DEC.
2016 Q U A L I T Y A S S U R A N C E B U L L E T I N
SECURITIES AND EXCHANGE COMMISSION (SEC) BUREAU OF INTERNAL REVENUE (BIR)
Memorandum Circulars
MC 8-2017. Signatories and Penalty for Non/Late
Submission of the Manual on Corporate Governance
Revenue Memorandum Orders
RMO No. 12-2017. Guidelines and Procedure to
Streamline the Process and Issuance of Certificate of
Tax Exemption (CTE) and Electronic Certificate Au-
thorizing Registration (eCAR) for Transfer of Raw
Lands to Community /Homeowners Associations for
Republic Act (RA) No. 7279, Otherwise Known as the
“Urban Development and Housing Act of 1992”
Revenue Memorandum Circulars
RMC No. 36-2017. Authorizing the Use of BIR Form
Nos. 2342, 2343, 0427, and 048 Pursuant to Revenue
Memorandum Order (RMO) No. 3-2017
MAY
2017
Announcement
Free Public Orientation and Seminar on Company
Registration System
Notices
SEC New Call Center Hotlines
Financial Reporting Bulletin (FRB) No. 6, as Revised,
dated January 2013.
Issue 2017-5 Page 2
Revenue Memorandum Order No. 12-2017 issued on
May 16, 2017 prescribes the guidelines and procedures to
streamline the process and issuance of Certificate of Tax
Exemption (CTE) and Electronic Certificate Authorizing
Registration (eCAR) for transfer of raw lands to community/
homeowners associations for socialized housing projects
pursuant to Republic Act (RA) No. 7279, Otherwise Known as
the “Urban Development and Housing Act of 1992”
The application for the issuance of CTE shall be filed
directly with the Office of the Commissioner. No application
shall be processed unless the following documentary
requirements are fully complied with by the requesting party:
a. Original Certification signed by the President of the Social
Housing Finance Corporation that the subject property
qualifies and is actually a Community Mortgage Program
(CMP) Project. Such Certification shall be sufficient
guarantee of the validity, authenticity and due diligence
in the review of CMP Project loan application of the
Homeowners Association;
b. Certified true copy of the Deed of Sale executed by the
landowner in favor of the Community/Homeowners
Association;
c. Certified true copy of the Master List of Beneficiaries;
d. Certified true copy of the Transfer Certificate of Title/
Original Certificate of Title and the latest Tax Declaration
of the Property; and
Guidelines and Procedures to Streamline the Process
and Issuance of Certificate of Tax Exemption (CTE) and
Electronic Certificate Authorizing Registration (eCAR)
for Transfer of Raw Lands to Community/Homeowners
Associations for Republic Act (RA) No. 7279, Otherwise
Known as the “Urban Development and Housing Act of
1992”
d. Extrajudicial Settlement of Estate, in case the title of
the property is still in the name of a deceased
landowner and evidence of payment of appropriate
taxes.
The Revenue District Officer (RDO) concerned shall
process, approve and issue the necessary eCAR within five
(5) working days from the date of submission of the CTE.
The CTE shall be a sufficient basis for the RDO concerned to
issue the eCAR and no other documents shall be required
from the taxpayer/landowner requesting for eCAR.
The eCAR shall particularly state that the raw land
is intended for a CMP pursuant to RA No. 7279, with a lien
on the title of the land annotated by the Registry of Deeds
having jurisdiction over the properties , to the effect that
the same is to be applied or is being applied to socialized
housing projects pursuant to RA No. 7279.
The BIR may, at any time, conduct a post audit
evaluation and verification on whether or not the raw land
is actually covered under the CMP.
Issue 2017-5 Page 3
Authorizing the Use of BIR Form Nos. 2342, 2343, 0427, and 048 Pursuant to Revenue Memorandum Order
(RMO) No. 3-2017
This Circular is issued to prescribe BIR Accountable Forms relative to the implementation of Revenue Memorandum Order
(RMO) No. 3-2017 (Amending Further the Prescribed Format for the Certificate of Availment/Approval an Notice of Denial
Relative to the Application for Compromise Settlement and/or Abatement of Penalties pursuant to Section 204 of the Tax
Code , as Amended), to with:
BIR Accountable Form No. Form Name
2342 Certificate of Availment—Compromise Settlement
2343 Certificate of Availment—Abatement of Penalties
0427 Notice of Denial—Application for Compromise Settlement
0428 Notice of Denial—Application for Abatement of Penalties
The said BIR Accountable Forms shall be accomplished in three (3) copies and shall be distributed as follows: original—
for taxpayer’s copy; duplicate—for the issuing office; and triplicate—to be attached to the docket of the case.
Printing of the BIR Accountable Forms mentioned above shall be the responsibility of the Accountable Forms Division.
The authorized requisitioning officer shall be the following:
BIR Accountable Form No. Form Name
2342 Office of the Assistant Commissioner—Collection Service
Office of the Assistant Commissioner— Large Taxpayers Service
2343 Office of the Assistant Commissioner—Collection Service
Office of the Assistant Commissioner— Large Taxpayers Service
Office of the Regional Director
0427
0428
Issue 2017-5 Page 4
Signatories and Penalty for Non/Late Submission of the
Manual on Corporate Governance
SEC Memorandum Circular No. 19, Series of 2016
directed all publicly –listed companies (PLCs) to submit a new
Manual on Corporate Governance (MCG), pursuant to the new
Code of Corporate Governance for PLCs, on or before May 31,
2017.
The Commission, in its en banc meeting on April 20,
2017 resolved the signatories to the MCG should be the com-
pany’s Chairman of the Board and Compliance Officer.
Further, it resolved to impose the following penalty
for the non/late submission of the MCG:
The monthly penalty will accrue until the new MCG is
submitted to the Commission.
BASIC PENALTY Php20,000.00
MONTHLY PENALTY Php2,000.00
Free Public Orientation and Seminar on Company
Registration System
Free Public Orientation and Seminar on Company
Registration System every Friday Starting June 2, 2017 at
10:00 A.M and 1:00 P.M at the Function Room B, 2nd Floor
Secretariat Building, PICC Complex Roxas Boulevard, Pasay
City.
SEC New Call Center Hotlines
In furtherance of the Securities and Exchange
Commission’s commitment to facilitate assistance to the
public, the Commission has opened-up several hotlines
through which the general public may direct any SEC-
related concerns.
As an alternative to physically going to SEC offices,
the public may now conveniently direct their queries and
concerns to the following call center hotlines, Monday to
Friday from 8:00 A.M to 5:00 P.M
Company Registration and
Monitoring Department
CRMD 818-5554
Human Resource and
Administration Department
HRAD 818-1119
818-7215
Enforcement and Investor
Protection Department
EIPD 818-5704
Markets and Securities
Regulation Department
MSRD 818-2016
Corporate Governance and
Finance Department
CGFD 818-9227
Issue 2016-1 Page 6
Issue 2017-5 Page 5
The Commission en Banc in its meeting on May 11, 2017, resolved to Amend Financial Reporting Bulletin (FRB) No.
6, as Revised, dated January 2013.
Bulletin No. Date Subject Matter Clarification/Details
006, (As revised) May 11, 2017
(The original FRB
No. 6 was dated
16 February 2012
and the same was
amended on 24
January 2013)
Deposit for Future
Subscription
RFB No. 6 date 24 January provides that:
“...an entity shall classify a contract to deliver its own
equity instruments under equity as a separate account
(e.g., Deposit for Future Stock Subscription) from
“Outstanding Capital Stock” if and only if, all of the
following elements are present as of the end of the
reporting period:
1. The unissued authorized capital of the entity is
sufficient to cover the amount of shares indicated in the
contract;
2. There is Board of Directors’ approval on the
proposed increase in authorized capital stock (for which a
deposit was received by the corporation);
3. There is stockholders’ approval of said proposed
increase; and
4. The application for the approval of the proposed
increase has been filed with the Commission.“ (emphasis
supplied)
The Commission has received various request from
companies and auditing firms to visit the existing FRB No.
6, particularly the elements for recognizing DFFS as an eq-
uity instrument. It is believed that with the recent adoption
of “one day processing” policy of applications to increase
authorized capital stock (ACS), there is a need to update
the guidelines to adhere with the changes in the policies
and procedures of the Commission.
Financial Reporting Bulletin (FRB) No. 6, as Revised, dated January 2013.
Issue 2016-1 Page 6
Issue 2017-5 Page 6
Bulletin No. Date Subject Matter Clarification/Details
In view of the foregoing, the Commission in its
meeting held on May 11, 2017 approved the amendment
of the above-cited provision of the FRB and be revised as
follows:
“...an entity shall classify a contract to deliver its own
equity instruments under equity as a separate account
(e.g., Deposit for Future Stock Subscription) from
“Outstanding Capital Stock” if and only if, all of the
following elements are present as of the end of the
reporting period:
1. The unissued authorized capital of the entity is
sufficient to cover the amount of shares indicated in the
contract;
2. There is Board of Directors’ approval on the
proposed increase in authorized capital stock (for which a
deposit was received by the corporation);
3. There is stockholders’ approval of said proposed
increase; and
4. The application for the approval of the proposed
increase has been presented for filing or filed with the
Commission. “ (emphasis supplied)
To deter abuse of the Rule, it is expected that the
approval of the application to increase ACS be obtained
within one (1) year from the date the said application was
presented to the Commission through its Company
Registration and Monitoring Department.
Unit 3207 Cityland Pasong Tamo Building,
Pasong Tamo St., Barangay Pio del Pilar,
Makati City
Phone: +63 2 950-9854
Fax: +63 2 950-9854
E-mail: [email protected]
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
Editorial Board
Floyd C. Paguio
Managing Partner
This bulletin is a compilation of relevant issuances, rulings and memoranda from various government agencies to en-
hance 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.
Ken John B. Asadon
Senior Tax Specialist
Aileen P. Melchor
Tax Specialist