectation for an effective audit function issued
by the Commission under Financial Reporting
Bulletin No. 19 and any amendments thereto;
(b) - Perform the audit of financial statements
of the Investment Company, Fund Managers, and
Fund Distributor in accordance with the
requirements of the Philippine Standards on
Auditing, the Ethical Standards under
International Ethics Board of Accountants (IESBA)
Code of Ethics for Professional Accountants, and
the relevant regulatory issuance of the
Commission such as SRC Rule 68, as amended
and Financial Reporting Bulletin.
(c) - Report to the Commission any
non-compliance by the Investment Company,
Fund Manager, and Fund Distributor with their
contractual and regulatory requirement, based
solely on the matters discovered from performing
the audit. The engagement contract between said
companies and the independent auditor shall
contain a provision that the disclosure information
by the independent auditor to the Commission
shall not constitute a breach of confidentiality nor
shall it be ground for civil, criminal or disciplinary
proceedings against the independent auditor."
These amendments shall take effect and shall be
applicable beginning 2018 audit engagement.
SEC Memorandum Circular No. 4
Series of 2019
Sustainability Reporting Guidelines For
Publicly-Listed Companies.
To promote sustainability reporting and
make it relevant for Philippine publicly-listed
companies (PLCs), the Commission, in its
en banc meeting on 12 February 2019, resolved
to issue the Sustainability Reporting Guidelines for
Publicly-Listed Companies attached to this
Memorandum Circular.
The Guidelines is intended to help PLCs
assess and manage non-financial performance
across Economic, Environmental and Social
aspects of their organization and enable PLCs to
measure and monitor their contributions towards
achieving universal targets of sustainability, such
as the United Nations Sustainable Development
Goals, as well as national policies and programs.
Submission with SEC Form 17-A
The reporting template (Annex A of the
Guidelines) shall be submitted together with
the company's Annual Report (SEC Form 17-A).
The first report shall be attached to the
2019 Annual Report to be submitted in 2020.
For companies who already have
sustainability reports in accordance with
internationally recognized frameworks and
standards, their reports shall already be
considered as their compliance with the reporting
template. Companies may choose to attach the
whole sustainability report to their Annual Report
or just include a statement providing a link to said
report.
QUALITY ASSURANCE BULLETIN I February 2019 Edition 10
Comply or Explain Approach
The Guidelines shall be adopted on a
"comply or explain" approach for the first three
years upon implementation. By "comply or
explain", it means that companies would be
required to attach the template to their Annual
Reports but they can provide explanations for
items where they still have no available
data on.
Non-attachment of the Sustainability
Report to the Annual Report shall be subject to
the penalty for Incomplete Annual Report
provided under SEC Memorandum Circular No.
6, Series of 2005 (Consolidated Scale of Fines).
Implementation of the Requirements of the New
General Information Sheet (GIS), SEC
Memorandum Circular No. 17 (2018).
Quoted below is the resolution from the
Minutes of the Commission Meeting held on 26
February 2019 which reads:
"RESOLVED, To DEFER the submission
of the new General Information Sheet
(GIS) containing the Beneficial
Ownership Disclosure page to 30 June
2019. Hence, by 30 June 2019, filers
are expected to use and shall submit
the new GIS containing the
Beneficial Ownership Disclosure page."
New Company Registration System (CRS) Users (LEAP)
Lane for Express Application Processing.
The Securities and Exchange Commission
is announcing the availability of LEAP or Lane for
Express Application Processing. New
Company Registration System (CRS)
applicants or users are encouraged to utilize
LEAP to expedite the process and approval of
their corporate registration.
Continuation...
QUALITY ASSURANCE BULLETIN I February 2019 Edition 11
PRC Resolution No. 2019-1146 Series of 2019
AMENDING RELEVANT PROVISIONS OF RESOLUTION NO. 1032
(s. 2017) OTHERWISE KNOWN AS THE “IMPLEMENTING RULES AND
REGULATIONS (IRR) OF REPUBLIC ACT NO. 10912, ALSO KNOWN AS
THE CONTINUING PROFESSIONAL DEVELOPMENT (CPD) ACT OF 2016
Key Provisions and Changes:
CPD remains a mandatory requirement for the
renewal of the PRC ID of all registered and
licensed professionals.
Significant reduction in number of required
CPD units for the renewal of professional
license which should not exceed 15 units.
Section 10.2b of the 2019 resolution states that
“various Continuing Professional Development
(CPD) Councils shall reduce the required
CPD credit units to a minimum, which shall
not be more than fifteen (15), as provided for
under applicable laws.”
In-house training programs and
capacity-building activities of government
agencies and government corporations,
including local government units and private
employers shall be accredited and considered
as CPD compliance of their employed
professionals.
Professionals who renewed their PRC ID’s by
signing an undertaking shall only comply to the
required 15 CPD units, in pursuant to the
resolution.
Other Provisions:
An indefinite transition period was also set.
During this transition period, professionals
working abroad are temporarily
exempted from CPD requirement.
Further, newly licensed professionals are
temporarily exempted from CPD
requirements for the first renewal
cycle after obtaining their respective
professional licenses.
Implementation
Commissioner said the completion of the
transition period will differ for the 43
professions they regulate, depending on the
compliance to the deliverables stipulated in
the amended IRR for the CPD Act.
Professional Regulation Boards (PRB) and
CPD councils should update their operational
guidelines for the CPD Act.
They also need to link the CPD units with the
career progression track in their respective
professions and come out with modules for
CPD programs.
Operational guidelines are expected to be
enforced by the Accredited Integrated
Professional Organization (AIPO) and
Accredited Professional Organizations (APO).
QUALITY ASSURANCE BULLETIN I February 2019 Edition 12
This bulletin is a compilation of relevant issuances, rulings and memoranda from various government agencies to enhance the
technical skills of the professional staff of Paguio, Dumayas and Associates, CPAs and is not intended to replace the original
issuances of the related government agencies.
PAGUIO, FLOYD C.
Managing Partner
GALLEGOS, AIRA G.
Tax Specialist
MELCHOR, AILEEN P.
Senior Tax Specialist
ASADON, KEN JOHN B.
Tax Supervisor
Unit 3207 Cityland Pasong Tamo Condominium, Pasong Tamo St., Barangay Pio del Pilar, Makati City
Contact us at: 950-9853/950-9854
We are a team of Certified Public Accountants, who aim to be the
accounting firm of choice for business entities in terms of:
Audit and Assurance
Taxation
Business Process Outsourcing
Management Consultancy
RULLODA, JOHN ERIC M.
Tax Specialist