Hidrología local - Caso de estudio - INSTITUTO POLITÉCNICO NACIONAL ESCUELA SUPERIOR DE INGENIE

Capítulo 3: Caso de estudio

3.8 Hidrología local

At the option of the person liable, he may file

- a separate return for each branch or place of business, or

- a consolidated return

with authorized agent bank, Revenue District Office, Collection Agent or City/Mun. Treasurer where the business or principal place of business is located.  The Commissioner may prescribe rules and

regulations altering the time and manner of payment prescribed herein.

 The Commissioner may prescribe a minimum amount of gross receipts where it is found that a person:

1. has failed to issue receipts or invoices 2. does not file a return, or

3. if records of the books of accounts do not correctly reflect the declarations in the return.

EXCISE TAX

Goods Subject to Excise Tax (Sec. 129, NIRC)

 Goods manufactured or produced in the Philippines for domestic sale or consumption or other disposition

 Things imported NOTE:

 Excise tax is imposed in addition to VAT.  The tax attaches even on articles illicitly

made, or the production of which is prohibited or punished by law.

Two Classifications of Excise Tax:

 Specific tax- tax is based on weight or

volume capacity or other physical unit of measurement

 Ad valorem tax - tax is based on selling price

or other specified value of the good Purpose and justification of excise taxes:

1. To curtail consumption of certain

commodities, excessive or indiscriminate use of which is considered harmful to the individual or community. Taxes of this kind are sumptuary in nature and are exemplified by the taxes on alcoholic beverages and tobacco products

2. To protect a domestic industry the products

of which face competition from similar imported articles

3. To distribute the tax burden in proportion to

the benefit derived from a particular government service. Examples are the excise taxes on gasoline, lubricating oils and denatured alcohol for motive power, and

4. To raise revenue

When Excise Taxes Accrue

 As to domestic products – They accrue or

attach as soon as the articles are produced, or come into existence as in the case of distilled spirits (Sec. 141) and manufactured and other fuel oils (Sec. 148)

 As to imported articles – They accrue as soon

as the articles are brought into the Philippine jurisdiction with the intention to unload them here.

Filing of Return and Payment of Excise Tax on DOMESTIC Products (Sec. 130)

(A) Persons liable to file a return, filing of return on

removal and payment of tax

1. Person Liable to File a Return

- such person shall file a separate return for each place of production setting forth, among others:

o Description and quantity or volume of products removed

o Applicable tax base o Tax due

- in the case of indigenous petroleum, natural gas or liquefied natural gas  excise tax shall be paid by first

buyer, purchaser or transferee for local sale, barter or transfer

- export products

 excise tax shall be paid by owner, lessee, concessionaire or operator of the mining claim

- should domestic products be removed from the place of production without the payment of tax, the owner or possessor shall be liable for the tax due

2. Time of Filing of Return and Payment of Tax

- GENERALLY: return shall be filed and excise tax shall be paid by the manufacturer or producer before removal of the domestic products from place of production unless otherwise specifically allowed

- HOWEVER, IN CASE OF:

 nonmetallic mineral or mineral products and quarry sources due and payable upon removal of such products from locality where mined and extracted

 locally produced or extracted metallic mineral or mineral products: o file return and pay tax within 15

days after end of the calendar quarter when such products were removed subject to conditions prescribed by rules and regulations to be promulgated by Secretary of Finance, upon recommendation of the Commissioner

o taxpayer shall file bond ≈ amount of excise tax due  IMPORTED mineral or mineral

products, whether metallic or nonmetallic  paid before their removal from customs duty

3. Place of Filing of Return and Payment of Tax

(GENERAL RULE)

 any authorized agent bank or Revenue Collector Officer, or

 duly authorized City or Municipal Treasurer

4. Exceptions (TO GENERAL RULE SET OUT

ABOVE)

- IN GENERAL: Sec of Finance, upon recommendation of Commissioner, may by rules and regulations prescribe: a. time of filing the return at intervals for a

particular class or classes of taxpayer b. manner and time of payment under a tax

prepayment, advance deposit and other similar schemes

- IN THE SPECIFIC CASES of:

 minerals, mineral products or quarry resources where the place of extraction is different from the place of processing or production, or  metallic minerals processed abroad,

 file and pay at the Revenue District Office having jurisdiction in the locality where it was mined, extracted or quarried

(B) Determination of Gross Selling Price of Goods

Subject to Ad Valorem Tax

Gross Selling Price= Price - VAT where Price is:

- That at which the goods are sold at wholesale in the place of production or through their sales agents to the public - If the goods are sold in another

establishment where the manufacturer is the owner or in the profits of which he has an interest, wholesale price there NOTE: if price < cost of manufacture + expenses incurred until the goods are finally sold  a proportionate margin of the profit (which is not less than 10% of such manufacturing costs + expenses) shall be added to the GSP

(C) Manufacturer’s or Producer’s Sworn Statement It shall show:

- different goods and products manufactured or produced,

- their corresponding GSP or market value - Costs of manufacture or production +

expenses incurred or to be incurred until goods are sold

(D) Credit for Excise Tax on Goods Actually Exported In case goods produced or manufactured are removed and actually exported without returning to the Philippines:

- GENERAL RULE  any excise tax paid shall be credited or refunded upon submission of proof of actual exportation and upon receipt of the foreign exchange payment

- EXCEPTION (i.e., NOT credible): mineral products

o EXCEPTION TO EXCEPTION: coal and coke

Payment of Excise Tax on IMPORTED Articles (Sec. 131)

(A) Persons Liable - Paid by:

 owner or importer to the Customs Officers before release from the customhouse, OR

 person found in possession of articles which are exempt from excise taxes other than those legally entitled to exemption

- In case tax-free articles brought in by exempted persons or entities or agencies are subsequently sold, transferred or exchanged in the Philippines  purchaser or recipients shall be considered importers and shall be liable for duty and internal revenue tax due

- Importation of cigar, cigarettes, distilled spirits and wines even if destined to tax and duty-free shops shall be subject to all applicable taxes, EXCEPT:

1. such are brought directly into Subic Special Economic and Freeport Zone; Cagayan Special Economic Zone and Freeport; Zamboanga City Special Economic Zone and not transshipped to any other port in the Philippines

2. importation done by government-owned and operated duty free shop like DFP, PROVIDED such products are labeled ‘tax and duty free’ and ‘not for resale’  if such products are eventually introduced to Philippine customs territory, then such articles shall be deemed imported into Phil and be subject to all import and excise taxes

 HOWEVER, removal and transfer from one Freeport to another Freeport shall not be deemed an introduction to Phil territory.

- cigar, cigarettes, distilled spirits and wines in duty free shops which are NOT LABELED AS REQUIRED, as well as

those articles obtained from duty free shops and subsequently FOUND IN NON DUTY FREE SHOPS FOR RESALE

 confiscated and perpetrator punished  tax due on any such goods,

products, machinery, equipment and other similar articles shall constitute a lien on the article itself which shall be superior to all other liens

(B) Rate and Basis of the Excise Tax on Imported

Articles

Unless otherwise specified, imported articles shall be subject to the same rate and basis of excise taxes applicable to locally manufactured articles Exemption / Conditional Tax-Free Removal of Certain Articles

a. denatured wine/spirits for treatment of tobacco leaf

b. domestic denatured alcohol rendered unfit for oral intake, but VAT should be paid

c. petroleum products sold to:

 international carriers (Philippine or foreign carriers) on their use or consumption outside the Philippines, provided there is reciprocity

 exempt entities covered by tax treaties, conventions, international agreements, provided there is reciprocity

 entities which are by law exempted from direct & indirect taxes

d. removal of spirits under bond for rectification e. removal of fermented liquors to bonded

warehouse

f. removal of damaged liquors

g. removal of tobacco products entirely unfit for chewing/smoking

Tax on Alcohol Products - Definition

a. distilled spirits – substance known as ethyl alcohol, ethanol or spirits of wine including whiskey, brandy, rum, gin and vodka, from whatever source, by whatever process produced

b. wines – all alcoholic beverages produced by fermentation without distillation from the juice of any kind of fruit; and fortified beverages c. fermented liquor – alcoholic

beverages produced by fermentation without distillation of grain or malt (beer, lager, ale, porter)

Sec. 141 Distilled Spirits (Rates of tax  as per RR 3-2006)

P11.65/ produced from sap of nipa,

proof liter coconut, cassava, camote buri palm or juice, syrup or sugar cane

 provided, materials are produced commercially in the country where they are processed

P4.48/ produced in a pot still or similar proof liter primary distilling apparatus

 distiller not producing >100L/day, containing <50% alcohol

 if produced from raw materials other than those above, tax is in accordance with the net retail price (NRP) (excluding VAT + excise tax) per 750 ml bottle: P126.00/ NRP < P250 proof liter P252.00/ NRP: P250 – P675 proof liter P504.00/ NRP >P675 proof liter

- Medicinal preparations, flavoring extracts, other preparations except toilet preparations, wherein distilled products form chief ingredient

 same tax as chief ingredient tax shall proportionally increase for any strength of spirit taxed over proof spirits. - Tax shall attach as soon as it is in existence

whether it is subsequently separated as pure or impure spirits or transformed into any other substance either in the process of original production or by any subsequent process.

Sec. 142 Wines (Rates of tax  as per RR 3-2006) P145.60

sparkling wines/champagne regardless of proof if NRP <P500/bottle

P436.80

sparkling wines/champagne regardless of proof if NRP >P500

P17.47

still wines 14% of alcohol by vol or less P34.94

still wines 14% - 25% of alcohol by vol

Fortified wines

- containing more than 25% of alcohol by volume - natural wines to which distilled spirits are

added to increase their alcoholic strength - taxed as distilled spirits

Sec. 143 Fermented Liquor (Rates of tax  as per RR 3-2006)

Beer, lager beer, ale. Porter and other fermented liquor

except tuba, basi, tapuy and similar domestic fermented liquors

P8.27/L NRP <P14.50 P12.30/L NRP P14.50 – P22 P16.33/L NRP >P22

P16.33/L those brewed and sold at micro- breweries or micro brew pubs

PENAL PROVISIONS:

- Brewer or importer who knowingly misdeclares or misrepresents in his sworn statement any pertinent data or information

 summary cancellation or withdrawal of his permit.

- Corporation, association or partnership

 fined treble the amount of deficiency taxes + surcharges + interest - person liable for acts or omissions prohibited

under this section

 criminally liable and penalized under Sec 254

- those who willfully abet or aid in the commission of such act or omission

 liable same as principal - offender not citizen of Phil

 deported after service of sentence Tax on Tobacco Products

- Definition

a. cigar – all rolls of tobacco or any substitute wrapped in leaf tobacco b. cigarette – all rolls of finely-cut leaf

tobacco or any substitute wrapped in paper or any other material

Sec. 144 Tobacco Products (Rates of tax  as per RR 3-2006)

P1.00/kg

tobacco twisted by hand or reduced into a condition to be consumed in any manner other than the ordinary mode of drying and curling

those prepared or partially prepared with or without use of any machine or instruments or without being pressed or sweetened

fine-cut shorts and refused, scraps, clippings, cutting, stems and sweepings of tobacco

P0.79/kg

specially prepared for chewing so as to be unsuitable for use in any other manner

Sec. 145 Cigars and Cigarettes (Rates of tax  as per RR 3-2006)

10% of NRP cigars

NRP (excluding excise tax and VAT) < P500 P50 + 15% of cigars

NRP in excess NRP (excluding excise tax and of P500 VAT) > P500

P2.00/pack cigarettes packed by hand

P25.00/pack cigarettes packed by machine NRP >P10

P10.35/pack cigarettes packed by machine NRP P6.50 – P10

P6.35/pack cigarettes packed by machine NRP P5 – P6.50

P2.00/pack cigarettes packed by machine NRP <P5

PENAL PROVISIONS:

- Brewer or importer who knowingly misdeclares or misrepresents in his sworn statement any pertinent data or information

 summary cancellation or withdrawal of his permit.

- Corporation, association or partnership

 fined treble the amount of deficiency taxes + surcharges + interest - person liable for acts or omissions prohibited

under this section

 criminally liable and penalized under Sec 254

- those who willfully abet or aid in the commission of such act or omission

 liable same as principal - offender not citizen of Phil

 deported after service of sentence Tax on Petroleum Products

Sec. 148 Manufactured Oils and other Fuels (Rates of tax  1997 NIRC, as amended by RA 9337 [2005])

P4.50/Kg or L Lubricating oil and greases (kg), and additives for lubricating oil and greases (L)

P0.05/L Processed Gas

P3.50/kg waxes and petrolatum

P0.50/L denatured alcohol for motive power P4.35/L naphtha, regular gasoline and other