lca lines | volume iii, issue no. 8

8/12/2019 LCA LINES | Volume III, Issue No. 8

1/9

1

shall be retrieved and re-

placed with the new eLAform (BIR Form 1966). All

revenue officer ordered to

conduct investigation/audit

through manually issued LAs

prior to 1 July 2010 should

continue the conduct of audit/

investigation subject to the

retrieval of and replacement

of LAs.

REVENUE MEMORAN-

DUM ORDER 70-2010

Prescribes the guidelines and

procedures for the conversion

of Accounts Receivables/

Delinquent Accounts (ARs/

DAs) into the Accounts Re-

ceivables Conversion System

(ARCS).

All manually identified ARs/

DAs shall be converted into

the system, including the un-

paid 2nd installments of indi-

vidual taxpayers Income Tax

liabilities and dishonored

checks. ARs and DAs that

will be created beginning 1

REVENUE MEMORAN-

DUM ORDER 68-2010

Prescribes the guidelines and

procedures in the verification

and surrender of Documen-

tary Stamp Electronic Im-

printing Machines (DSEIMs)

and transfer of unused/

unloaded DocumentaryStamp Tax balance to the

Electronic Documentary

Stamp Tax (eDST) System.

All taxpayers/users of the

DSEIMs and the transfer of

the DST balances to the

eDST System to the Assis-

tant Commissioner on or

before 31 August 2010

otherwise any other unused

DST balances still loaded in

the DSEIM after the said

date shall be deemed forfeit-

ed in favor of the BIR.

Any taxpayers/users of com-

pany-owned DSEIMs who

opted to forego the verifica-

tion of the DSEIMs shall be

precluded from transferring any

unused DST balance(s) loadedin the said machines to the

eDST system.

REVENUE MEMORAN-

DUM ORDER 69-2010

Prescribes the guidelines on the

issuance of electronic Letters of

Authority (eLAs), Tax Verifica-

tion Notices (TVNs) and Mem-

oranda of Assignment (MOA).

Starting 16 August 2010, only

eLAs printed on BIR Form

1966 shall be issued by the BIR

for the audit/investigation of tax

liabilities, except Estate Tax

cases. TVNs shall be issued for

Estate Tax cases irrespective of

the amount of gross estate until

31 December 2010.

All Letters of Authority (LAs),

whether manual or electronic,

issued from 1 March 2010 cov-

ering cases for 2009 and other

taxable years, as well as LAs

issued by the Commissioner

pursuant to RMC No. 61-2010

I n s i d e t h i s

i s sue :

BIR Issuances 2

SEC Issuance 3

Legal Updates

4

Jurisprudence 6

JLs Corner 9

LCA LINESA U G U S T 2 0 1 0V o l u m e I I I I s s u e N o . 8

Serving your purpose, realizing your dreams...

BIR ISSUANCES
http://www.google.com.ph/imgres?imgurl=http://www.mindanao.com/images/bir_logo.gif&imgrefurl=http://picsicio.us/domain/mindanao.com/&usg=__Ke5IbMpMZ3NwNjTDPtfpUUwy7H8=&h=100&w=100&sz=8&hl=tl&start=19&zoom=1&um=1&itbs=1&tbnid=hJFNIyBymUFxgM:&tbnh=82&tbnw=


2/9

2

V o l u m e I I I I s s u e N o . 8 A U G U S T 2 0 1 0

August 2010 and are included in

the Monthly of Summary Taxes

Assessed (BIR Form No. 40.00),

Collectible and Disputed Assess-

ment shall be encoded in the

ARCS by the Assessment Divi-

sion, Large Taxpayers Service and

Enforcement Service, as the case

may be, before the dockets of these

cases are transmitted to the Collec-

tion Division or concerned Reve-

nue District Office (RDO)/Large

Taxpayers District Office (LTDO)/

Large Taxpayers Collection En-

forcement Division (LTCED), as

the case may be. For unpaid se

cond installments of individual

taxpayers income tax liabilities

and dishonored checks that will be

identified/created beginning 1 Au-

gust 2010, these delinquent ac-

counts shall also be encoded into

the ARCS by the RDOs immedi-

ately upon identification thereof.

REVENUE MEMORANDUM

ORDER NO. 72-2010

Prescribes the guidelines on the

processing of Tax Treaty Relief

Applications (TTRA) pursuant to

Philippine Tax Treaties.

The following documents are the

general documentary requirements

that shall be attached to all duly

accomplished TTRAs (3copies)

which must be signed by the appli-

cant who may either be the income

earner or the authorized repre-

sentative:

Proof of Residency;

Articles of Incorporation

(for income earner other

than an individual);

Special Power of Attorney;

Certification of Business

Presence in the Philip-

pines; and

Certificate of No Pending

Case.

Other documentary requirements

and procedures for the processing

of specific applications for relief

from double taxation under exist-

ing tax treaties (i.e. those pertain-

ing to business profits, shipping,

air transport, royalties, etc.) are

specified in the Revenue Memo-

randum Order No. 1-2000.

All tax treaty relief applications

relative to the implementation andinterpretation of the provisions of

Philippine tax treaties shall only be

submitted to and received by the

International Tax Affairs Division

(ITAD). If the forms or any other

necessary documents are submitted

to any other BIR Office, the appli-

cation shall be considered as im-

properly filed.

Filing should always be made BE-FORE the transaction. Transac-

tion, for purposes of filing the

TTRA, shall mean before the oc-

currence of the first taxable event.

Failure to properly file the TTRA

with ITAD within the prescribed

period shall have the effect of dis-

qualifying the TTRA under the

Order.

Taxpayer/applicant shall not beallowed to withdraw any TTRA/

documents already filed with IT-

AD. The same shall remain with

ITAD for custodianship and safe-

keeping.

REVENUE MEMORANDUM

ORDER 73-2001

Further amends certain provi-sions of Revenue Memorandum

Order No. 3-2009 relative to the

submission of reportorial require-

ments under the Oplan Kan-

dado Program.

REVENUE MEMORANDUM

CIRCULAR 68-2010

Prescribes the guidelines and pro-

cedures in granting the request of

Large Taxpayers (LTs) for exten-

sion in complying with the re-

quirements for the mandatory use

of Computerized Accounting

System (CAS) and/or compo-

nents thereof under Revenue

Regulation (RR) No. 9-

2009.

All LTs currently maintaining

books of accounts and accounting

records in manual form are re-

quired to register their CAS and/

or thei components thereof not

later than 31 December 2009.

However due to time and budget-


3/9

3

A U G U S T 2 0 1 0V o l u m e I I I I s s u e N o . 8

ary constraints, some LTs have

requested for a reasonable win-

dow to comply beyond the set

deadline.

The LTs covered by the set dead-

line include the following:

-Those using an excel program in

their recordkeeping or maintain-

ing their books of accounts and

other accounting records in man-

ual form;

-Those already using CAS and/or

components thereof, whether off-

the-shelf or customized system,

without securing the required

Permit to Use/Adopt CAS and/or

components thereof from the

Large Taxpayers Service (LTS);

and

-Those using CAS and/or compo-

nents thereof and were issued

permit to use such system prior totaxable year 2002, but are re-

quired to apply for revalidation

of existing permit on or before 31

December 2010.

Said LTs who failed to comply

within the prescribed deadline forthe registration of their CAS and/or

components thereof, shall submit a

letter addressed to the Assistant

Commissioner, LTS (ACIR-LTS),

Chief, Large Taxpayers Assistance

Division (LTAD) or Chief, Large

Taxpayers District Office (LTDO),

as the case may be, requesting for

an extension of time within which

to comply with the requirementsset forth under RR No. 9-2009.

REVENUE MEMORANDUM

CIRCULAR NO. 70-2010

Circularizes the revocation of BIR

Ruling Nos. DA-413-04 dated 30

July 2004 and DA-436-04 dated 12

August 2004 and clarifies the basis

in computing depreciation of prop-

erty, plant and equipment.

The Supreme Court, in its decision

in Basilan Estates, Inc. vs. CIR

(GR No. L-224992, 5 September

1967), held that depreciation of an

asset must be premised on its ac-

quisition cost, and not on its reap-

praised value.

The BIR reiterated said principle

in RAMO No. 1-00 (dated 7

March 2000), which states that:

No depreciation is allowable on

the appraisal increase of fixed as-

sets. Any foreseeable salvage val-ue is to be deducted from the cost

of the asset in determining the

basis of depreciation.

The concept of depreciation as a

mere recovery cost has not

changed from the Old Tax Code to

the present. Thus, there is no

compelling reason to deviate from

the sound principles laid down in

the aforecited Decision of the Su-preme Court.

MEMORANDUM CIRCU-

LAR NO. 6 SERIES OF 2010

To maintain and organized and

orderly filing of Financial State-

ments (FS), the Commission,

pursuant to its authority under

the Corporation Code and Secu-

rities Regulation Code the fol-

lowing measures in filing of the FS

of companies whose fiscal year

ends on 31 December 2010.

-All corporation including branch

offices, representative offices, re-

gional headquarters and regional

operating headquarters of foreign

corporations, that file their FS at

the Commissions head office

shall, depending on the last numer-

ical digit of their SEC registration

or license number, be governed by

the following schedule in filing

period for 2011:

April 14, 15, 18, 19, 201 and

2

SECURITIES and EXCHANGECOMMISSION ISSUANCE


4/9

4


-Corporations whose fiscal year

ends on a date other than 31 De-

cember 2010 shall comply withtheir original filing schedule.

-Prior to 18 April 2011, all corpo-

rations may file their FS regardless

of the last numerical digit of their

registration or license number.

LEGAL UPDATES

April 25, 26, 27, 28, 293 and

4

May 3, 4, 5, 65 and 6

May 9, 10, 11, 12, 137 and

8

May 16, 17, 18, 19, 209 and

0

RA 10086

STRENGTHENING

PEOPLES NATIONALISM

THROUGH

PHILIPPINE HISTORY

ACT

FEATURES:

RA 10086 changed the NationalHistorical Institute into theNational Historical Commissionof the Philippines (NHCP), anindependent agency attached to the

National Commission for Cultureand the Arts. TheNHCPwas de-clared to be the primary govern-

ment agency responsible for histo-ry and has the authority to deter-

mine all factual matters relating toofficial Philippine history.

To view full text, please go to:http://nhi.gov.ph/files/

RA10086.pdf

RA10088

ANTI-CAMCORDING ACT

OF 2010

FEATURES:

The Act declares and lists downunlawful acts committed when acopyright exists in a cinemato-

graphic film or other audiovisualwork or its soundtrack, without the

authorization of the copyrightowner or exclusive licensee.

The Act provides for presumptionson the subsistence of copyrightand/or ownership of copyright. Itshall not be a defense that thetransmission or the making of a

copy is for private or domestic pur-poses, or in connection with a fairuse deal.

All exhibition facilities, cinemas or

theatres are required to conspicu-ously post noticesorsignageswarning against the

bringing in of audiovisual record-ing devices into the screening/

exhibition area. The management/operator who fails to post these

required notices shall be fined.

To view full text, please go to:http://www.senate.gov.ph/republic_acts/ra%2010088.pdf

RA 10089

PHILIPPINE RUBBER RE-

SEARCH INSTITUTE ACT

OF 2010

FEATURES:

The Act created the Philippine

Rubber Research Institute (PRRI)from the main institute for rubberat the Mindanao Statue University,and placed under the control andsupervision of the Department of

Agriculture (DA). ThePRRIs


5/9

5


mandate is to initiate and adminis-

ter research and development pro-

grams to improve the quality andincrease the productivity of rubber,especially for the benefit of small-holder rubber producers and pro-

cessors.


RA 10054

MOTORCYCLE HELMET

ACT OF 2009

FEATURES:

Mandates that all motorcycle rid-ers, both drivers and back riders,

but except tricycle drivers, shallwear standard protective motorcy-

cle helmets, regardless of thelength of the drive and the type ofthe road. Failure to wear the re-

quired helmet shall be punishedwith a fine.

Sellers and dealers of motorcyclesare also mandated to make availa-

ble for purchase a standard motor-cycle helmet for each motorcycle

unit.

Finally, a person who uses, sells,and distributes substandard motor-cycle helmets, or those which donot bear the required PhilippineStandard (PS) mark or ImportCommodity Clearance (ICC) cer-

tificate, shall likewise be penal-ized. These fines shall be without

prejudice to the penalties imposedunder the Consumer Act of the

Philippines (RA 7394).


RA 10055

PHILIPPINE TECHNO-LO-

GY TRANSFER ACT OF

2009

FEATURES:

Provides for the framework and

support system for the ownership,

management, use and commercial-

ization of intellectual property gen-

erated from government funded

researches.

To view full text, please go to:

http://www.senate.gov.ph/

republic_acts/ra%2010055.pdf

EXECUTIVE ORDER

NO. 885

MODIFYING THE NOMEN-

CLATURE AND THE

RATES OF DUTY ON IM-

PORTED EDUCATIONAL,

TECHNICAL, SCIENTIFIC

AND HISTORICAL OR

CULTURAL BOOKS UN-

DER SECTION 104 OF THE

TARIFF AND CUSTOMS

CODE OF 1978

(PRESIDENTIAL DECREENO. 1464), AS AMENDED

FEATURES:

The Philippines, as signatory to the

United Nations Educations, Scien-tific and Cultural Organization

Florence Agreement undertakes"not to apply customs duties or

other charges on, or in connectionwith, the importation of (a) books,

publications and documents; (b)educational, scientific and culturalmaterials, which are the products

of another Contracting State, sub-ject to conditions.To view full text, please go to:

http://www.tariffcommission.gov.ph/

eo_885.htm
http://www.google.com.ph/imgres?imgurl=http://elizabethwong.files.wordpress.com/2007/02/2007-science-year-5-text-book.jpg&imgrefurl=http://elizabethwong.wordpress.com/2007/02/25/darwin-banned/&usg=__Xvm0sz_bh8_4b_KyIfCldkwx3SU=&h=759&w=560&sz=94&hl=tl&sthttp://www.google.com.ph/imgres?imgurl=http://images01.olx.com.ph/ui/2/75/72/34767372_6.jpg&imgrefurl=http://quezoncity.olx.com.ph/school-books-for-sale-chemistry-parasitology-trigonometry-organic-chemistry-biochem-iid-34767372&usg=__Z4DBJ_eJtO7qOuu2BLCThttp://www.google.com.ph/imgres?imgurl=http://www.filipinobooks.com/book_historyof%2520thefil.people.jpg&imgrefurl=http://about-ruth.com/2006/07/24/history-of-the-filipino-people/&usg=__0KfrSrCpH5xX__BI0tTATR0PWlQ=&h=852&w=572&sz=93&hl=tl&start=1&zoom=1&


6/9

6


CITY MAYOR, CITY TREAS-

URER, CITY ASSESSOR, ALL

OF QUEZON CITY, and ALVIE-

MERSON S. YU

vs.

RIZAL COMMERCIALBANKING CORPORATION

G.R. No. 171033

August 3, 2010

FACTS: Spouses Roberto andMonette Naval (spouses Naval) ob-

tained a loan from RCBC. The realestate mortgage was later foreclosedand the properties were sold at pub-

lic auction with RCBC as the high-est bidder. Certificates of Sale were

issued.

An auction sale of tax delinquentproperties was conducted by theCity Treasurer of Quezon City. Al-vin Emerson S. Yu (Yu) was thehighest bidder. Upon payment of

the tax delinquencies, he was issuedthe Certificate of Sale of Delinquent

Property.

Spouses Naval contended, that it

had until one (1) year from the dateof registration of the certificate of

sale to redeem the property.

ISSUE: Whether or not spouses

Naval has a right to redemption.

RULING: Spouses Naval has a

right to redemption.

The owner of the delinquent realproperty or person having legalinterest therein, or his representa-

tive, has the right to redeem theproperty within one (1) year fromthe date of sale upon payment ofthe delinquent tax and other fees.Verily, the period of redemption of

tax delinquent properties should becounted notfrom the date of regis-

tration of the certificate of sale, aspreviously provided by Section 78of P.D. No. 464 (The Real Proper-

ty Tax Code), but rather on thedate of sale of the tax delinquent

property, as explicitly provided bySection 261 of R.A. No. 7160 (The

Local Government Code of 1991).

CARLOS DE CASTRO

vs.

LIBERTY BROADCASTING

NETWORK INC. andEDGARDO QUIOGE

G.R. No. 165153

August 25,2010

FACTS: Carlos C. de Castro (deCastro) filed a complaint againstits employer Liberty Broadcasting

Network Inc. (LBNI) for illegaldismissal with NLRC praying forreinstatement, payment of back

wages, damages, and attorneysfees. He maintained that he couldnot have solicited commissions

from suppliers considering that he

was new in the company.

The Labor Arbiter (LA) rendereda decision in de Castros favor,

holding LBNI liable for illegaldismissal.

The National Labor Relations

Commission (NLRC) ruled infavor of de Castro.

ISSUE: Whether or not LBNI isliable for illegal dismissal.

RULING: LBNI is liable forillegal dismissal.

The Court found de Castros dis-

missal was based on unsubstanti-ated charges. De Castro had notstayed in the company and hadnot even passed the probationary

period and when the acts charged

allegedly took place. This is con-trary to common practice sincenew employees will have a posi-

tive motivation to make a goodimpression in order to be regular-ized.

The Court ruled that the grounds

that LBNI invoked for de Castrosdismissal were doubtful. Thesedoubts should be interpreted in

JURISPRUDENCE


7/9

7


De Castros favor pursuant to Arti-

cle 4 of Labor Code. Between a

laborer and his employer, doubtsreasonably arising from the evi-dence or interpretation of agree-ments and writing should be re-

solved in the formers favor.

MICHAEL B. BELENvs.

JUDGE MEDEL ARNALDO B.

BELEN, Regional Trial Court,

Calamba City, Branch 36A.M. No. RTJ-08-2139,

August 9,2010

FACTS: Michael B. Belen(Michael) filed a complaint withthe Office of the Court Admin-istrator (OCA) of the SupremeCourt, charging Judge MedelArnaldo B. Belen (Judge Medel)with grave abuse of authorityand conduct unbecoming a

judge. According to Michael,Judge Medel filed a case forEstafa against Michaels father,Nezer D. Belen (Nezer), but thesame was dismissed for lack ofprobable cause.

Thereafter, Judge Medel alleg-

edly started harassing andthreatening Nezer with the fil-

ing of several cases against thelatter.

ISSUE: Whether or not JudgeMedel is guilty of grave abuseof discretion.

RULING: Judge Medel isguilty of grave abuse of discre-tion.

In this case where Judge Medelcommitted the acts of threatand harassments against Mi-chael and Nezer, the formerviolated the rule that judgesshall not allow family, social orother relationships to influence

judicial conduct or judgment.That propriety and appearanceof propriety are essential to the

performance of the judge.

PEOPLE OF THE

PHILIPPINES

vs.

ESTELA TUANy BALUDDA

G.R. No. 176066

August 11, 2010

FACTS: Two separate Infor-

mations were filed before the RTC

against Estela Tuan y Baludda

(Baludda) for illegal possession of

marijuanaand illegal possession of

firearm.

The Regional Trial Court (RTC)

found Baludda guilty as charged.

The Court of Appeals affirmed the

decision of the RTC with regard to

the illegal possession of marijuana

and acquitted the accused with re-

gard to the charge of illegal pos-

session of firearm since the records

were bereft of evidence that the

gun supposedly confiscated from

Baludda was unlicensed.

ISSUE: Whether or not there was

a showing of procedural defect or

lapses in the issuance of the search

warrant.

RULING: There was no showing

of procedural defect or lapses in

the issuance of the search warrant.

The validity of the issuance of a

search warrant rests upon the fol-

lowing factors: (1) it must be is-

sued upon probable cause; (2) the

probable cause must be determined

by the judge himself and not by the

applicant or any other person; (3)

in the determination of probable

cause, the judge must examine,

under oath or affirmation, the com-

plainant and such witnesses as the

latter may produce; and (4) the

warrant issued must particularly

describe the place to be searched

and persons or things to be seized.
http://www.google.com.ph/imgres?imgurl=http://clubs.asua.arizona.edu/~africa/websiteFiles/judge.jpg&imgrefurl=http://clubs.asua.arizona.edu/~africa/exec.htm&usg=__o2QTUFq0VuCXfVIlj2k2Rlw3X3I=&h=300&w=300&sz=17&hl=tl&start=39&zoom=1&itbs=1&tbnid=nCQBx_H01


8/9

8


A description of the place to be

searched is sufficient if the officer

serving the warrant can, with rea-sonable effort, ascertain and identi-

fy the place intended and distin-

guish it from other places in the

community. In the case at bar, the

address and description of the

place to be searched in the Search

Warrant was specific enough.

VICTORINA (VICTORIA)

ALICE LIM LAZARO

vs.

BREWMASTER INTERNA-

TIONAL, INC.

G.R. No. 182779

August 23, 2010

FACTS: Brewmaster Internation-

al, Inc., (Brewmaster) is a market-

ing company engaged in selling

and distributing beer and other

products of Asia Brewery, Inc.

Brewmaster filed a Complaint forSum of Money against Prescillo G.

Lazaro (Prescillo) and Victorina

(also known as Victoria) Alice

Lazaro alleging that Prescillo and

Victoria obtained on credit from

Brewmaster beer and other prod-

ucts and despite repeated demands,

they have failed and refused to pay

their aforesaid obligation.

The Metropolitan Trial Court

(MeTC) dismissed the complaint

ratiocinating that Brewmaster

failed to meet the burden of proof

required to establish its claim by

preponderance of evidence.

The Regional Trial Court (RTC)

found no reversible error in the

assailed decision.

The Court of Appeals (CA) ruled

in favor of Brewmaster.

ISSUE: Whether or not the Com-

plaint failed to state a cause of ac-

tion.

RULING: The Complaint did not

fail to state a cause of action.

The basic requirement under the

rules of procedure is that a com-

plaint must make a plain, concise,

and direct statement of the ultimate

facts on which the plaintiff relies

for his claim.

To determine whether the com-

plaint states a cause of action, all

documents attached thereto may, infact, be considered, particularly

when referred to in the complaint.

if the complaint does not state a

cause of action, then no relief can

be granted to the plaintiff and it

would necessarily follow that the

allegations in the complaint would

not warrant a judgment favorable

to the plaintiff.

In the case at bar, the Complaint

sufficiently states a cause of ac-

tion. The following allegations in

the complaint adequately make up

a cause of action for collection of

sum of money against Victoria: (1)

that Victoria and her husband ob-

tained beer and other products on

credit from Brewmaster; and (2)

that they refused to pay despite

demand.

Although it is true that sales in-

voices are not actionable docu-

ments, they were not the bases of

Brewmasters action for sum of

money but were attached to the

Complaint only to provide details

on the alleged transactions.
http://www.google.com.ph/imgres?imgurl=http://img4.allvoices.com/thumbs/event/609/480/58025687-malaysian-caught.jpg&imgrefurl=http://www.allvoices.com/contributed-news/6141644-malaysian-man-caught-with-10-kls-of-shabu-in-naia&usg=__gso4-0lq8oQRM7oAKjhguAhttp://www.google.com.ph/imgres?imgurl=http://img109.imageshack.us/img109/6126/met1hires.jpg&imgrefurl=http://www.philstar.com/Article.aspx%3Farticleid%3D548453&usg=__yxnaBXLDxaKEn8ZQaewyLxCU850=&h=415&w=600&sz=43&hl=tl&start=71&zoom=1&itbs=1&tbnid=KwTeo


9/9

9


At the start of a trial, a lawyer called his first witness to the stand. She seemed like a sweet,elderly woman. He approached her and asked, "Mrs. Santos, do you know me?"

She responded, "Why, yes, I do know you attorney. I've known you since you were a youngboy. You've become a huge disappointment to me. You lie, you cheat on your wife, you ma-nipulate people and talk about them behind their backs. You think you are a hot shot law-

yer, when you havent got the brains to realize you never will amount to anything more thana two-bit paper pusher. Yes, I know you."

The lawyer was stunned. Not knowing what else to do he pointed across the room andasked, "Mrs. Santos, do you know the defense attorney?"

She replied, "Why, of course I do. I've known him since he was a youngster, too. I used tobaby-sit him for his parents. And he, also, is a real disappointment. He's lazy, bigoted, neverhas a nice word to say about anybody, and he drinks like a fish. He's had indecent relation-ships with so many women, and everybody knows that he charges so much legal fees to hisclients. Yes, I know him."

The judge rapped his gavel, to quiet the tittering among the spectators in the courtroom.Once the room was silent, he called both attorneys to his bench. In a quiet, menacing voice,he warned, "If either of you asks her if she knows me, you'll be jailed for contempt!"

JLs CornerVolume III Issue No. 8

August 2010

L A G U N D I C A R O N A N A N D A S S O C I A T E S

DOYOUKNOWME?

lca lines | volume iii, issue no. 8

Documents