QuestionsQuestions (REVENUE MEMORANDUM CIRCULAR NO. 57-2015)
Section 6(H) of the Tax Code of 1997, as amended, which authorizes the Commissioner to prescribe additional procedural or documentary requirements for tax administration and enforcement.
To provide guidance on how inventory and other financial accounting information (in addition to the annual inventory list under Section 13 of RR No. V-1) should be reported to the BIR, for improved monitoring and data adequacy.
Taxpayers maintaining inventories such as stock-in-trade, raw materials, goods in process, supplies, and other goods, including manufacturing, wholesaling, distributing/retailing sectors; real estate dealers/developers; service companies like construction companies and building contractors.
The data/information in the schedules/lists must be reconciled with the amounts declared in the financial statements and annual income tax returns.
Manufacturing/merchandising/retail: Annexes Aa (as stated in the text); Real estate: Annexes aBa and aB-1a; Construction industry: Annex aCa. Taxpayers outside these industries must adopt the applicable prescribed format that fits their existing inventory.
Soft copies must be stored/saved in a Digital Versatile Disk-Recordable (DVD-R) properly labeled, and submitted together with a notarized certification (as shown in Annex aDa) signed by the authorized representative certifying the data are true and correct.
For initial filing, the schedules and inventory list must be submitted on or before September 30, 2015 covering ending inventory as of December 31, 2014.
Thereafter, every 30th day following the close of the taxable year, depending on the taxpayer’s accounting period adopted under Section 13 of RR No. V-1.
The inventory at the beginning is submitted within ten (10) days after securing the privilege tax receipts or starting business; subsequent inventories (annual) are filed not later than thirty (30) days after the close of the calendar year or accounting period (with possible extension in meritorious cases).
To the concerned Revenue District Office (RDO) where non-large taxpayers are registered; and to the Large Taxpayers Assistance Division (LTAD), Excise Large Taxpayers Regulatory Division (ELTRD), Large Taxpayers Division (LTD) in Makati and Cebu for taxpayers classified as large under the Large Taxpayers Service.
It shall be deemed not received by the concerned BIR office, and may be considered as grounds for the imposition of penalties under the NIRC of 1997, as amended.
Penalties are subject to Section 250 and 255 of the NIRC. Section 250 covers failure to make/file/submit information returns, schedules, reports, sworn statements, certifications and other documents or keep required records; Section 255 covers failure to make/file/submit a return or supply correct information at the time required by law or regulation.
One thousand pesos (₱1,000) for each information return, schedule, report, sworn statement, certification, other document not made/filed/submitted, or for each record not maintained; but the aggregate amount imposed during a calendar year shall not exceed twenty-five thousand pesos (₱25,000).
A fine of not less than ₱10,000 and imprisonment of not less than one (1) year but not more than ten (10) years, with compromise amounts depending on the level of gross sales/earnings/receipts or related estimates/gifts as shown in the circular’s excerpt.
It takes effect immediately. Officials and employees are enjoined to give the circular as wide a publicity as possible.
Yes. The circular states that non-conforming submissions shall be deemed not received and can be grounds for imposition of penalties under the NIRC; thus, compliance with format is crucial to avoid being treated as a failure to submit.