Member Article

SyCipLaw's Tax Department has prepared Tax Issues and Practical Solutions (T.I.P.S.) for July which covers the following tax issues:

1. Is a taxpayer always required to make the "payment under protest" under Section 252 of the Local Government Code of 1991, as amended, to assail real property taxes?

2. May services rendered to foreign entities outsourcing manpower recruitment in the Philippines qualify for a zero percent rate of value-added tax ("VAT")?

3. In a merger, is a surviving corporation entitled to claim the unutilized input value added tax of the absorbed corporation even if there is an ongoing tax investigation involving the absorbed corporation, and pending the issuance of a tax clearance?

4. To sustain a conviction for willful failure to pay taxes, is the prosecution required to prove, beyond reasonable doubt, that the accused was required to pay the subject taxes?

5. Are there differences in the accounting and tax treatment of income and expenses relating to retirement benefits?

6. What are the requirements for an employee retirement plan to qualify for tax exemption and for contributions to it to be tax deductible expenses?

7. In a multi-employer Tax Qualified Plan, is the employee required to serve the whole 10-year employment requirement with the same employer in order for the employee's retirement benefits to be exempt from tax?

8. Is the repeal of Section 34(K) of the Tax Code under the amendments introduced by the Ease of Paying Taxes ("EOPT") Act applicable to all assessed cases and on-going audits covering taxable periods prior to the effectivity of the EOPT Act?

Please read the full texthereor via thislink.