13. Receipt of notice of assessment............................................ 493 14. Prescriptive period for collection ......................................... 493
D. BOOKKEEPING FORMS 1. Explanatory note for Form No. 1......................................... 495 2. Explanatory note for Form No. 2......................................... 497 3. Form No. 3 ............................................................................ 499 4. Form No. 4 ............................................................................ 500 5. Form No. 5 ............................................................................ 502 6. Annex “A”.............................................................................. 504 7. Annex “B”.............................................................................. 505 E. ADMINISTRATIVE PROVISIONS 1. Registration of each type of internal revenue tax .............. 506 2. Registration of name or style............................................... 508 3. Persons required to issue receipts or sales or commercial invoices ................................................... 509 4. Persons not required to issue receipts or sales or commercial invoices ................................................... 510 5. Information of purchaser required to be stated in the receipts and commercial invoices ................................. 511 6. Preservation of receipts and commercial invoices ............. 511 7. Use of cash register machines, point of sales machines and/or business machines generating receipts/invoices .......................................... 511 8. Registration of printer’s certificate of delivery of receipts and invoices .................................................. 515 9. Electronic issuance of receipts or sales or commercial invoice ........................................................ 517 10. Electronic sales reporting system ....................................... 518 11. Sign to be exhibited by distiller, rectifier, etc. .................... 518 12. Sign to be exhibited by manufacturers of products of tobacco ..................................................... 518 13. Exhibition/production of certificate of payment ................. 519 14. Continuation of business of a deceased person/by transferor/under new name .......................... 519 15. Removal of business to other location ................................. 519 16. Taxpayer identification number .......................................... 519 17. Reportorial requirements of owners of establishments for lease ................................................ 521
THE LAW ON TRANSFER AND BUSINESS TAXATION
21. Language to be used and translation of entries ................. 477 22. Where to keep books of accounts ......................................... 477 23. Preservation of books and records....................................... 477 24. Preservation for 10 years for assessment ........................... 478 25. Meaning of phrase “last entry” ............................................ 481 26. Duty in retirement or dissolution........................................ 481 27. Return or destruction of books and records submitted ........................................................................ 481
B. AUDIT BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
xxiii 1. When yearly audit required................................................. 482 2. Scope of audit to be performed ............................................ 482 3. Accountant’s certificate ........................................................ 482 4. Authority of Commissioner to prescribe additional requirements ................................................ 483 5. Manner of signing the certificate......................................... 483 6. Who is a certified public accountant ................................... 484 7. Who is an independent certified public accountant............ 484 8. Scope of work of certified public accountants ..................... 485 9. Relatives within the third civil degree................................ 485 10. Part-time employment of children of certified public accountant ........................................ 486 11. Authority of Commissioner to accredit and register tax agent .................................................... 486 C. INSPECTION AND EXAMINATION 1. Jurisdiction in inspection of books ...................................... 486 2. Authority of other offices to make examination ................. 487 3. Examination of books of tax-exempt organizations............ 488 4. Examination of books preparatory to assessment.............. 488 5. Letter of authority required for examination ..................... 488 6. Right of taxpayer to refuse examination............................. 488 7. Time and place of examination............................................ 489 8. Frequency of examination.................................................... 489 9. Retention of books of accounts taken out for examination .............................................................. 490 10. Production of books of accounts under a subpoena duces tecum ................................................. 490 11. Prescriptive period for assessment...................................... 492 12. When assessment deemed made ......................................... 493 13. Receipt of notice of assessment............................................ 493 14. Prescriptive period for collection ......................................... 493 D. BOOKKEEPING FORMS 1. Explanatory note for Form No. 1......................................... 495 2. Explanatory note for Form No. 2......................................... 497 3. Form No. 3 ............................................................................ 499 4. Form No. 4 ............................................................................ 500 5. Form No. 5 ............................................................................ 502 6. Annex “A”.............................................................................. 504 7. Annex “B”.............................................................................. 505 E. ADMINISTRATIVE PROVISIONS 1. Registration of each type of internal revenue tax .............. 506 2. Registration of name or style............................................... 508 3. Persons required to issue receipts or sales or commercial invoices ................................................... 509 4. Persons not required to issue receipts or sales or commercial invoices ................................................... 510 5. Information of purchaser required to be stated in the receipts and commercial invoices ................................. 511 6. Preservation of receipts and commercial invoices ............. 511 7. Use of cash register machines, point of sales machines and/or business machines generating receipts/invoices .......................................... 511 8. Registration of printer’s certificate of delivery of receipts and invoices .................................................. 515 9. Electronic issuance of receipts or sales or commercial invoice ........................................................ 517 10. Electronic sales reporting system ....................................... 518
Chapter 8. — LOCAL TAXATION A. INTRODUCTION
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1. Loca l governments in the Philippines ................................. 523 2. Dual status of local governments ........................................ 523 3. Taxing power of local governments ..................................... 524 B. LOCAL TAXING POWER IN GENERAL 1. The Local Government Code................................................ 524 2. Local authority that shall exercise taxing power ............... 525 3. Fundamental principles governing local taxation ........................................................................... 526 4. Common limitations on the taxing powers of local governments ...................................................... 527 5. Meaning of certain terms..................................................... 530 6. Where imposition of tax, fee, or charge not specifically authorized............................................. 534 7. Rule where person already taxed on his main business ................................................................. 534
C. TAXING AND OTHER REVENUE-RAISING POWERS OF PROVINCES
1. Scope of power ...................................................................... 535 2. Tax on transfer of real property ownership ........................ 536 3. Tax on business of printing and publication....................... 537 4. Franchise tax ........................................................................ 538 5. Sand and gravel tax ............................................................. 539 6. Meaning of occupation, calling, and profession .................. 539 7. Professional tax .................................................................... 540 8. Nature and application of the tax ....................................... 541 9. Requisites for liability to the tax ......................................... 541 10. Privilege tax receipt not an authority to exercise profession ..................................................... 542 11. Criterion for taxability of a profession ................................ 542 12. Taxability of profession conducted at a loss........................ 542 13. Liability of person engaged in two or more professions ........................................................ 542 14. Meaning of amusement and amusement places................. 543 15. Amusement tax on admission.............................................. 544 16. Nature of the tax .................................................................. 545 17. Liability for payment of the tax........................................... 545
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