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: info@paguiodumayasassoc.com

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