Thursday, 30 April 2015

Thermal Paper for Official Receipts and Sales Invoices: Banned by the Bureau of Internal Revenue

During a BIR investigation, the revenue examiner disallowed substantial expenses because he found out that the supporting evidences that the supermarkets and restaurants issued already faded away... What left from these thermal-papered official receipts and sales invoices were blank sheets of paper.  .... Hundred thousand pesos had been paid for the deficiency tax, surcharge, interest and penalty due to this negligence..

This can be avoided it you the readers hereof shall provide a copy of this letter to every business establishment that issued thermal papered official receipts and sales invoices.... IF THEY'RE STILL SO STUBBORN ... please send to Unit 419, Corporate 101, Mother Ignacia, Quezon City... their issued official receipts or sales invoices so that the information about it may be sent to the BIR...

Tax Accounting
Seminar Workshop

University of the Philippines
Institute for Small Scale Industries
Diliman, Quezon City

For details, please

0922 8010922, 0998 9793922

439 3918, 921 6107


Kataxpayer Ako. Kaalaman. Karapatan. Katarungan
UNTV Channel 37
Mondays, 4.15-4.45 pm
Hosted by
Divine Grace Fresco, President, ETM Tax Agent Office (ETM-TAO)
Emelino T Maestro (ETM)


Tuesday, 28 April 2015

Manny Pacman Paquiao versus Bureau of Internal Revenue

ETM was amazed when during an interview about his fight against Floyd Mayweather Jr announced and confirmed that he personally bought tickets amounting two million (2,000,000) USDollars. In Philippine Pesos, it is around two hundred twenty (88,000,000) million.  ETM is expecting PACMAN to win against Floyd.

In his fight against a deficiency tax assessment amounting to three billion (3,000,000,000) Philippine pesos, the Court of Tax Appeals required him to post a bond amounting to twice such amount. In posting a bond, he must pay an insurance company amounting to four hundred ninety million (490,000,000) pesos. His lawyers filed a motion for reconsideration to reduce if not to totally eliminated this imposition.

Before his tax case was elevated to the Court where it was believed that more than one hundred million (100,000,000) pesos were paid to the Court and the lawyers who are handling the case, the BIR Chief was also interviewed by a TV station wherein she discussed the available remedy that PACMAN may opt to exercise. She told the Filipino people that PACMAN may settle his obligation using Section 204, National Internal Revenue Code.... As a taxnocrat for the past 30 years, when Section 204 is invoked, it means that PACMAN would only pay forty (40) percent of the basic deficiency tax... In peso-term, 40% of one billion (1,000,000,000) pesos is four hundred million (400,000,000). The amount that he would pay to the insurance company is more than enough to extinguish his tax due. The amounts that he paid for tickets, judicial fee and lawyers' fee totalled two hundred twenty million (220,000,000) pesos... Just one hundred eighty million (180,000,000) pesos away from the total amount.

If he really wanted to help the Filipino people, it is not enough that he must win every international fight. Not to mention that he will run for a higher governmental position in the coming year (2016), he must also show his sincerity and integrity by way of paying on time and correctly his internal revenue tax obligations.

Let's watch PACMAN do his very best against Mayweather this May 3, 2013 and hope that HE WILL WIN WITHOUT TOO MUCH DAMAGE TO HIS BODY AND MIND....

Mabuhay si Pacman.
Mabuhay ang mga Pilipino.

May 20, 21 & 22, 2015
University of the Philippines
Institute for Small Scale Industries
Diliman, Quezon City


For details, please email

please call Nica
439 3918, 0998 9793922

Sunday, 26 April 2015

When and where to submit your evidences? ....

This is a story of a young man who received a Formal Letter of Demand
(Demand) from the Bureau of Internal Revenue.. He asked ETM (Kataxpayer) if the attitude and behaviour of these revenue officers are in accordance with the normal attitude and behaviour that a real public servant possessed.

The Demand says that he has a huge tax obligation to settle and encourage him to settle it at once or file a protest letter within 30 days from its receipt.

ETM sided with him that instead of giving glory to an erroneous assessment, a protest letter must be submitted within the prescribed period... (For the past 30 years, never therein that ETM received a true and correct deficiency tax assessment).

After the protest had been filed, he must submit within 60 days from the time such protest was received.

It became a difficult task for him to submit his evidentiary documents because the district office and the assessment division which are, in ETM-opinion, manned by incompetent and innocent front-liners (not to mention ill-intentioned supervisors and head of offices). In other words, the assessment division is requiring him to submit his papers to the district office who doesn't want to accept because the docket as its excuse is not yet forwarded to it by the assessment division. When he went to the assessment division to submit his documents, the assessment division reasoned out that the docket will eventually be given to the district office so it is proper as the said division insisted that such evidences must directly be submitted to the district office.

This is called by many as the 'ping-pong' approach where the taxpayer under investigation is being deprived to support his protest so that the Demand may become final and unappealable. DON'T BE A PREY TO THIS TRAP....

To avoid this, 10 days before the 60th day to submit documentary evidences, a taxpayer MUST prepare a transmittal letter addressed to the BIR Chief. Then, such, together with his documentary papers, shall be sent via Philippine Postal Corporation's facility (registered mail/parcel with return card) to the BIR Chief.  If the BIR Chief received them, he/she will be the one to forward the same to the assessment division. And, this will create trouble to its head of office because getting them from the BIR Chief's office entails costs on his office's part. Not to mention that he/she may be warned for failure to inform and advise a taxpayer where to submit the latter's evidences.

Evidences in support of a protest must be submitted, in a regular course, to the assessment division but many personnel therein are ignorant or pretending to be dumb and dumber... Don't trust these people....


Free Tax Accounting
Seminar Workshop

University of the Philippines
Institute for Small Scale Industries
Diliman, Quezon City

For schedules, please
0998 9793922
0922 8010922
439 3918

read other expose' regarding
BIR revenue officers
Malfeasance, Incompetence, Negligence, Delinquency (MIND)

Thursday, 16 April 2015

Joseph Calata...a victim? ... in the pursuit of fame and fans?....and institution of fear?

This is privileged communication.

In the spirit of fairness and fearlessness, wants to clarify certain vague and unusual stories and statements behind the Bureau of Internal Revenue's filing of tax evasion charge against JOSEPH CALATA.

Apparently, as stated in the news conference held to provide information to the taxpaying public, Joseph's gross income in 2006 was pegged at 2 million pesos and in 2011, the investigating team found out, using the information filed in the Securities and Exchange Commission and Philippine Stock Exchange, that Joseph's asset had increased to 214 million pesos. Accordingly, by presuming, the said team, through the voice of the BIR, alleged that the increase in net worth is to be considered as an undeclared income. Such undeclared income is subject to 12% VAT and 32% income tax. Finally, the same team concluded that Joseph knowingly failed to declare this asset in his financial report.

From the POINT OF VIEW OF UNTRAINED MINDS, the story and the statements inside such story seemed to be undeniably true and correct but to those who have opened eyes and minds, the same is a semblance of generalisation, distortion and deletion (GDD)..

The GDD is a term that is used to confuse and abuse the minds of the INNOCENT and IGNORANT. However, to help these minds, please allow me to explain what ETM (who will have a TV program that will protect the interest of taxpayers at UNTV starting April 27(tentatively) which will be entitled KATAXPAYER. Kaalaman, Katarungan at Karapatan, 4.15-4.45 pm) believes to be behind the story and the statements of the BIR.

First, the BIR says that an increase in net worth is an increase in gross income and failure to declare this increase is considered to be a tax evasion activity. TO REFUTE THIS GENERALISATION AND DISTORTION, an increase in net worth may come from five (5) sources.

1. An increase in net worth due to inheritance means without an active activity from Joseph, he became the beneficiary of an asset. Therefore, he cannot be faulted for having amassed the said asset. However, the estate should be examined if the proper estate tax had been paid.

2. An increase in net worth due to donation means that Joseph is again a beneficiary of an asset without any effort in receiving the same. Therefore, he cannot be faulted for having amassed the said asset. However, the donor should be examined if the proper donor tax had been paid.

3. An increase in net worth due to buying an asset from the proceeds of loan means that Joseph has not active income to declare because no income is made when he used the cash from loan to buy an asset. However, the lender should be investigated if the proper documentary stamp tax had been paid.

4. An increase in net worth due to an increase in the value of an asset means that Joseph did not make any active income because there was no sale, exchange or barter of the said asset. According to numerous BIR issuances, an increase in the value of a property is not subject to 12% VAT and 32% income tax.

5. An increase in net worth due to an increase of cash derived from trade, business or practice of profession means that indeed an active income had been made. And, if this is the real fact, then, Joseph should pay his due to the Philippine Government.

Now that it became clearer to you, the reader hereof, that there are five (5) possibilities in increasing Joseph's net worth.

Therefore, the allegation of the BIR may be 20% correct and the probability that the allegation of the BIR is incorrect is 80%.

Finally, it is wrong to state that all assets must be declared by a taxpayer. Taxpayers are required to declare their business assets while their personal assets are not required to be disclosed either in their tax returns or financial statements. Thus, any personal asset can't be seen in the said return and statement. AGAIN, ONLY BUSINESS ASSETS ARE REQUIRED TO BE SHOWN TO THE BIR AND IF PASSIVE INCOME IS DERIVED FROM THE PERSONAL ASSETS, ONLY THE PASSIVE INCOME IS REQUIRED TO BE DECLARED IN THE RETURN AND STATEMENTS AND NOT THE ASSET ITSELF.

The GDD doctrine is so prevalent in every walk of life..... Please be careful in receiving and accepting messages even if they may come from honourable persons.

Thank you.

Sunday, 12 April 2015

e-BIR FORM.... Irregular? Illegal?

In some forum or social network, my initial 'ETM' was mentioned. I was being asked to spearhead a 'revolt' against the unilateral and onerous action of the management and staff of the Bureau of Internal Revenue in relation to the so-called 'electronic BIR Forms'.

According to the information that I gathered, the use of the e-BIR Form is a MUST. Those who will violate this BIR's order shall be dealt with the full force of the law.

It is understood that the purpose of imposing the use of these e-BIR forms is geared toward to the correct assessment of taxes. However to protect the interest of the Philippine Government in collecting taxes, the BIR must not increase the burden of complying with the preparation and filing of returns and reports. The tax itself is a burden, a cost or an expense. Thus, to impose an additional burden, a cost or an expense in paying it is unnecessary, irregular and unwanted.

To use the e-BIR Forms, a taxpayer needs electricity, a computer, an internet connection, and the competence in using an internet service and the software incorporated in every e-BIR Form. The BIR's management would agree that not every taxpayer in this Republic is internet-literate. It would also accept that not all areas in the Philippine has electricity and internet connections. Notwithstanding that many taxpayers at this point are still illiterate in using computer and don't own a computer hardware.

I laughed aloud when I heard a BIR-official emphasising in a TV propaganda that an immediate crash-course was set-up for the BIR's front-liners so that these BIR personnel may have the competency to teach the taxpayers on how the e-BIR Forms preparation and filing shall be utilised. E-lounges were also set up to help those who don't have computer hardwares.

As one can see, the e-BIR Form set up is hastily made because even the front-liners of the BIR are not qualified to help a taxpayer in need. A crash-course for that matter is not enough. E-lounge program is a futile act to cover up incompetency.

Let ETM remind every taxpayer that you still have the option to file your return manually. The question is that the BIR and the AAB (bank) would not accept it.

Here are the simple procedures to be followed...
1. Prepare a check for the amount due.
2. Type your correct info on the required BIR Form.
3. Attach the check to the BIR Form.
4. Attach the required attachments to the BIR Form.
5. Prepare a covering letter for the check, BIR Form and its attachments.
6. Address the covering letter to the BIR Chief.
7. Include in the covering letter the reason why you are paying your tax due and filing you BIR Form and its attachment to the BIR Chief. (Main reason is that you are incompetent to use the e-BIR Form).
8. File the letter together with the original check, BIR Form and its attachments to the Office of the BIR Commissioner.
9. Have a copy of the covering letter, photocopy of your check, BIR Form and its attachments be stamped 'received', signed and dated by the BIR Commissioner's secretary or clerk.
10. Wait for a reply.

Please be guided accordingly.

April 12, 2015



April 22, 23 & 24, 2015
Also in May 2015

For details, reservation and registration, please call or email
Nica @ 0998 9793922 or

Sunday, 5 April 2015

Sample Letter to a Dealer of Chevy Trailblazer... NO REGISTRATION, NO TRAVEL POLICY... LTO

ETM Tax Agent Office (ETM-TAO), Inc
Unit 419 Corporate 101, Mother Ignacia, Quezon City

Legal Petition Notice
For the Urgent Action of the President and After Sales Manager
of Advan Motor, Inc., Quezon Avenue, Quezon City

The dealers and buyers of new vehicles had been warned by the Land Transportation Office to register such vehicles within the specified limit.

According to Advan Motor, Inc.’s advertisement and promise, the registration of the same vehicle shall be its exclusive obligation. Such obligation had the force of the law.

The four (4) basic requirements in registering a new vehicle are the (1) Certificate of Stock Report, (2) registration fee, (3) Sales Invoice, and (4) Insurance Policy.

The purpose of CSR is to ascertain that the excise tax, value added tax and other duties had been paid. 

Disappointingly, more than thirty (30) days had lapsed but no registration papers had been provided to ETM TAO. Consequently, the vehicle with conduction sticker WC 3040 was grounded and will remain the same until Advan Motor, Inc shall act according to the language of its advertisement and contract that it entered into.

Last March 31, 2015, Advan Motor, Inc. informed ETM TAO that the CSR is yet to be secured from the manufacturer. That’s not the problem of the buyer. That problem should not be passed on to the buyer. A negligent act had knowingly been perpetuated. For failure and refusal to register the said vehicle, ETM TAO is suffering financially. Notwithstanding the mental anguish and unbearable stresses that this easy to comply situation had given.

Through Ms. Vinette Santos and Mr. Rupert Guerra, ETM TAO is appealing that the required Certificate of Registration, Official Receipt and Plate Number for WC 3040 shall be provided on or before April 8, 2015 5 pm

A written reply and compliance is earnestly sought.

Emelino T Maestro

For the Perusal of ……
The Chief of Office, Land Transportation Office
    Honourable Secretary, Department of Trade and Industry
        Honourable Commissioner, Bureau of Customs

             Atty. Alberto B. Arcilla, The Covenant Car Company Inc.