BIR Revenue Regulations No. 13-97

January 30, 1998 PSE MEMO FOR BROKERS NO. 043-98 SUBJECT : BIR Revenue Regulations No . 13-97 This refers to BIR Revenue Regulations No. 13-97 (Annex "A") requiring all persons liable for the value-added tax (VAT) to submit to the BIR each and every name of all buyers and sellers/suppliers of goods and services subject to VAT, to be contained in the quarterly Summary Lists of their Sales and Purchases of goods and services. Please be informed that our own in-house lawyers have unearthed Letter of Instructions ("LOI") No. 1133 (Annex "B" hereof) limiting the documents that may be required by BIR on stock transactions and prohibiting the inquiry into the sourcing of funds used in the acquisition of stocks listed in the stock exchange. Invoking the principle behind the LOI, we have filed a Motion for Reconsideration (Annex "C" hereof) of the implementation of the said Revenue Regulation and the suspension of the filing period contained therein. Cdphil In the meantime, opinions gathered from our external lawyers, tax consultants and the BIR suggest that the last day for filing for the last quarter of 1997 is due on 31 January 1998 and that our member-brokers are not exempt. Pending the resolution of our request for reconsideration, it is our considered opinion that perhaps a substantial compliance with BIR Revenue Regulations No. 13-97 would be sufficient in the meantime, i.e., by submitting those from which input taxes may be derived, such as office supplies, rent, consultancy services subject-to VAT, contractual services for security guards, and the like. Our external tax consultant opines that judging from the intent of the Revenue Regulation, it is sufficient to simply lump the source of output VAT (which comes mostly from VAT on commissions), without enumerating the list of clients from whom the VAT was collected. This opinion is given in our quest to assist our member-brokers in their compliance with the said BIR Revenue Regulation and does not prevent them from strict compliance therewith. For your information and guidance. (SGD.) JOSE LUIS U. YULO, JR. President & Chief Executive Officer