Bureau of Internal Revenue (BIR) Commissioner Kim Henares has issued a memorandu m prescribing the new process and additional documentary requirements for reques ts from taxpayers for BIR rulings, which are usually sought for the purpose of s eeking tax exemptions. Under Revenue Memorandum Order No. 9-2014, Henares clarified that aside from the "no-ruling" areas, or the specific cases wherein the BIR would not entertain an y requests for rulings, the BIR would automatically reject requests for rulings which do not comply with the documentary requirements. "Moreover, the Bureau does not give tax planning advice and does not 'approve' t ax planning arrangements. Also, the Bureau will not resolve an issue through a r uling if the matter can be determined through another process (i.e. appeal)," th e memorandum said. Section 5 of RMO 9-2014 provides that: "In addition to the specific documentary requirements provided under applicable revenue issuances, a request for ruling m ust be accompanied by the following documents: a. Certified true copy of all doc uments that are material to the transaction, including contracts, wills, deeds, agreements and instruments; b. proof that taxpayer is entitled to exemption or i ncentive; and c. special power of attorney or authorization in case the request is filed by a representative of the taxpayer." The memorandum said that if the documents submitted are insufficient or incomple te, the request for an opinion or a ruling on that particular transaction shall be denied. "After the request is submitted, with the sworn statement prescribed in Section 4 hereof, there will be no other communication with the applicant. The Law and L egislative Division shall evaluate the request. If the documents submitted are i nsufficient or incomplete, the same shall be dined and communicated in writing t o the taxpayer stating therein the reason for denial," the memorandum said. Meanwhile, lawyer Alexander Cabrera, chairman of Isla Lipana & Co. which is the Philippine member firm of the PwC global network, said that businessmen and corp orations have no problem complying with the additional requirements for tax exem ption rulings being imposed by the BIR. But he said that the BIR should make the turnaround time for such requests for rulings and tax exemptions shorter. Cabrera said that the waiting period for a tax ruling from the BIR ranges from s ix months to about three years. (David Cagahastian)
John William Dunn v. Raymond J. Colleran (Acting Superintendent) The Attorney General of The State of Pennsylvania The District Attorney of Allentown, Pa, 247 F.3d 450, 3rd Cir. (2001)