IN a face-to-face workshop that I recently attended, I had a chance to ask my mentors in the public practice this question: What separates us from the non-CPAs who have been granted accreditation by the Bureau of Internal Revenue (BIR) to perform the roles of tax practitioners or agents?

I subsequently revisited BIR Revenue Regulation 11-2006 (https://www. bir.gov.ph/images/bir_files/old_files/ pdf/30669rr%20no.%2011-2006.pdf) to be able to understand the essential elements of what makes a legit tax practice in the Philippines.

The regulation was issued pursuant to Section 244 of the Tax Code of 1997 as last amended by Republic Act 9337, implementing the provisions of Section 6(G) of the same Tax Code authorizing the Commissioner of Internal Revenue to accredit and register tax agents with respect to their tax practice and representation before the BIR.

The regulation also prescribes the following:

– The creation of the Revenue National Accreditation Board (RNAB) in the national office and revenue regional accreditation boards (RRABs) in each revenue region and to define the functions and composition of said boards;

– The guidelines and procedures to be observed in the accreditation and suspension of tax practitioners recognized to practice before the BIR; and

– The duties, restrictions and norms of conduct relating to such practice.

Section 2(E) of the regulation defines “tax practitioners/agents” as those engaged in the following services:

– Regular preparation, certification, audit and filing of tax returns, information returns or other statements or reports required by the Tax Code or regulations;

– Those engaged in the regular preparation of requests for ruling, petitions for reinvestigation, protests, requests for refund or tax credit certificates, compromise settlement and/or abatement of tax liabilities and other official papers, and correspondence with the BIR and other similar or related activities; or

– Those who regularly appear in meetings, conferences and hearings before any office of the BIR officially on behalf of a taxpayer or client in all matters relating to a client’s rights, privileges, or liabilities under laws or regulations administered by the BIR will be deemed engaged in tax practice and are required to apply for accreditation.

Section 3(A), meanwhile, defines the powers and functions of the accreditation boards as follows:

– To act upon all applications to practice before the BIR;

– To institute and provide for the conduct of accreditation, suspension or disaccreditation proceedings; and

– To perform such other duties as are necessary or appropriate to carry out their functions as prescribed by the Secretary of Finance.

It provided further that any action or decision of RRABs only become final upon affirmation by the RNAB and/or by the commissioner.

Other than certified public accountants, lawyers and CPA-lawyers, Section 3(B) provides that RRABs and the RNAB also have jurisdiction over and should require accreditation with the BIR for individuals other than CPAs who meet the qualifications prescribed in RR 11-2006.

According to Section 4 of the regulation, aside from professional accountants and lawyers, individuals who have obtained at least a degree in law, Juris Doctor or its equivalent or a Bachelor’s degree in

Arts, Commerce, or Business Administration with at least 18 units in accounting and/or taxation in a college or university recognized by the Department of Education, Culture and Sports/Department of Education/ Commission on Higher Education or in a foreign school of known repute or one duly recognized by its government may apply for accreditation, provided that in addition to such qualification, he or she must be able to demonstrate or present convincing proof of special competence in tax

matters or tax practice such as previously acquired experience and at least 18 credit hours of special training, seminars, short-term courses, etc., in taxation, obtained not more than one year prior to the application for accreditation, subject to evaluation and approval by the board.

Accreditation procedures detailed in Section 5 require non-CPAs to submit a certified copy of transcripts of records from a university or college showing compliance with the required minimum 18 units in accounting or taxation as prescribed in Section 4(A)(2) or in lieu of this, proof of special competence in tax matters or tax practice such as previously acquired experience and at least 18

credit hours of special training, seminars, short courses, etc., in taxation, obtained not more than one year prior to the application for accreditation, for the appreciation and approval by the concerned board.

With recent developments in the practice of accountancy in the Philippines, we are hopeful that the BIR will also look into the possibility of upscaling qualifications that will put a premium on professionals engaged in the tax practice. This way, taxpayers will be able to fully understand that 18 units of tax subjects in college and 18 units of special training in taxation every three years can never compare to those who voluntarily submit themselves to continuing professional education and development, needing to earn 120 CPD units every three years, to continuously practice their profession to include the tax practice.

Per the BIR’s website, the list of accredited tax practitioners and agents as approved by the RNAB total 5,358 as of February 2022 (https://www. bir.gov.ph/images/bir_files/internal_communications_1/Lists_RNAB/ RNAB-2022%20updated.pdf).

Merilyn Gomez-Cheng, CPA, MBA is the managing owner of Merilyn Gomez-Cheng Accounting Office and a member of the ACPAPP. The views expressed here do not necessarily reflect the opinion of these institutions.