Receiving a Final Assessment Notice (FAN) from the Bureau of Internal Revenue (BIR) can be alarming. For many taxpayers, it feels like the government has already made a final decision and that payment is unavoidable. However, this is not always the case. In Philippine tax law, the BIR must strictly follow the required procedures before a tax assessment can become valid, final, and collectible. If the BIR commits serious procedural errors in issuing or serving the FAN, the ass

Receiving a tax assessment from the Bureau of Internal Revenue can be stressful for any taxpayer or business owner. The amount may be significant, the deadlines may be strict, and the next step may not always be clear. Should you file a tax protest and fight the assessment? Or should you explore a compromise settlement with the BIR? The answer depends on the strength of your case, the amount involved, the available documents, the taxpayer’s financial capacity, and the risk of

A single photocopy can change the outcome of a criminal case. In People of the Philippines v. Ybo Lastimosa, G.R. No. 265758, promulgated on February 3, 2025, the Supreme Court confronted a deceptively simple but legally powerful question: may a photocopy of a death certificate be admitted in evidence and relied upon in a murder conviction? The Court answered yes. But the ruling is far more significant than the admissibility of one death certificate. It clarifies the modern a

Tax policy is rarely just about revenue. Sometimes, it is also about constitutional limits, economic strategy, tourism competitiveness, and the State’s power to design incentives for particular sectors. That is the core lesson of John Barry T. Tayam v. Ralph G. Recto, et al., where the Supreme Court En Banc upheld the constitutionality of Republic Act No. 12079, the law granting value-added tax refunds on certain local purchases made by qualified non-resident foreign tourists

Receiving a Final Assessment Notice, commonly called a FAN, is one of the most critical moments in a BIR tax assessment case. At this stage, the Bureau of Internal Revenue has already made a formal demand for payment of alleged deficiency taxes, penalties, surcharge, and interest. For many taxpayers, the first instinct is to negotiate, wait for further communication, or ask for informal discussions with the revenue officer. However, this is where many cases are lost. Taxpayer

The Philippines remains an attractive destination for foreign investors because of its growing consumer market, skilled workforce, strategic location, and expanding business opportunities. Many foreign entrepreneurs enter the country looking to set up corporations, branches, retail businesses, outsourcing companies, consulting firms, or joint ventures. However, doing business in the Philippines is not just about registering a company and starting operations. Foreign investors

When a taxpayer receives a tax assessment from the Bureau of Internal Revenue, the first reaction is often to wait, negotiate, or hope the issue can still be settled informally. However, in tax assessment cases, waiting too long can be risky. Before a taxpayer can go to the Court of Tax Appeals, there are administrative remedies that must usually be taken first. These steps are important because they protect the taxpayer’s right to question the assessment. Missing the require

Executive Summary The 40% foreign ownership rule is one of the most important rules foreign investors must understand before investing in a Philippine corporation. In simple terms, some business activities in the Philippines must remain at least 60% Filipino-owned. This means foreign investors may own only up to 40% of the corporation. This is commonly called the “60-40 rule” or the “40% foreign ownership limit.” However, the rule does not apply to every business. Some indust

Photo by: The Luzonian LUCENA CITY July 1, 2026. Atty. Yasser R. Aureada, CPA, Managing Owner of Aureada CPA Law Firm, was conferred the Most Distinguished Alumni Award 2026 by the Manuel S. Enverga University Foundation (MSEUF) during its 79th Commencement Exercises held at the Enverga University Gymnasium. The award, presented by the University's leadership together with the MSEUF Alumni Association, Inc., recognizes graduates whose accomplishments in their chosen fields br

Executive Summary Foreigners can legally invest in Philippine corporations, but the rules depend on the type of business, the industry involved, and the level of foreign ownership allowed by law. Some corporations may be 100% foreign-owned. Others are subject to foreign equity limits, such as 40%, 30%, 25%, or lower, depending on the activity. Certain areas are also reserved fully or partly for Filipino citizens or Philippine nationals. This is why foreign investors should no

Executive Summary When a taxpayer receives a BIR tax assessment, the biggest mistake is not always failing to pay. Often, the bigger mistake is missing the deadline to protest. In the Philippines, tax assessments are deadline-driven. A taxpayer may have strong defenses, complete documents, and valid legal arguments, but these may be wasted if the protest is filed late or incorrectly. The most important deadline is usually the thirty-day period to protest a Final Assessment No

Executive Summary Receiving a BIR Final Assessment Notice, or FAN, is one of the most serious stages of a tax audit. It means the Bureau of Internal Revenue has issued a formal assessment and demand for payment of alleged deficiency taxes. However, a FAN does not always mean the taxpayer has no more options. In many cases, taxpayers may still challenge the assessment by filing a proper protest within the required period. The key is timing, documentation, and strategy. A succe

Executive Summary Directors and officers are trusted to make decisions for the benefit of the corporation. They manage corporate affairs, protect company assets, approve transactions, and represent the interests of the business and its stockholders. Because of this trust, they are expected to avoid conflicts of interest. A conflict of interest happens when a director or officer has a personal, financial, family, or business interest that may affect, or appear to affect, their

When the BIR denies or ignores your protest, the Court of Tax Appeals is your next step. Here's when you can appeal, the strict 30-day deadline, and how the process works.

Received a BIR Letter of Authority? Here is a step-by-step guide to verifying the LOA, meeting deadlines, and protecting your rights from audit through assessment.

Executive Summary Choosing an auditor is an important decision for every corporation in the Philippines. An auditor does more than check financial statements. The right auditor helps strengthen credibility, support regulatory compliance, and give business owners, directors, banks, investors, and government agencies confidence in the company’s financial reports. For corporations, audited financial statements are often required for filings with the Securities and Exchange Commi

Executive Summary In a BIR tax audit, two notices can strongly affect the outcome of your case: the Preliminary Assessment Notice, or PAN, and the Final Assessment Notice, or FAN. These notices may look similar, but they serve different purposes. The PAN gives the taxpayer a chance to explain, object, and submit documents before the assessment becomes final. The FAN, on the other hand, is the formal demand for payment of deficiency taxes. Once a FAN is received, the taxpayer

Executive Summary Receiving a BIR Final Assessment Notice, commonly called a FAN, can be stressful for any taxpayer or business owner. It usually means that the Bureau of Internal Revenue has issued a formal demand for payment of alleged tax deficiencies. However, a FAN is not always the end of the case. Taxpayers still have legal remedies. The most important thing is to act quickly, understand the deadlines, review the assessment carefully, and prepare a proper protest suppo

Executive Summary Board and stockholders’ meetings are important parts of corporate governance. These meetings are where key business decisions are discussed, approved, documented, and implemented. For a corporation, a meeting is not valid simply because people attended or agreed on something. It must follow the requirements under the Revised Corporation Code, the corporation’s Articles of Incorporation, By-Laws, and applicable SEC rules. A properly conducted meeting helps pr

Executive Summary Large companies do not choose auditors based on convenience alone. They choose auditors who have the right qualifications, regulatory accreditation, industry experience, and professional credibility. In the Philippines, many businesses prefer working with accredited auditors because audit reports are not just internal documents. They are often submitted to government agencies, banks, investors, shareholders, and regulators. For companies that are heavily reg