You are on page 1of 25

(1)

June 1, 1998

REVENUE MEMORANDUM ORDER NO. 53-98


SUBJECT : Checklist of Documents to be Submitted by a Taxpayer upon Audit of his Tax Liabilities as well as of the Mandatory Reporting Requirements to be Prepared by a Revenue Officer, all of which Comprise a Complete Tax Docket All Internal Revenue Officers, Employees and Others Concerned

TO I.

Background

It has been observed that for the same kind of tax audit case, Revenue Officers differ in their request for requirements from taxpayers as well as in the attachments to the dockets resulting to tremendous complaints from taxpayers and confusion among tax auditors and reviewers.
cdphil

For equity and uniformity, this Bureau comes up with a prescribed list of requirements from taxpayers, per kind of tax, as well as of the internally prepared reporting requirements, all of which comprise a complete tax docket. II. Objective This order is issued to: a. b. III. Identify the documents to be required from a taxpayer during audit, according to particular kind of tax; and Identify the different audit reporting requirements to be prepared, submitted and attached to a tax audit docket.

List of Requirements per Tax Type

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

Philippine Taxation Encyclopedia 2012

Income Tax/ Withholding Tax Annex A (3 pages) Value Added Tax Annex B (2 pages) Annex B-1 (5 pages) Percentage Tax Annex C (2 pages) Documentary Stamp Tax Annex D (1 page) Estate Tax Annex E (4 pages) Donor's Tax Annex F (2 pages) Withholding Tax Remittance Return/Capital Gains Tax Return/Documentary Stamp Tax (For transactions involving onerous transfer of real property) Annex G (2 pages) Capital Gain's Tax Return/Documentary Stamp Tax (For transactions involving onerous transfer of shares of stock not traded through a local stock exchange) Annex H (1 page) Withholding Tax Remittance Return/Capital Gains Tax Return (For transactions involving onerous transfer of motor vehicles) Annex I (1 page) It is to be emphasized that before a docket be released by an investigating office, each and every page thereof be consecutively numbered. It is worth mentioning, likewise, that an investigating Revenue Officer/Tax Auditor must always request for the presentation of books of accounts, and accounting/business records, specifically, records affecting the income, receipts, deductions, estate and other taxable transaction of a taxpayer during the audit.
LibLex

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

Philippine Taxation Encyclopedia 2012

IV.

Repealing Clause

All existing issuances or parts thereof which are inconsistent herewith are hereby repealed. V. Effectivity This order takes effect immediately.
cda

LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue


ANNEX A

INCOME TAX/WITHHOLDING TAX

A)

Requirements from Taxpayer 1) Certified Financial Statements, including comparative Profit and Loss Statement with Statement of Cost of Goods Manufactured and Sold, if applicable Proof of claimed tax credit/s, if applicable Proof of the claimed "Interest Expense", if applicable Proof of claimed Bad Debts/worthlessness of credits, if applicable Reconciliation of "Book Income" and "Taxable Income" Certificate of Registration issued by the appropriate regulatory agency, together with the conditions attached to such registration, if applicable Proof of Exemption under special laws, if applicable Certification of the appropriate regulatory agency as to taxpayer's entitlement to tax incentives, if applicable Xerox copy of used Tax Credit Certificate with annotation of issued TDM at the back, if applicable Proof of payment of deficiency tax, if any/applicable a) current year/period b) previous year/period Reports submitted to applicable regulatory agency that reflects the financial condition and result of operation of the taxpayer e.g., Annual
Philippine Taxation Encyclopedia 2012 3

2) 3) 4) 5) 6) 7) 8) 9) 10)

11)

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

Statement prepared by insurance companies submitted to the Insurance Commission etc., if applicable B.) Reporting Requirements to be prepared and/or submitted by the Revenue Officers 1) 2) Letter of Authority/Audit Notice Duly filed Income Tax Return with all the required attachments (Account Information Form, Schedule of Taxes and Licenses, Schedule of Income Producing Properties, Schedule of Depreciation, Breakdown of Selling and Administrative Expenses, etc.). Proof of payment of the tax, including Tax Debit Memo/TCC Quarterly Income Tax Returns Proof of payment of second installment INCOME TAX, if applicable Beginning and Ending Inventory List, if material/applicable Notice of Loss; Proof of claimed Losses, if applicable Duly validated Monthly Withholding Tax Returns Duly validated Quarterly Withholding Tax Returns, if applicable Duly validated Annual Withholding Tax Returns together with the required attachments (Alpha List) Duly received Information Returns Form 1717 Series / Form 0500 Series (Audit Reports) Narrative Memorandum Report Revenue Officer's Activity Report / Log Sheet Table of Contents Working Papers of the monthly debit and credit balances of all accounts duly signed by the Tax Auditors/Revenue Officers Working Papers showing computation of income and/or withholding taxes due duly signed by the Tax Auditors/Revenue Officers Schedule of Advances Schedule of Interest Expense and Loans / Notes Payable (mention the creditor/s, date contracted/granted, principal loan, interest rate and interest expense), if applicable Schedule of Bad Debts, if applicable Schedule of Loss, if applicable Schedule of Advances from Officers and Stockholders, if applicable Schedule of Advances to Officers and Stockholders, if applicable Schedule of Miscellaneous Income, if material/applicable Schedule of Miscellaneous Expense, if material/applicable Schedule of Interest Income (give details as to source/s and amount), if material/applicable Schedule of Other Receivables/Miscellaneous Receivables, if
Philippine Taxation Encyclopedia 2012 4

3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

20) 21) 22) 23) 24) 25) 26) 27)


Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

28) 29)

30)

31) 32) 33) 34) 35) 36) 37)

38) 39) 40) 41) 42) 43)

material/applicable Schedule of Other Payables, if material/applicable Computation of Realized Gross Profit and Unrealized Gross Profit, if the taxpayer is engaged in the business of selling real estate, whether by installment or lump sum Computation of Realized Gross Profit and Unrealized Gross Profit, if the taxpayer is engaged in the business of selling personal properties by installment Computation of Gross Income from Contracts, if the taxpayer is engaged in "Construction Business" Detailed reconciliation of "Book Income" and "Taxable Income", if necessary Reconciliation of the Financial Statements' figures with the Withholding Tax Returns' and Information Returns' figures Checklist of audit procedures undertaken Agreement Form (for agreed assessment) Notice for an Informal Conference/Post Reporting Notice with the summary of findings (for non-agreed assessment) Comparative Report of Deficiency Tax Paid/Assessed, if applicable a) current year/period b) previous year/period Docket Locator Form Delinquency Verification Report (for Claims for Refund / TCC ) Authority to Issue Refund / TCC ( for Claims for Refund / TCC ) Breakdown of Control Accounts, if applicable Certification by the Revenue District Office, that he could not locate the BIR copy of the tax return etc., if applicable Result of Tax Mapping Program or Third Party Information Program for LAs/Audit Notices issued thereunder

Note: In case of non-availability of documents from RDO / RDC mentioned in B.2 - B.11, request photocopies thereof from taxpayer
LLjur

ANNEX B VALUE-ADDED TAX


Copyright 2012 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia 2012 5

A)

Requirements from Taxpayers 1) 2) 3) Proof of claimed tax credits Proof of Tax Compliance Certificates applied Xerox copy of used Tax Credit Certificate (TCC) with annotation of issued TDM at the back, if applicable Proof of payment of deficiency tax, if any a) b) 5) current year/period previous year/period

4)

Certification of the appropriate government agency as to taxpayer's entitlement to tax incentives, if applicable Xerox copies of the Official Receipts evidencing VAT payment on imported purchases, if applicable Proof of exemption under special law, if applicable
acIASE

6)

7) 8)

Certification of the appropriate regulatory agency as to the exempt or zero-rated sales of the taxpayer under its regulatory supervision, if applicable Certificate of Registration issued by the appropriate regulatory agency, together with the conditions attached to such registration, if applicable Proof of "Approval for Effective Zero-Rating of Sales", if applicable Sample invoice/s for "Export/Exempt Sales", if applicable Proof that the acceptable foreign currency exchange proceeds on export sales/foreign currency denominated sales had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP), if applicable
aEHASI

9)

10) 11) 12)

B)

Reporting Requirements to be prepared and/or submitted by Revenue Officers

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

Philippine Taxation Encyclopedia 2012

1) 2) 3)

Letter of Authority / Audit Notice Duly validated Monthly VAT Declarations Duly validated Quarterly VAT Returns together with a) b) Summary List of Sales and Output Tax; and Summary List of Purchases and Input Tax, if applicable

4) 5) 6) 7) 8) 9) 10) 11)

Proof of claimed tax credit, if applicable Proof of payment of the tax Proof of Tax Debit Memo (TDM) applied, if applicable Form 1717 Series / Form 0500 Series (Audit Report) Narrative Memorandum Report Revenue Officer's Activity Report / Log Sheet Table of Contents Working Papers duly signed by the Tax Auditors / Revenue Officers a) b) c) Computation of the Value-added tax due Computation of Taxable Receipts/Sales (Tax Base) Computation of Adjustment to Sales and Output Tax, if applicable Computation of Adjustment to Purchases and Input Tax, if applicable
SEAHcT

d)

e) f)

Computation of Allowable Input Tax Reconciliation of Financial Statements' figures and VAT Returns' figures Schedule of Sales and Output Tax, if the same is not attached to the tax return
Philippine Taxation Encyclopedia 2012 7

g)

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

h)

Schedule of Purchases and Input Tax, if the same is not attached to the tax return Schedule of Export Sales, if applicable Schedule of "Zero-rated Sales" other than export sales, if applicable Schedule of Exempt Sales, if applicable Schedule of Importation, with breakdown of the composition of the landed cost/tax base, VAT payment, O.R. No. and date of the O.R., if applicable Allocation of Input Tax among Exempt Sales, Zero-rated Sales and Taxable Sales, if applicable Schedule of Certificate of Tax Compliance applied against VAT liabilities, if applicable

i) j)

k) l)

m)

n)

12) 13) 14) 15)

Certificate of Non-VAT Registration, if applicable Checklist of audit procedures undertaken Agreement Form (for agreed assessment) Post Reporting Notice / Notice for an Informal Conference with the Summary of Findings (for non-agreed assessment)
AECacT

16)

Comparative Report of Deficiency Tax Paid/Assessed, if applicable a) b) current year/period previous year/period

17) 18)

Docket Locator Form Copy of the certified Financial Statements covering the period under audit Copy of "Access to Records" letter, if third party verification was conducted, and the documents gathered thereunder

19)

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

Philippine Taxation Encyclopedia 2012

Note: In case of non-availability of documents from RDO/RDC mentioned in B.2 - B.6, request photocopies thereof from taxpayer.
AECacT

ANNEX B-1

VALUE ADDED TAX (For audit involving Claim for Refund / TCC)

A.)

Requirements from Taxpayer I. II. Requirements mentioned in Annex B Additional General Requirements 1) 2) 3 copies of "Application for VAT Credit / Refund" Summary List of Local Purchases specifying the following:
Amount of Purchase Total Input Invoice Tax Amount

Registered VAT Name of Number Supplier of Supplier

Invoice Number

Date of Invoice

OR No.

Date of OR

3)

Photocopies of VAT purchase invoices for purchase of goods and official receipts for purchase of services. (The invoices/official receipts must be arranged according to the summary list) Summary of importations made during the period with the following details:
AWB/ BL No. Date of Arrival Total Value Date of Payment O.R. No.

4)

Date of Invoice

Supplier

Item

VAT

5)
Copyright 2012

Photocopies of invoices, import entry documents, official


Philippine Taxation Encyclopedia 2012 9

CD Technologies Asia, Inc. and Accesslaw, Inc.

receipts or confirmation receipts evidencing payment of VAT. (Segregate documents paid by cash from those paid by tax debit memo) 6) VAT Returns filed for the quarter showing that the amount applied for refund/TCC has been reflected as a deduction from the total available input tax, as well as VAT Return for the succeeding quarter Certification of taxpayer showing the amount of Zero-rated Sales, Taxable Sales and Exempt Sales A statement showing the amount and description of the sale of goods and services, name of persons or entities (except in case of exports) to whom the goods or services were sold and date of the transaction, where the applicant 's zero-rated transactions are regulated by certain government agency Articles of Incorporation for first time filers Sales Contract/Agreement BOI Certificate of Registration BIR Certificate of Registration Certification from BOI, DOF, BOC, EPZA, etc., that subject taxpayer has not filed similar claim for refund covering the same period Sworn statement that ending inventory as of the close of the period covered by the Claim has been used directly or indirectly in the products subsequently exported as supported by export documents, if the applicant is 100% exporter Documents of liquidation evidencing the actual utilization of the raw materials in the manufacture of goods at least 70% of which has been actually exported, if the applicant is an indirect exporter Copy of the ITR and Certified Financial Statements, if applicable Beginning and ending inventory of raw materials, work-in-process, finished goods, supplies and materials
Philippine Taxation Encyclopedia 2012 10

7)

8)

9) 10) 11) 12) 13)

14)

15)

16) 17)

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

III.

Additional Specific Requirements 1) For Export Sales (Semi-conductor companies, garments, food etc.) a. sales invoice number, name of buyer, airway bill / bill of lading number, lading date, amount of sales in foreign currency, peso value of sales, conversion rate, date of remittance, bank credit memo number and amounted remitted in pesos Photocopies of export documents: Invoices/ receipts evidencing sale of goods, as well as the name of the person to whom the goods were delivered with respect to foreign currency denominated sales export declaration/permit accredited agent bank showing that the proceeds of the sale in acceptable foreign currency had been inwardly remitted and accounted for in accordance with BSP rules and regulations. The statement should also show the amount in foreign currency of the export proceeds or consideration, date of export, date of inward remittance, conversion rate into Philippine currency and the total peso value thereof.

b. 1)

2) c.

2.

For Zero-Rated Sale of Services (contractors, mining, etc.) a. Authenticated copy/ies of the contract/s showing the person/s for whom the services were rendered, amount of consideration, description of the services and documents evidencing actual payments Photocopies of official receipts and billings together with a summary of the date of billing, name of principal, official receipt number, date of receipt, amount in foreign currency and the corresponding value thereof, date of remittance, name of bank, bank credit memo number and amount remitted in pesos Bank credit memoranda and certificate from the BSP with
Philippine Taxation Encyclopedia 2012 11

b.

c.
Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

information similar to 1-c (export sales) Additional Requirements for Manning Services: a) b). Monthly BSP report on income of agency received Breakdown of gross foreign receipts specifying the nature of foreign currency received (e.g. Commission, allotment manning fee, agency fee, advances, etc.) showing the total foreign currency value with its peso equivalent, bank credit memo number, name of bank and date of remittance
pred

3)

Effectively zero-rated sale of goods (mining, etc.)/services (contractors, etc.) a) Summary of Sales invoices/receipts showing the name of the person entity to whom the sale of goods or services were delivered, order of delivery, amount of consideration and description of goods or services delivered (RR 6-89 and RMC 2-90) Reconciliation of billings against payment Evidence of actual receipt of goods and services

b) c)

Additional Requirements for Mining Companies: a) b) Reconciliation of billings against actual collection Operating agreement with owner of mining claims, if applicable

4)

Purchase of Capital Goods a) Original copies of invoices/receipts showing the date of purchase, purchase price, amount of value-added tax paid and description of the capital equipment locally purchased On imported capital goods Photocopy of import entry documents and official receipts/confirmation receipts of payment issued by the
Philippine Taxation Encyclopedia 2012 12

b) 1)
Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

Bureau of Customs for value-added tax paid B.) Reporting Requirements to be prepared and/or submitted by the Revenue Officers I. II. Requirements mentioned in Annex B Additional Requirements (All the requirements mentioned above)

Note: In case of non-availability of documents from RDO / RDC mentioned in B.2 - B.6, request photocopies thereof from taxpayer

ANNEX C

OTHER PERCENTAGE TAXES

A)

Requirements from Taxpayer 1) 2) 3) 4) Proof of claimed tax credits Proof of payment of the tax Xerox copy of used Tax Credit Certificate (TCC) with annotation of issued Tax Debit Memo (TDM) at the back Proof of payment of deficiency tax a) current year/period b) previous year/period Certification of the appropriate government agency as to taxpayer's entitlement to tax incentives, if applicable Certificate of Registration issued by the appropriate regulatory agency, together with the conditions attached to such registration, if applicable Certification of the appropriate regulatory agency as to the exempt sales of the taxpayer under its regulatory supervision, if applicable Proof of exemption under special law, if applicable Sample invoice for "Exempt Sales", if applicable

5) 6) 7) 8) 9) B)
Copyright 2012

Reporting Requirements to be prepared and/or submitted by the Revenue Officers


CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia 2012 13

1) 2) 3) 4) 5) 6) 7) 8)

9) 10) 11) 12) 13) 14)

15) 16) 17)

Letter of Authority / Audit Notice Duly validated Percentage Tax Returns, including all the attachments thereto Tax Debit Memo applied, if applicable Form 1717 series / 0500 series (Audit Reports) Narrative Memorandum Report Revenue Officer's Activity Report/Log Sheet Table of Contents Working papers showing the computation of the taxable receipts/sales (tax base) and percentage tax due duly signed by the Tax Auditors/Revenue Officers Reconciliation of Financial Statements' figures and Percentage Tax Returns' figures Schedule of Exempt Sales/Transactions, if applicable Checklist of audit procedures undertaken Agreement Form (for agreed assessment) Post Reporting Notice/Notice for an Informal Conference with the SUMMARY OF FINDINGS (for non-agreed assessment) Comparative Report of Deficiency Tax Paid/Assessed, if applicable a) current year/period b) previous year/period Docket Locator Form Delinquency Verification Report (For Claims for Refund/TCC) Authority to Issue Refund/TCC (For Claims for Refund/TCC)
cda

Note: In case of non-availability of documents from RDO / RDC mentioned in B.2 - B.3, request photocopies thereof from taxpayer

ANNEX D

DOCUMENTARY STAMP TAX

A.)

Requirements from Taxpayer

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

Philippine Taxation Encyclopedia 2012

14

1) 2) 3) 4)

Proof of payment of the tax Xerox copy of used Tax Credit Certificate (TCC) with annotation of issued TDM at the back, if applicable Proof of Exemption under special laws, if applicable Proof of payment of deficiency tax, if any a) current year/period b) previous year/period

B.)

Reporting Requirements to be prepared and/or submitted by the Revenue Officers 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) Duly filed Documentary Stamp Tax Declaration Duly filed Documentary Stamp Tax Return Tax Debit Memo, if applicable Duly received Information Returns for Documentary Stamp Tax Letter of Authority / Audit Notice Form 1717 Series / Form 0500 Series (Audit Reports) Narrative Memo Report Revenue Officer's Activity Report / Log Sheet Table of Contents Working Papers showing details and computation of tax base duly signed by Tax Auditors/Revenue Officers Working Papers showing computation of Documentary Stamps Tax Due duly signed by Tax Auditors/Revenue Officers Checklist of audit procedures undertaken Agreement Form (for agreed assessment) Notice for an Informal Conference / Post Reporting Notice with the Summary of Findings (for non-agreed assessment) Comparative Report of Deficiency Tax Paid / Assessed a) current year/period b) previous year/period Docket Locator Form

16)

Note: In case of non-availability of documents from RDO / RDC mentioned in B.1 - B.4, request photocopies thereof from taxpayer
cdasia

ANNEX E
Copyright 2012 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia 2012 15

ESTATE TAX

A.)

Requirements from Taxpayer I. General 1) 2) Certified true copy of the DEATH CERTIFICATE NOTICE OF DEATH duly received by the BIR, if the gross taxable estate exceeds P20,000 for deaths occurring on or after Jan. 1, 1998; or if the gross taxable estate exceeds P3,000 for deaths occurring prior to Jan. 1, 1998 DEED OF EXTRA-JUDICIAL SETTLEMENT OF THE ESTATE, if the estate is settled extrajudicially SPECIAL POWER OF ATTORNEY, if applicable COURT ORDER/DECISION, if the estate is settled judicially A certified copy of the schedule of partition of the estate and the order of the court approving the same, if applicable Statement of the names of the executor, administrator and/or heirs, with their respective addresses, who may be made liable for unpaid assessment Income Tax Returns with all the needed attachments, and duly certified Financial Statements covering transactions in the year of death and one (1) year prior to the date of death Copy of the decedent's life insurance policy, if applicable Proof that the transfer of property is from a fiduciary heir or legatee to the fideicommissary, if applicable Proof that the transfer of property is from a first heir, legatee or donee to a beneficiary designated by the first heir's predecessor, if applicable Proof that the transfer of property is to a social welfare, cultural and charitable institutions, no part of the net income of which inures to the benefit of any individual and that not more than 30% of the transferred property is used by such institution for administration purposes, if applicable Proof of deficiency tax payment, if any a) current year/period b) previous year/period Requirements in the investigation of other internal revenue taxes,
LLphil

3) 4) 5) 6) 7)

8)

9) 10) 11)

12)

13)

14)
Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

Philippine Taxation Encyclopedia 2012

16

if they are covered by the tax audit II. Real Property 1) 2) 3) 4) Certified true copy/ies of the Transfer/Original/Condominium Certificate of Title/s of real property/ies (front and back pages); Certified true copy of the latest Tax Declaration at the time of death; "Certificate of No Improvement" issued by the Assessor's Office where properties have no declared improvement; Certification from the Municipal/City/Provincial Assessor's Office as to the declared real properties in the name of the decedent and/or his/her surviving spouse at the time of death;

III.

Personal Property 1 1) 2) 3) Certificate of Deposit/Investment/Indebtedness owned by the decedent and the surviving spouse, Certificate of registration of vehicles and other proofs showing the correct value of the same, Proof of valuation of shares of stocks at the time of death For listed stocks newspapers clippings/certification from the STOCK EXCHANGE For unlisted stocks latest Financial Statements of issuing corporation with computation of book value per share Xerox copy of certificate of stocks Proof of valuation of other types of personal property

4) 5) IV.

Allowable Deductions 2 1) Certification of the Barangay Chairman as to the domicile of the decedent at the time of his death, if FAMILY HOME is claimed as a deduction; Proof of CLAIMS AGAINST THE ESTATE, if applicable a) Certified true copy of the duly notarized promissory note or contract of loan signed by the decedent and the surviving spouse; b) In case of advances made by individuals or corporation to the decedent, copies of vouchers, cancelled checks, contract of loan or other documents evidencing the advances c) Collection or demand letter of the creditor
Philippine Taxation Encyclopedia 2012 17

2)

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

3)

4) 5) 6) 7) B.)

Authenticated copy of the latest Balance Sheet of the Corp. e) Certification Under Oath as to the balance of the decedent's account, signed by the President, Vice-President or other responsible official of the corporation, or the individual creditor f) Certified true copy of a mortgage contract g) Where settlement is made thru the Court, pertinent documents filed with the court evidencing "claims against the estate", or the court order approving the said claims, if already issued; h) Statement/accounting of disposition of the proceeds of the loan, for loans incurred within 3 years prior to the death of the decedent Proof of Other Claimed Deductions a) On property previously taxed or vanishing deductions a copy of the duly bank validated estate/donor's tax return and proof of payment of the tax on previous transmission/transfer b) On claims against insolvent person a copy of insolvency proceedings / SEC Certification on dissolved corporation (where the value of the decedent's interest is included as part of the gross estate) Proof of Claimed Tax Credit Proof of Claimed Losses Proof of Claimed Medical Expenses claimed Proof of Claimed "Transfer for Public Purpose", if applicable

d)

Reporting Requirements to be prepared and/or submitted by Revenue Officers 1) 2) 3) 4) Letter of Authority (LA)/Return Verification Order (RVO)/Audit Notice, whichever is applicable Duly validated Estate Tax Return Proof of payment of the tax STATEMENTS OF ASSETS AND DEDUCTION duly certified by an independent CPA, if the gross taxable estate exceeds P2,000,000 for deaths occurring on or after Jan. 1, 1998; or if the gross taxable estate exceeds P50,000 for deaths that occurred prior to Jan. 1, 1998 Form 0500 series/Form 1717 Series (Audit Reports) Narrative Memorandum Report, for cases covered by LA/Audit Notice Revenue Officer's Activity Report/Log Sheet
Philippine Taxation Encyclopedia 2012 18

5) 6) 7)
Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

8) 9) 10) 11) 12) 13) 14) 15) 16)

Table of Contents, for cases covered by LA/Audit Notice Duly prepared Letter of Confirmation issued by the reviewing office Docket Locator Form Certified photocopy of the zonal value of properties located outside of the investigating region Working papers reflecting items of gross estate and deductions duly signed by Tax Auditors/Revenue Officers Working papers showing computation of estate tax due duly signed by Tax Auditors/Revenue Officers Report of Ocular Inspection, if applicable Detailed Schedule of deductions, if applicable Reporting requirements for all the other internal revenue taxes, if they are covered by the tax audit
cdtai

Note: In case of non-availability of documents from RDO / RDC mentioned in B.2 - B.4, request photocopies thereof from taxpayer

1. 2.

if applicable Proofs of all the claimed deductions must be presented to the Revenue Officer during the original investigation and that only photocopies must be attached to the docket. ANNEX F

DONOR'S TAX

A.)

Requirements from Taxpayer I. General 1) 2) 3) Certification of the balance of mortgage assumed by the donee Sworn statement of the relationship of the donor to the donee Proof that the donee is a qualified relative of the donor, if the donation is being taxed using the schedular rates. (e.g. BIRTH CERTIFICATE) Proof of exemption for exempt donations, if applicable
Philippine Taxation Encyclopedia 2012 19

4)
Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

5) 6) 7) 8) II.

Proof of claimed tax credit, if applicable Proof of claimed deductions, if applicable Sworn statement that no other donations were made within the same calendar year, if applicable; Proof of payment of deficiency tax, if any

Real Property 1) 2) 3) Certified true copy/ies of the Original/Transfer/Condominium Certificate of Title ( front and back pages ) Certified true copy/ies of the latest Tax Declaration (front and back pages) "Certificate of No Improvement" issued by the Assessor's Office where the property/ies have no declared improvements

III.

Personal Property 1) Proof of valuation of shares of stock at the time of donation a) For listed stocks newspaper clippings/certification issued by the Stock Exchange as to the value per share b) For unlisted stocks latest audited Financial Statements of the issuing corporation with computation of the book value per share Certificate of Deposit/Investment/Indebtedness/Stocks for donated cash and securities Certificate of Registration of vehicle Proof of valuation of vehicle Proof of valuation of other types of personal properties

2) 3) 4) 5) IV.

Claimed Deductions 1) Proof of claimed deductions

B.)

Reporting Requirements to be prepared and/or submitted by the Revenue Officers 1) 2) 3) 4) 5) Letter of Authority/Audit Notice/Return Verification Order, whichever is applicable Duly validated Tax Return Proof of tax payment Duly notarized Deed of Donation Duly notarized Deed of Extra-judicial Settlement of the Estate with waiver of rights, if the waiver is subject to donor's tax
Philippine Taxation Encyclopedia 2012 20

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

6)

7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18)

Working papers showing the computation of gross donation and deductions claimed, details of previous donations made within the same calendar year and computation of deficiency tax due, if any, duly signed by Tax Auditors/Revenue Officers Form 1717 Series / Form 0500 Series (Audit Report) Table of Contents, for cases covered by LA/Audit Notice Docket Locator Form Agreement Form (for agreed assessment) Post Reporting Notice/Notice for an Informal Conference with a Summary of Findings (for non-agreed assessment) Report of Ocular Inspection, if applicable Narrative Memorandum Report, for cases covered by LA/Audit Notice Revenue Officer's Activity Report Duly prepared Letter of Confirmation issued by the reviewing office Certified photocopy of the zonal value of property/ies Checklist of audit procedures undertaken Detailed schedule of claimed deductions, if applicable

Note: In case of non-availability of documents from RDO / RDC mentioned in B.2 - B.5, request photocopies thereof from taxpayer

ANNEX G

WITHHOLDING TAX REMITTANCE RETURN (For transactions involving onerous transfer of Real Property classified as ordinary asset, whether Taxable or Exempt) CAPITAL GAIN'S TAX RETURN (For transactions involving onerous transfer of Real Property classified as capital asset, whether Taxable or Exempt) DOCUMENTARY STAMP TAX

A.)

Requirements from Taxpayer

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

Philippine Taxation Encyclopedia 2012

21

1) 2) 3) 4) 5) 6) 7) 8) 9)

10) 11) 12) 13) B.)

Proof of payment of the tax Deed of Absolute Sale/Document of Transfer Certified true copy of the Certificate of Title of the real property (front and back pages ) Certified true copy of the latest Tax Declaration (front and back pages) "Certificate of No-improvement" issued by the Assessor's Office, if the property has no declared improvement Special Power of Attorney, if applicable Seller's latest Certificate of Registration with HLURB or HUDCC and the latest LICENSE TO SELL, if applicable Seller's latest Certificate of Accreditation issued by the appropriate Real Estate Builders Association, if applicable Certificate of Exemption from Withholding Tax/Capital Gains Tax/Documentary Stamp Tax issued by the Commissioner of Internal Revenue or his representative to the taxpayer, if applicable Proof of Exempt Transfers, if applicable Proof of deficiency tax paid, if any Certificate of Non-productivity of ricefield and other agricultural lands issued by the Barangay Captain, if applicable Xerox copy of location plan, if applicable

Reporting Requirements to be prepared and/or submitted by the Revenue Officers 1) 2) 3) 4) 5) 6) 7) Duly filed Tax Return/Tax Declaration Return Verification Order (RVO) Form 1717 Series/Form 0500 Series (Audit Report) Report of Ocular Inspection, if applicable Revenue Officer's Activity Report/Log Sheet Working Papers showing computation of deficiency tax due duly signed by the Revenue Officer Docket Locator Form

Note: In case of non-availability of document from RDO / RDC mentioned in B.1, request photocopy thereof from taxpayer

ANNEX H
Copyright 2012 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia 2012 22

CAPITAL GAINS TAX RETURN/DOCUMENTARY STAMP TAX (For transactions involving onerous transfer of shares of stock not traded through the LOCAL STOCK EXCHANGE)

A)

Requirements from Taxpayer 1) 2) 3) 4) 5) 6) 7) Proof of payment of the tax Deed of Absolute Sale/Document of Transfer Proof of acquisition cost Xerox copy of stock certificates Proof of claimed selling expense Xerox copy of the latest Financial Statements of the issuing corporation with computation of the book value per share Proof of payment of deficiency tax, if any

B)

Reporting Requirements to be prepared and/or submitted by the Revenue Officers 1) 2) Duly filed tax return/tax declaration Working papers showing the composition of gross sales, acquisition cost/book value of shares, selling expenses, realized gain and computation of deficiency tax due, if any, duly signed by the Tax Auditor/Revenue Officer Form 1717 series/Form 0500 series ( Audit Report) Return Verification Order (RVO) Docket Locator Form Revenue Officer's Activity Report

3) 4) 5) 6)

Note: In case of non-availability of document from RDO / RDC mentioned in B.1, request photocopy thereof from taxpayer
cda

ANNEX I

WITHHOLDING TAX REMITTANCE RETURN (For transactions involving onerous transfer of motor vehicle
Copyright 2012 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia 2012 23

classified as ordinary asset) CAPITAL GAINS TAX RETURN (For transactions involving onerous transfer of motor vehicles classified as capital asset)

A)

Requirements from Taxpayer 1) 2) 3) 4) 5) Xerox copy of Certificate of Registration Proof of valuation of the motor vehicles Deed of Sale/Document of Transfer Proof of payment of the tax Proof of payment of deficiency tax, if any

B)

Reporting Requirements to be prepared and/or submitted by the Revenue Officers 1. 2. 3. 4. 5. 6. Duly validated Tax Returns Return Verification Order (RVO) Form 1717 series/Form 0500 series (Audit Report) Working paper showing computation of the tax due duly signed by the Tax Auditor/Revenue Officer Docket Locator Form Revenue Officer's Activity Report

Note: In case of non-availability of document from RDO / RDC mentioned in B.1, request photocopy thereof from taxpayer

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

Philippine Taxation Encyclopedia 2012

24

Endnotes 1 (Popup - Popup)


Annex A Annex B Annex B-1 Annex C Annex D Annex E Annex F Annex G Annex H Annex I

Copyright 2012

CD Technologies Asia, Inc. and Accesslaw, Inc.

Philippine Taxation Encyclopedia 2012

25