Question & AnswerQ&A (Commonwealth Act No. 131)
The purpose of BIR Revenue Regulations No. 3-2010 is to provide the rationale and guidelines for the submission of the Statement of Management Responsibility that must accompany the financial statements submitted with the annual income tax return.
The regulations apply to all taxpayers required to file an annual income tax return under the National Internal Revenue Code, as amended.
The annual income tax return must be accompanied by a Statement of Management Responsibility.
The management of the taxpayer is primarily responsible for the annual income tax return.
The statement must affirm that the management is responsible for all information and representations in the annual income tax return, the accompanying financial statements, and other tax returns filed for the reporting period. It must also affirm that the documents are complete, correct, and prepared in accordance with applicable laws, regulations, and accounting standards.
It must be signed by the Individual Taxpayer, President or Managing Partner, the Chief Executive Officer or its equivalent, and the Chief Financial Officer or its equivalent, or any officer performing similar functions regardless of their designation.
For foreign corporations with branches in the Philippines, the Statement must be signed by the local manager in charge of its operations.
Any person who violates the provisions shall, upon conviction for each act or omission, be punished by a fine or imprisonment, or both, as prescribed in the National Internal Revenue Code.
The regulations take effect after fifteen (15) days following complete publication in a newspaper of general circulation in the Philippines.
All existing rules, regulations, and other issuances or portions thereof inconsistent with these regulations are modified, repealed, or revoked accordingly.