Many taxpayers hire accountants and auditors to maintain accurate financial records and facilitate proper tax payments. Despite these efforts, errors or discrepancies may still occur, resulting in erroneously or illegally collected taxes, or overpayments on tax returns filed by taxpayers with the Bureau of Internal Revenue.
Following the passage of the Ease of Paying Taxes (EOPT) Law, the BIR issued Revenue Memorandum Order (RMO) 27-2024 to provide guidelines for processing and granting of claims for the issuance of tax credit certificates or cash refund (tax credit or refund) of taxes erroneously or illegally received or collected, or penalties imposed without authority, pursuant to Section 204(C) in relation to Section 229 of the Tax Code.
To fully grasp the definition of tax credit and tax refund, the Supreme Court, in a case, clarified that a tax credit differs from a tax refund: “(T)ax refund is defined as the money that a taxpayer overpaid and is thus returned by the taxing authority. Tax credit, on the other hand, is an amount subtracted directly from one’s total tax liability. It is any amount given to a taxpayer as a subsidy, a refund or an incentive to encourage investment.”
In accordance with the issued RMO, the BIR discussed that for a taxpayer to validly claim a tax credit or refund pursuant to Section 204(C), in relation to Section 229 of the Tax Code, the following essential requisites must be met:
1. The tax credit or refund claim pertains to taxes erroneously or illegally received or collected or penalties imposed without authority.
Bu hikaye The Philippine Star dergisinin September 17, 2024 sayısından alınmıştır.
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Bu hikaye The Philippine Star dergisinin September 17, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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