QuestionsQuestions (BIR REVENUE REGULATIONS NO. 15-99)
The policy is that tax practice before the BIR is a specialized profession that was previously unregulated for BIR purposes; thus, under Section 6(G) of the Tax Code of 1997, the Commissioner must accredit and register tax practitioners based on professional competence, integrity, and moral fitness.
To give official recognition to competent and professional tax practitioners who adhere to acceptable morality and good conduct, and to provide an administrative mechanism to withdraw recognition from grossly incompetent or grossly misconduct practitioners to the detriment of clients and/or the government.
Two boards are created: the Revenue National Accreditation Board (RNAB) in the National Office, and the Revenue Regional Accreditation Board (RRAB) in each Revenue Region.
RNAB is composed of: (1) a Chairman—one of the four Deputy Commissioners assigned by the Commissioner; (2) a Member from the private sector chosen from nominees by PCCI, PICPA, or TMAP; and (3) three senior internal revenue officials in the National Office with rank of Assistant Commissioner designated by the Commissioner.
Each RRAB is composed of: (1) a Chairman—Regional Director; (2) one private sector representative chosen by the Commissioner from nominees submitted by the local PICPA chapter; and (3) three senior internal revenue officials in the Regional Office with rank of Assistant Division Chief or higher designated by the Commissioner.
They serve a maximum term of three (3) years from nomination date. The Commissioner may reconstitute them via a Revenue Special Order, but no chairman or member may serve for more than three consecutive years. Vacancies are filled by qualified senior officers assigned by the Commissioner.
Any action or decision of the RRAB becomes final only upon affirmation by the RNAB and/or by the Commissioner.
Tax agents or tax practitioners engaged in regular preparation/certification/audit and filing of tax returns and related papers, or who regularly appear before BIR offices on behalf of taxpayers for a consideration; this includes individuals, partners of general professional partnerships, and officers/authorized representatives of incorporated entities engaged in accounting, auditing, or tax consultancy.
Covered acts include official dealings requiring discussions/explanations on behalf of a taxpayer. Excluded are mere physical filing or following up status of documents/rulings/decisions or papers pending with any BIR office.
Exceptions include: (1) individual taxpayers acting on their own behalf with satisfactory identification; (2) members of the Philippine Bar not suspended/disbarred (may opt to apply); and (3) individuals with satisfactory proof of identification/authority in limited/special appearances such as representing immediate family, a regular full-time employee representing an employer, bona fide officers/employees representing their employer, trustees/receivers/guardians/administrators/executors representing estates/trusts/receiverships, and officers/employees of government units representing them in official duties.
He must be (1) a CPA with current PRC license; or if not CPA, have specific educational background (JD/equivalent or specified units in accounting/taxation) or prove special competence approved by the Board; (2) of good moral character certified under oath by at least two disinterested persons; (3) not convicted by final judgment of crimes involving moral turpitude or found guilty of tax-code penalized offenses or aiding/abetting such offenses; and (4) a Philippine citizen.
For GPPs: partners and authorized representatives must meet individual qualifications; and the GPP must be registered with SEC. For incorporated entities: the firm must be registered with SEC, and the applicant officers/representatives must meet the individual qualifications for an individual applicant.
All applicants file the prescribed application form with the RRAB of the place where the individual applicant or the general professional partnership has its residence or principal place of business.
For individuals: (1) CPA certificate of registration and current PRC license (if a CPA); (2) certificate of membership with PICPA or ACCPA (if a CPA); (3) certificate of good moral character issued by two disinterested persons (Bar or CPA in good standing); and (4) if non-CPA, transcript of records showing required units in accounting/taxation or proof of special competence in tax matters/training for evaluation and approval by the Board.
If the application is complete, the RRAB evaluates and forwards recommendation to RNAB within 30 days from receipt. The RNAB must act on applications recommended to it within 30 days from receipt.
It is valid for three (3) years from the date of issue unless sooner revoked for cause.
If accreditation is cancelled/suspended/revoked, the agent may appeal to the Commissioner within 15 days from receipt of notice. The Commissioner’s decision is immediately executory. Then a Petition for Reconsideration may be filed with the Secretary of Finance within 15 days. The Secretary must act within 60 days; failure to act deems the Commissioner’s decision sustained.
They include avoiding conflicts of interest; verifying relevant facts and ensuring representations contain no falsehood; relating law to actual facts and clearly identifying assumptions; ensuring all material issues are fairly addressed; providing opinions consonant with law and not presenting voided/superseded positions as true; informing clients of likely penalties for failure/omission; and making reasonable inquiries and examining proofs when information is incorrect/inconsistent/incomplete. Willful or reckless violations may lead to disciplinary action.
Grounds include: conviction of tax-related/dishonesty/breach of trust offenses; giving false or misleading information to the BIR; obtaining employment through false/misleading representation or claiming improper influence; tax evasion or facilitating evasion; misappropriation or failure to remit client funds for taxes; attempts to influence BIR officials via threats/inducements/gifts; disbarment/suspension as attorney or CPA; contemptuous conduct; giving false opinions knowingly/recklessly/gross incompetence; and Tax Code offenses such as falsifying audit/exam reports, certifying misstatements, signing without actual audit, assisting improper records/books, false entries, maintaining multiple sets of records, willful tax evasion, using fake accountable forms, bribery, and similar offenses.