Bureau of Internal Revenue
Republic of the Philippines

LEGAL MATTERS

Through the continuing implementation of the programs on Legal Enforcement, which aims to enhance the administration of internal revenue laws by putting emphasis on the preparation of decisions and rulings, as well as the filing of civil and criminal cases with pertinent courts and offices, the following activities were undertaken:

1. Filed with the Department of Justice, Regional Trial Courts, Metropolitan Trial Courts, Sandiganbayan, Supreme Court and Court of Appeals 114 criminal cases involving the amount of P 74.893 billion.
2. Acted upon 305 claims for tax credit/refund as follows:

162 claims for tax refund were recommended for approval involving the amount of P 458.860 million.

107 claims for tax credit were recommended for approval involving the amount of P 978.062 million.

36 claims for tax credit/refund were disallowed involving the amount of P 43.406 million.

3. Acted on 135 protested assessments as follows:

34 assessments were recommended for revision/modification involving the amount of P 563.078 million.

49 assessments were recommended for cancellation/withdrawal involving the amount of P 5.708 billion.

52 assessments were reiterated involving the amount of P 817.653 million.

4. Issued 474 numbered BIR rulings and 1,340 Delegated Authority rulings.

5. Acted on 462 requests for tax exemption and 215 tax treaty relief applications.

6. Handled 234 civil cases involving the amount of P 3.537 billion in the Department of Justice, Court of Tax Appeals, Court of Appeals and Supreme Court.

7. Rendered decisions on 29 tax cases in favor of the government involving the amount of P 441.421 million.

8. Answered 8 contested assessments in the Court of Tax Appeals involving the amount of P 133.778 million and 29 claims for refund involving the amount of P 397.909 million.

9. Filed with the Regional Trial Courts 11 complaints for collection of taxes involving the amount of P 17.497 million.

Furthermore, the following Revenue Regulations were approved by the Secretary of Finance: 1. Revenue Regulations No. 1-99 - Implementing the Tax Incentives Provided Under Section 3(b) and (d) of RA No. 8502, Otherwise Known as the "Jewelry Industry Development Act of 1998."

2. Revenue Regulations No. 2-99 - Establishing the Policy and Procedures Governing the Availment of Immunity from Audit and Investigation of Income Tax, VAT and Percentage Tax Returns under the ERAP Program Filed by Certain Taxpayers for the Taxable Year 1998.

3. Revenue Regulations No. 3-99 - Further Amending Section 2 of RR No. 12-98 Streamlining and Making More Efficient the Collection of the Creditable Withholding Tax on Income Payments to Medical Practitioners.

4. Revenue Regulations No. 4-99 - Amending RMO 29-86, as amended by RMO Nos. 16-88, 27-89 and 6-92 relative to the Payment of Capital Gains Tax and Documentary Stamp Tax on Extrajudicial Foreclosure Sale of Capital Assets Initiated by Banks, Finance and Insurance Companies.

5. Revenue Regulations No. 5-99 - Implementing Section 34(E) of the Tax Code of 1997 on the Requirements for Deductibility of Bad Debts from Gross Income.

6. Revenue Regulations No. 6-99 - Extending the Deadline for Availment of the Economic Recovery Assistance Payment (ERAP) Program under RR No. 2-99 until July 15,1999.

7. Revenue Regulations No. 7-99 - Amending RR No. 7-95 Requiring Computerized VAT Taxpayers to submit Summary Lists of Sales and Purchases in Magnetic Form using 3.5 inch Floppy Diskettes.

8. Revenue Regulations No. 8-99 - Providing Penalties for Violation of the Requirement that Output Tax should not be separately indicated in the Sales Invoice or Official Receipt.

9. Revenue Regulations No. 9-99 - Amending RMO No. 30-99 dated March 17,1999 prescribing the Filing of Returns by Non-Resident Citizens, Overseas Contract Workers and Seamen covering all Income earned by Non-resident Citizens from Abroad beginning January 1, 1998.

10. Revenue Regulations No. 10-99 - Prescribing the Rules on the Use of Cash Register and Point-of-Sale Machines in lieu of Registered Sales Invoices or Receipts.

11. Revenue Regulations No. 11-99 - Prescribing the Issuance of Taxpayer Identification Number (TIN) to All Taxpayers and Qualified Applicants and the Mandatory Incorporation of TIN in Government Forms, Papers and Documents.

12. Revenue Regulations No. 12-99 - Implementing the Provisions of the NIRC of 1997 Governing the Rules on Assessment of National Internal Revenue Taxes, Civil Penalties and Interest and the Extra-judicial Settlement of a Taxpayer's Criminal Violation of the Code through Payment of a Suggested Compromise Penalty.

13. Revenue Regulations No. 13-99 - Prescribing the Regulations relative to the Exemption of Certain Individuals from the Capital Gains Tax on the Sale, Exchange or Disposition of a Principal Residence under Certain Conditions.

14. Revenue Regulations No. 14-99 - Amending Section 2 of RR No. 14-97, Otherwise Known as Revenue Regulations Governing the Imposition of Excise Taxes on Automobiles and Other Motor Vehicles.

15. Revenue Regulations No. 15-99 - Creating the Revenue Regional Accreditation Board (RRAB) in each Revenue Region and the Revenue National Accreditation Board (RNAB) in the National Office, Defining their Function and Composition, and Providing for the Rules for their Accreditations, Conduct, and Suspensions on Tax Practitioners before the BIR.

16. Revenue Regulations No. 16-99 - Amending RR No. 1-95, as amended relative to the Tax Incentives Granted to Enterprises registered in the Subic Special Economic and Freeport Zone.

17. Revenue Regulations No. 17-99 - Implementing Sections 141, 142, 143 and 145(A) and (C), (1), (2), (3) and (4) of the NIRC of 1997 relative to the increase of the Excise Tax on Distilled Spirits, Wines, Fermented Liquors and Cigars and Cigarettes packed by Machine by Twelve Percent (12%) on January 01, 2000.

18. Revenue Regulations No. 18-99 - Implementing Section 5 of Republic Act No. 8424, Otherwise Known as the Tax Reform Act of 1997, relative to the Imposition of VAT on Banks, Non-bank Financial Intermediaries and Finance Companies.

19. Revenue Regulations No. 19-99 - Implementing Section 5 of RA No. 8424, Otherwise Known as the Tax Reform Act of 1997 relative to the Imposition of Value-Added Tax on Sale of Services by Persons Engaged in the Practice of Profession or Calling and Professional Services Rendered by General Professional Partnerships; Services rendered by Actors, Actresses, Talents, Singers, and Emcees; Radio and Television Broadcasters and Choreographers; Musical, Radio, Movie, Television and Stage Directors; and Professional Athletes.