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    157.registration of Computerized Accounting Systems by Large Taxpayers - jfd.08.19.2010

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    Stephanie Mariz Khan
    The Bureau of Internal Revenue issued regulations mandating large taxpayers to adopt computerized accounting systems by December 31, 2009. However, the regulations did not take effect until January 2010, after the deadline. In response, the BIR issued a revenue memorandum allowing large taxpayers who missed the deadline to request an extension until December 31, 2010 to register their computerized accounting systems. The memorandum provides guidelines for taxpayers to submit extension requests and the process for evaluating the requests. It also defines the types of large taxpayers covered under the new regulations.

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    157.registration of Computerized Accounting Systems by Large Taxpayers - jfd.08.19.2010

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    Stephanie Mariz Khan
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    The Bureau of Internal Revenue issued regulations mandating large taxpayers to adopt computerized accounting systems by December 31, 2009. However, the regulations did not take effect until January 2010, after the deadline. In response, the BIR issued a revenue memorandum allowing large taxpayers who missed the deadline to request an extension until December 31, 2010 to register their computerized accounting systems. The memorandum provides guidelines for taxpayers to submit extension requests and the process for evaluating the requests. It also defines the types of large taxpayers covered under the new regulations.

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    157.Registration of Computerized Accounting Systems by Large Taxpayers.jfd.08.19.2010

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    The Bureau of Internal Revenue issued regulations mandating large taxpayers to adopt computerized accounting systems by December 31, 2009. However, the regulations did not take effect until January 2010, after the deadline. In response, the BIR issued a revenue memorandum allowing large taxpayers who missed the deadline to request an extension until December 31, 2010 to register their computerized accounting systems. The memorandum provides guidelines for taxpayers to submit extension requests and the process for evaluating the requests. It also defines the types of large taxpayers covered under the new regulations.

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    © All Rights Reserved
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    Download as pdf or txt
    99 views2 pages

    157.registration of Computerized Accounting Systems by Large Taxpayers - jfd.08.19.2010

    Uploaded by

    Stephanie Mariz Khan
    The Bureau of Internal Revenue issued regulations mandating large taxpayers to adopt computerized accounting systems by December 31, 2009. However, the regulations did not take effect until January 2010, after the deadline. In response, the BIR issued a revenue memorandum allowing large taxpayers who missed the deadline to request an extension until December 31, 2010 to register their computerized accounting systems. The memorandum provides guidelines for taxpayers to submit extension requests and the process for evaluating the requests. It also defines the types of large taxpayers covered under the new regulations.

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    BDB Laws Tax Law for Business appears in the opinion section of Business Mirror every

    Thursday.

    Registration of computerized accounting systems by large


    taxpayers
    Late last year, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR)
    No. 9-2009 mandating large taxpayers classified under Revenue Regulations No. 1-98
    to maintain and/or adopt Computerized Accounting System (CAS) or components
    thereof. The said regulation required the large taxpayers who are maintaining their
    books of account and accounting records in manual form to register their CAS not later
    than December 31, 2009.

    However, RR 9-2009 took effect in January 2010. Thus, the deadline provided for large
    taxpayers to shift from the manual to CAS had already lapsed even before the said
    regulations could take effect. Recently, the BIR issued Revenue Memorandum Circular
    (RMC) No. 68-2010 allowing large taxpayers who failed to comply within the deadline set
    forth in RR No. 9-2009 to file a letter requesting an extension of time within which to
    comply with the requirements provided under RR No. 9-2009.

    The letter request must be addressed to the Assistant Taxpayers Service (ACIR-LTS)
    and must be accompanied by a Sworn Statement stating, among others, the reason or
    justification for failing to comply with the requirements and the specific timeline within
    which to effect the registration of its CAS and/or components.

    The Chief of LTAD or LTDO, as head of the Computerized System Evaluation Team
    (CSET), shall evaluate the propriety of the request for extension by the taxpayer and
    recommend to the ACIR-LTS, the approval or disapproval of such request. Accordingly,
    all letter-reply to the request for extension shall be signed by the ACIR- LTS. However,
    the said RMC specifically provides that the grace period that may be granted to the
    taxpayer shall not be later than December 31, 2010.
    The large taxpayers covered by this circular are the following:

    1. Those using an excel program in their recordkeeping or maintaining their


    books of accounts and other accounting records in manual form;

    2. Those already using computerized accounting system (CAS) and/or


    components thereof, whether off-the-shelf or customized system, without
    securing the required Permit to Use/Adopt CAS and/or Components thereof, from
    the Large Taxpayers Service; and

    3. Those using computerized accounting systems and/or components thereof


    and were issued permit to use such system prior to taxable year 2002, but are
    required to apply for revalidation of existing permit on or before December 31,
    2010.

    For purposes of determining the accounting software to be used, the large taxpayers
    should ensure that the chosen software will meet the electronic recordkeeping
    requirements of the BIR pursuant to RR 9-2009, which requires, among others, that the
    electronic records used to establish tax compliance shall contain sufficient transaction-
    level detail information so that the details underlying the electronic records can be
    identified and made available to the BIR upon request. At the time of an examination, the
    retained records must be capable of being retrieved and converted to a standard record
    format in accordance with RR No. 16-2006.

    The selection and customization of the accounting software to be used requires some
    time to complete. In addition, the application and approval process of the CAS may take
    at least 40 days to conclude for application requiring systems demo with cross RDO
    evaluation. However, the large taxpayer may also be using accounting software that
    was previously accredited by the BIR. This way, the application and approval process
    will only take 10 days since no systems demo with cross RDO evaluation shall be
    required But since this is a mandatory requirement, large taxpayers should look into this
    requirement seriously to avoid incurring penalties and other unnecessary consequences.

    The author is a senior associate of Du-Baladad and Associates Law Offices (BDB Law).
    If you have any comments or questions concerning the article, you can e-mail the author
    at [email protected] or call 403-2001 local 350.

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